Trade Setup for Friday: SGX Nifty, Fitch India GDP Ratings, Other Things to Know Before the Bell Opens

Trade setup for Friday: Due to speculation that the US Fed might hike interest rates by 100 basis points next week, the Indian stock market ended lower for the second consecutive session on Thursday. The Nifty 50 index lost 126 points and closed at 17,877 while BSE Sensex lost 412 points and closed at 59,934 levels. The Nifty Bank Index finished 196 points lower at 41,209 levels. The mid-cap index ended 0.31% in the positive, although the expected decline ratio was negative at 0.76:1.

While Fitch Ratings has cut its growth forecast for India for the current fiscal year, here we list the key things you need to know before the stock market opens today:

Global market signals

On Wall Street, major benchmarks ended lower on growing fears of a global recession and FedEx Corporation’s warning of weak earnings. The Dow Jones lost 0.56%, the Nasdaq plunged 1.43%, the S&P 500 fell 1.13% while Small Cap 2000 lost 0.66% on Thursday. Other global equity markets were mixed on Thursday as the likelihood of further rises in global borrowing costs, including a possible 100 basis point hike in U.S. rates next week, kept bears on edge. .

Fitch Ratings forecast for Indian GDP

Fitch Ratings cut its growth forecast for India for the current fiscal year to 7% from the previous estimate of 7.8%. The rating agency also cut its GDP growth forecast for the next fiscal year to 6.7% from the previous estimate of 7.4%.

Fitch now expects global GDP to grow by 2.4% in 2022 and just 1.7% in 2023. The Eurozone and the UK are now expected to enter recession later this year and Fitch expects that the United States will experience a mild recession in mid-2023. .

Asian market indices

As of early morning today, the Japanese Nikkei is down 1.20%, the Hong Kong Hang Seng is up 0.44% while the South Korean Kospi is down 0.66%.

SGX Nifty today

In early morning trades on Friday, SGX Nifty quotes 18 points lower at 17,776, signaling a sideways or range-bound trade.

Clever technical insights

“Nifty corrected once again above the 18,000 level and underperformed other markets for a change. Broad markets continue to lag while large caps appeared to be under mild selling pressure 18,096 to 17,771 could be the band for the near-term Nifty,” said the head of retail research at HDFC Securities.

“The Nifty 50 index has rallied smartly from Wednesday’s lows, but no follow-up buying was seen in today’s session. If we look at the daily chart, the Nifty appears to be trading In a ‘Rising Wedge’ pattern on the daily chart, the support end of the pattern is placed around 17,770 and the ’20 DEMA’ support is around 17,700. they are exceeded, the implication of the breakout of the above mentioned pattern will be bearish until the index trades above the mentioned support, there is not much to worry about. momentum readings on the daily charts are still positive but have given a negative cross on the hourly chart, so we would be watching closely to see if the readings on the hourly chart give a positive cross first, which would open up more room for the upside. However, if the index breaks through the supports c above and the daily readings also give a negative crossover, it would be time to get cautious. On the flip side, immediate Nifty resistance is seen around 18100 followed by the 18200-18250 range,” said Ruchit Jain, Lead Research at 5paisa.com

Nifty Bank Technical Outlook

“Bank Nifty’s immediate support lies between 41,000 and 41,100 levels while it faces a hurdle between 42,000 and 42,100 levels. This means that a wider Bank Nifty range for intraday traders lies between 41,000 and 42,100 levels,” Mehul Kothari, AVP – Technical Research told Anand Rathi.

Smart call data

According to data presented by nseindia.com as of 3:30 p.m. on September 15, major total open interest for calls was seen at 18,000, 18,100 and 18,200 strikes with total open interest of 75,385, 58,314 and 57,301 contracts respectively. The addition of major call open interests was seen at 18,000 and 18,100 strikes, which added 49,786 and 35,554 contracts respectively.

Smart Put Data

Total Put open interest was observed at 17900, 17800 and 17600 strikes with total open interest of 33490, 38948 and 37617 contracts respectively. A major addition of open interest was seen at 17,800 and 17,600 strikes, which added 17,238 and 27,229 contracts respectively.

Nifty Bank call option data

The call major total open interest was seen at 41400 and 41500 strikes with a total open interest of 18669 and 57372 contracts respectively. The addition of open interest for the major call was seen at 41,400 and 41,500 strikes, which added 10,432 and 33,304 contracts respectively.

Nifty Bank Put Option Data

Put’s total open interest was seen at 41,000 and 40,500 strikes with total open interest of 27,628 and 20,714 contracts respectively. A major addition of open interests was seen at 41,000 strikes, which added 14,408 contracts.

FII DII Data

Foreign institutional investors (IFIs) sold 1270.68 crores of shares, as domestic institutional investors (DII) sold net 928.86 crores of shares on September 15, according to data available on the NSE.

NSE F&O bans stock listing today

The National Stock Exchange (NSE) has added the shares of RBL Bank and Indiabulls Housing Finance to its F&O banned list for the trade date of September 16, 2022. Blackout securities under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

U.S. bond yield

The US 10-year bond yield is down 0.46% at 3.443 while the US 30-year bond yield is down 0.50% at 3.463.

Catch all the trade news, market news, breaking news and latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Post your comment

About Mildred B.

Check Also

European stocks open at the close, data, earnings and market movements

European markets were slightly higher on Monday as investors braced for a busy week in …