Expects market to open on a negative note on account of sharp decline across the global market. US, Europe and Asian markets fell by 1-2% (Dow fell intra-day low to below 30k psychological level) as investors had mounting fears that the Federal Reserve's aggressive policy tightening could tip the economy into a recession. Both Nasdaq Composite and S&P 500 declined 1% each while Dow Jones shed nearly half percent. European shares were deep in the red on Thursday as the central banks of Switzerland and the UK raised interest rates to help combat sky-high inflation and a looming global recession. UK Index slipped 1% while Bank of England hiked interest rate by 50bps. Both France and Germany Index declined 2% each. Asian stocks headed for a sixth weekly decline following another day of losses for US shares and surging Treasury yields that underscore expectations for tighter monetary policy and a slowing global economy. Equities in Australia, South Korea and South Korea Index fell between half to one percent. Japan Market is shut today. US Dollar Index spiked to 20-year high above 111 and 2-year G-Sec yield surged to fresh 15-year high which is a major concern in the market. SGX Nifty slipped by half percent.

Derivatives Snippet

·         Nifty September future closed at 17647.60 with a premium of 17.80 point v/s 13.10 point premium in the last session.

·         Nifty futures OI increased by 9.80% to 1.37 Cr and Bank Nifty futures OI increased by 10.35% to 24.48 Lakhs.

·         Nifty Put/Call Ratio (OI) increased from 0.95 to 1.04 level.

·         India VIX was down by 2.61% from 19.32 to 18.81 levels. Volatility fallen from highs post global events and buying interest overshadowed the tug of war between the bulls and bears.

·         On Options front, Maximum Call OI is at 18000 then 18500 strike while Maximum Put OI is at 17500 then 17000 strike. Call writing is seen 18200 then 18000 strike while Put writing is seen at 17600 then 17500 strike. Option data suggests a broader trading range in between 17200 to 18200 zones while an immediate range in between 17500 to 18000 zones.

Kunj Capital