Trade Setup for Monday July 11, 2022: Key Things to Know Before the Market Opening Bell Today

Global market signals

Wall Street rose sharply on Thursday after a few reports of slowing feelings easing. However, it traded smoothly on Friday, with the Dow Jones closing down 0.15% while the tech-heavy Nasdaq jumped 0.12%. The S&P 500 index fell 0.08% and Small Cap 2000 ended down 0.01%.

Asian stocks edged higher on Friday, following Wall Street’s gains on Thursday. However, European stocks were subdued on Friday after two days of gains as investors awaited the release of US nonfarm payrolls data for June later in the day.

Clever technical insights

“Nifty has closed the gap down from 16,173 convincingly and closed above. Nifty is now entering a crucial resistance band of 16293-16610. On the downside, 16026 could offer support. Nifty has not won for more than three consecutive weeks since mid-January 2022. It will be interesting to see if this trend continues or breaks this week,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Expecting a bigger pullback in Indian markets this week, Ruchit Jain, Lead Research at 5paisa.com said, “Nifty has formed a ‘Higher Top Higher Bottom’ pattern on the daily chart from the recent low of 15180. This move retraced the previous corrective phase and the 61.8% retracement of the previous correction from 16800 to 15180 was around 16178. This was the crucial hurdle in this pullback and the index even surpassed This indicates that the market will post a larger pullback to retrace the full correction from 18115 (April 2022 high) to the recent low of 15184.”

The 5paisa.com expert advised investors and traders to buy a ‘buy dip’ strategy this week, quoting: “The 50% retracement of this correction is seen around 16650, while the “200-day EMA” hurdle is around 16550. Therefore, we expect the Nifty to continue its short-term bullish move towards 16550-16650. On the other hand, the support base is moving to the lower high with the bullish movement of the index and support has now moved towards the 16000-15900 range.Even the option sellers have been building positions in 16000. strike which hints that this is a strong support In the coming week, small corrections for one to two sessions cannot be ruled out, but such corrections should be used as a buying opportunity.

Bank Nifty Technical Outlook

“The important pivot level which will act as crucial support for the index is placed at 34600 followed by 34450. On the upside key resistance levels are placed in the 35650 – 35800 areas,” Chinmay Barve said. , Head – Technical and Research on Derivatives at Profitmart Securities.

“The NIFTY BANK Index outperformed the benchmarks rising over 4.5% and closed above the 35,000 mark. At this point, the index is trading at the trendline placement downside and at a 78.6% retracement of the previous fall. It has also entered the cloudy Ichimoku area. So moving ahead; The 35,500 to 36,000 area would be a real test for the bulls since we also have a placement of 200-day moving averages there,” said Mehul Kothari, AVP – Technical Research at Anand Rathi.

“Among the sector indices, the banking index continued its outperformance and took the lead with FMCG stocks to drive the markets higher. The structure of these two sectors remains positive and, therefore, traders should look for trading opportunities in these sectors,” said Ruchit Jain of 5paisa.com.

Smart call data

“According to data presented by nseindia.com at 3:30 p.m. on July 08, the maximum total open interest on calls was observed at 16200, 16500 and 16300 strikes with total open interest of 92208, 81264 and 73610 respectively. of maximum open interest on calls was seen at The 16,600 strike which added 38,011 contracts, followed by the 16,200 strike which added 36,682 contracts and the 16,400 strike which added 32,718 contracts The outcome of the calls was seen at the 16,000 and 16,100 strikes, which lost 5,160 contracts and 10,509 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 16,000 and 16,200 strikes with total open interest of 91,850 and 83,444 contracts respectively. The addition of maximum sell open interest was seen at 16,200 and 16,000 strikes, which added 69,462 and 41,480 contracts respectively.

Nifty Bank call option data

According to data presented by nseindia.com as of 3:30 PM on July 08, the maximum total open interest on calls was observed at 35,500 and 36,000 strikes with total open interest of 70,429 and 55,912 contracts respectively. The addition of maximum call open interest was seen at 35,500 and 36,000 strikes, which added 30,485 and 22,865 contracts respectively. The outcome of calls was observed at 34,800 and 34,500 strikes, which lost 6,696 and 5,129 contracts respectively.

Nifty Bank Put Option Data

According to data presented by nseindia.com as of 3:30 PM on July 08, the maximum total open interest to sell was observed at 34,500 and 35,000 strikes with total open interest of 48,799 and 75,904 contracts respectively. The addition of maximum sell open interest was seen at 35,000 and 35,100 strikes, which added 53,883 and 21,409 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 IPCALAB – OI up 21.75%, ABB OI up 14.23%, M&MFIN OI up 13.26%, TATACHEM OI up 10%, INDIACEM OI up 9.47 %, HAL OI up 9.38% had a long accumulation in July 2022. series where stock prices rose with addition in open interest.

Stock Futures Short Accumulation

TORNTPHARMA OI up 115.46%, M&M OI up 10.53%, CUMMINSIND OI up 10.31%, NAVINFLOUR OI up 8.28%, WIPRO OI up 7% short accumulation in July 2022 where the stock price fell with open interest.

FII DII Data

Foreign institutional investors (IFIs) sold 109.31 crores of shares, as domestic institutional investors (DIIs) became net buyers, to the tune of 34.61 crores in 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 blackout list for the trade date of July 11, 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 was down 0.25% at 3.093, while the 30-year US bond yield was down 0.38% at 3.257.

Board meetings scheduled today

1]5Paisa Capital Limited – Financial Results/Other Business Matters;

2]Vaxtex Cotfab Limited – Other business matters;

3]Techno Electric & Engineering Company Limited – Takeover;

4]Spandana Sphoorty Financial Limited – Financial Results;

5]Satin Creditcare Network Limited – Fundraising;

6]Rossell India Limited – Other Business Matters; and

7]Nakoda Group of Industries Limited – Financial Results.

Corporate Actions Today

1]Pix Transmissions Limited – Annual General Meeting/Dividend – 6 per share;

2]GMM Pfaudler Limited – Bonus 2:1;

3]Control Print Limited – Annual General Meeting/Dividend – 5 per share;

4]Dr. Reddy’s Laboratories Limited – Annual General Meeting/Dividend – 30 per share;

5]Alps Industries Limited – Annual General Meeting;

6]Persistent Systems Limited – Annual General Meeting/Dividend – 11 per share; and

7]Palash Securities Limited – Annual General Meeting.

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