News and Global Index updates.

🌹 🌞Good Morning 🌞🌹

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened flat to positive but failed to hit psychological 18000 marks and drifted lower by negating its higher lows of last three sessions. It surpassed previous day’s high but fallen lower in the absence to conquer key resistance zones and wiped out, uptick of last three trading sessions. It formed a Bearish Engulfing on daily scale while a Shooting Star or a Doji on weekly scale which indicates some profit booking declines at higher zones

◆ Now it has to cross and hold above 17777 zones for an up move towards 17888 and 18000 zones whereas support is intact at 17650 and 17550 zones

◆ India VIX was up by 5.39% from 17.17 to 18.28 levels. Volatility rose during the day giving some discomfort to the bulls and needs to sustain below 18 zones for market stability

◆ On Option front, Maximum Call OI is at 18000 then 17900 strike while Maximum Put OI is at 17000 then 17500 strike. Call writing is seen at 18000 then 18600 strike while Put writing is seen at 17300 then 17200 strike with significant unwinding at 17900 strike. Option data suggests an immediate trading range between 17500 to 18000 zones

◆ Bank Nifty opened positive but cascaded down right from the start of the session and gave up its entire gains of the week. It touched intraday lows of 38848 levels and closed with losses of 670 points. It formed a Bearish Engulfing candle on daily scale and negated the formation of higher lows of last six trading sessions. On weekly frame it formed a small bodied Bearish candle with longer upper shadow indication some pressure at higher zones

◆ Now it has to hold above 38888 zones for an up move towards 39500 and 39750 zones whereas supports are placed at 38750 and 38500 zones

◆ Bullish setup in IRCTC, Adaniports, Ambujacem, LT, ACC and ZEEL 

◆ Bearish setup in IEX, MGL, Glenmark, Bharatforg, Apollo Hospital, Indigo, Biocon, M&MFin, Drreddy, Wipro, Divislabs and Metropolis

*Technical & Derivativ<script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2018464773832153"

     <script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2018464773832153"

     crossorigin="anonymous"></script>

@@@@@@@@@@@@@@@@@

*Derivatives update for podcast*

Good morning !! Greetings from Motilal Oswal. Derivatives update for Monday, 22nd August 2022.

India VIX was up by 5.39% from 17.17 to 18.28 levels. Volatility rose during the day giving some discomfort to the bulls and needs to sustain below 18 zones for market stability.

Nifty *Put/Call Ratio* (OI) decreased from 1.36 to 0.88 level.

On Option front, Maximum Call OI is at 18000 then 17900 strike while Maximum Put OI is at 17000 then 17500 strike. Call writing is seen at 18000 then 18600 strike while Put writing is seen at 17300 then 17200 strike with significant unwinding at 17900 strike. 

*Option data suggests an immediate trading range between 17500 to 18000 zones.*

For monthly Bank Nifty, Maximum Put OI is at 38000 then 39000 strike and maximum Call OI is placed at 39500 then 40000 strike. We have seen Call writing in 39500 while Put writing is witnessed at 38500 strike.   

Bank Nifty Put Call Ratio decreased from 1.20 to 0.69. Implied volatility rose from 17.3 to 19 levels.

Bank Nifty (CMP 38,985.95)

Data setup for Bank Nifty suggests a trading range in between *38500/38750 to 39500/39750 zones.*

Looking ahead at the FII’s derivatives activity, there was short built up in index futures, call selling & put buying in index options and long liquidation in stock futures.

In the cash market, FIIs were net buyers to the tune of 1111 crores while DII’s were net sellers worth 1633 crores. FIIs Index Long Short Ratio decreased to 48.43%.

Derivatives data and price set up suggests, Nifty has to cross and hold above 17777 zones for an up move towards 17888 and 18000 zones whereas support is intact at 17650 and 17550 zones.

Bank Nifty has to hold above 38888 zones for an up move towards 39500 and 39750 zones whereas supports are placed at 38750 and 38500 zones.

Thank you. Have a great trading day and week ahead..!!

🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞

<script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2018464773832153"

     crossorigin="anonymous"></script>

*Brokerage reports* 

Kotak Inst Eqt on *ICICI* *Bank* Buy, TP Raised to Rs 1025

CLSA on *ICICI Bank* 

Buy, TP Rs 1040

Nomura on *KEC Int* 

Buy, TP Rs 566

Kotak Instl EQ on *GAIL* maintain sell with tgt price of 115

Nomura on *Zomato* initiate reduce with tgt price of 50

CS on steel maintain UP on *JSW Steel* , neutral on Tata Steel

Jefferies on *Consumer Staples* 

Margin outlook still weak for 2Q but recent input price correction should drive a margin recovery in 2HFY23 1Q also saw consensus u/g EPS, after consistent d/g in past few quarters. 

 *GCPL, HUL, BRIT* remain top picks.

________________________________

<script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2018464773832153"

     crossorigin="anonymous"></script>

*TRADE SETUP* 

Big question: Has the market made a lower top? 

Dollar Index at 108.3, very close to recent highs 

Some Fed members hawkish ahead of Jackson Hole 

Alert: Jackson Hole symposium on Aug 25-27 

Nifty closed below 5 DEMA, next to watch is 10 DEMA 

Alert: 10 DEMA at 17,645 and 20 DEMA at 17,317 

FIIs buy in cash, create hedges via selling Index futures 

Friday: Market leading Index Bank Nifty led fall 

Nasdaq showing reversal sign from 200 DMA 

Indian market has shown strong correlation with Nasdaq.