Trade Setup for July 8, 2022: Key Things to Know Before the Market Opening Bell Today

Global market signals

Global equities rose as lower oil prices and a weaker dollar signaled fears about inflation and the pace of monetary tightening are fading. On Wall Street, the Dow Jones climbed 1.12%, the tech-heavy Nasdaq jumped 2.28% while the S&P 500 rose 1.50%. Asian stocks made gradual gains on Thursday as investors grappled with the risks of a recession and a potential pause in interest rate hikes. European stocks rose as investors wondered whether market valuations had turned attractive following a strong sell-off.

SGX Nifty Technical Outlook

SGX Nifty is trading 133 points higher at 16,264 levels in early morning trading on Friday.

“SGX Nifty is trading today in a short range of 16,060-16,450, while a wider range is between 15,880-16,700,” said Anuj Gupta, VP – Research at IIFL Securities. He went on to add that the SGX Nifty trend is positive today and any dip would be a good buying opportunity.

Asian markets in morning session

Among major Asian markets, Japan’s Nikkei is up 1.29%, Hong Kong’s Hang Seng opened up 0.96% while China’s Shanghai is up 0.37% in early trades the morning.

Clever technical insights

“Nifty is now close to closing the gap down from 16173. Once this is sustainably reached, the short-term decline will be reversed and a move towards 16,347 may begin. 16,011 to 16,025 may be a support band for the near-term Nifty,” said Deepak Jasani, head of retail research at HDFC Securities.

Expecting a further rise in the Nifty 50 index, Ruchit Jain, Lead Research at 5 paisa.com, said: “Nifty gave a break from trendline downside resistance during its bullish move from Wednesday’s session and an upper lower upper structure on the lower timeframe So the short term trend remains positive until this structure continues, however the index has now approached significant resistance at 16,180, which is the 61.8% retracement of the previous correction from 16,800 to 15,180. A close above the same would be a confirmation of further pullback towards at least 16,255.”

Bank Nifty Technical Outlook

“The important pivot level, which will act as crucial support for the index, is placed at 34,500 levels, followed by 34,350 points. On the upside, key resistance levels are placed at 35,400 and 35,860 points” said Chinmay Barve, Head – Technical and Derivatives Research at Profitmart Securities.

Predicting a further rally for the Nifty Bank Index, Ruchit Jain of 5paisa.com said, “The Bank Nifty Index continues its outperformance which is likely to continue given the participation of the large-cap space.”

Smart call data

“Maximum total open interest on call was seen at 16200, 16300 and 16500 strikes with total open interest of 55193, 41632 and 45710 respectively. Maximum open interest was seen at 16300 strikes which added 26677 contracts followed by 16600 strike, which added 24658 contracts and 16500 strike, which added 23711 contracts. The outcome of the calls was observed at the 15800 and 15900 strike, which lost 1987 contracts and 3148 contracts respectively,” said Chinmay Barve of Profitmart Securities.

Smart Put Data

Chinmay Barve of Profitmart Securities went on to add that Put’s maximum total open interest was 15900, 16000 and 15800 strikes with total open interest of 61227, 48351 and 43817 contracts respectively. The maximum addition of open interest was observed at 15900, 16100 and 16000 strikes, which added 43581, 37728 and 32704 contracts respectively.

Nifty Bank call option data

According to data presented by nseindia.com at 3:30 PM on July 07, the maximum total open interest on calls was observed at 35,000 and 35,500 strikes with total open interest of 41,043 and 39,540 contracts respectively. The addition of maximum call open interest was seen at 35,500 and 35,000 strikes, which added 23,811 and 22,669 contracts respectively. The outcome of calls was observed at 34,300 and 34,400 strikes, which respectively lost 5,848 and 4,186 contracts.

Nifty Bank Put Option Data

According to data presented by nseindia.com at 3:30 p.m. on July 07, the maximum total open interest to sell was observed at 34,500, 35,000 and 34,800 strikes with total open interest of 34,448, 20,670 and 16 632 contracts respectively. The addition of maximum sell open interest was seen at 34,500, 35,000 and 34,800 strikes, which added 30,469, 19,223 and 16,439 contracts respectively. No major put unwinds were seen in strikes ranging from 34500 to 35500 for weekly options expiring on July 14, 2022.

Stock Futures Long Accumulation

Stocks like ABB – OI up 26.60%, GUJGAS OI up 26%, GSPL OI up 15.43%, BSOFT OI up 14.60%, DALBHARAT OI up 13.80 %, APOLLOTYRE OI up 10.30%, INDMART OI up 10% and TATACEM OI up 8.90% had a long accumulation in the July 2022 series where stock prices rose with interest open.

Stock Futures Short Accumulation

HAL OI up 17%, BALRAMCHIN OI up 14%, GODREJCP OI up 9.65%, SRTRANSFIN OI up 9.30%, HDFCLIFE OI up 7% and RELIANCE OI up 7% %. open interest.

FII DII Data

Foreign institutional investors (IFIs) sold 925.22 crores of shares, as domestic institutional investors (DIIs) became net buyers, to the tune of 980.59 crore shares on July 6, according to preliminary data available on the NSE.

Stocks under F&O ban

The National Stock Exchange (NSE) has not added any stocks to its F&O banned list for the trade date of July 08, 2022. Blackout stocks in the F&O segment include companies in which the stock has exceeded 95 % of market-wide position limit. .

U.S. bond yield

The 10-year US bond yield is down 0.39% at 2.996, while the 30-year US bond yield is down 0.12% at 3.192.

Board meetings scheduled today

1]Tata Consultancy Services Limited – Dividend/Financial Results;

2]Kohinoor Foods Limited – Financial Results/Other Business Matters;

3]Khandwala Securities Limited – Other Business Matters;

4]Marksans Pharma Limited – Takeover;

5]MMTC Limited – Financial Results;

6]Pritika Auto Industries Limited – Other Business Matters;

7]Shrenik Limited – Financial Results/Other Business Matters;

8]Sakar Healthcare Limited – Other Business Matters; and

9]TCPL Packaging Limited – Other Business Matters.

Corporate Actions Today

1]Lumax Industries Limited – Annual General Meeting/Dividend – 13.5 per share;

2]Ingersoll Rand (India) Limited – Dividend – 20 per share;

3]Jubilant Foodworks Limited – Dividend – 1.20 per share;

4]JSW Ispat Special Products Limited – Annual General Meeting;

5]Ganges Securities Limited – Annual General Meeting;

6]Lumax Auto Technologies Limited – Annual General Meeting/Dividend – 3.50 per share;

7]Sundaram Finance Limited – Annual General Meeting/Dividend – 10 per share;

8]Torrent Pharmaceuticals Limited – Bonus 1:1,

9]Titan Company Limited – Annual General Meeting/Dividend – 7.50 per share;

10]Onward Technologies Limited – Annual General Meeting/Dividend – 3 per share; and

11]Pressman Advertising Limited – Annual General Meeting/Dividend – Re 1 per share.

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