As the market reopens today after the two-day gap week off, the bulls would be looking to extend their dominance while the bears will be waiting for a break in the rally that has been going on since July 15, 2022.
Here are the key takeaways regarding today’s trade setup ahead of the stock market’s opening bell:
Global market indices
With an eye on the scheduled US Fed meeting and the release of US Q2 GDP data lined up this week, the bull run on Wall Street was paused after profit-taking during the key session week The Dow Jones finished 0.43% lower, while tech-heavy Nasdaq ended its 3-day rally and closed 1.87% lower on Friday. The S&P 500 closed 0.93% lower, while the Small Cap 2000 lost 1.62%.
European stocks rose on Friday and ended the week on a positive note despite higher-than-expected interest rates from the European Central Bank as well as disappointing growth data from the survey. Asian stocks were mostly higher, albeit slightly, and on course for their best week in months.
Asian markets trend early in the morning
In early Monday morning deals, Japan’s Nikkei is down 0.53%, Hong Kong’s Hang Seng is up 0.17%, while China’s Shanghai is trading flat and down 0 .01%
SGX Nifty Technical Outlook
SGX Nifty is down 90 points at 16,634 in the morning session on Monday.
Speaking on the outlook for SGX Nifty, Anuj Gupta, Vice President, Research, IIFL Securities said, “The overall trend of SGX Nifty today is positive and traders are advised to maintain the buy on dips strategy and avoid take no short position. Support for SGX Nifty lies at 16,450 and 16,200 while it faces hurdles at 16,800 and 17,020 levels.”
Ingenious technical perspective
“Nifty could see a higher opening on Monday continuing the current momentum, but struggling to post strong gains after 6 days of rally. 16,794 could be the next short-term resistance, while 16,588-16,627 could provide support. Breakdown at upside from 16,794 could take the Nifty to the 16,889-16,958 band,” Deepak Jasani, head of retail research at HDFC Securities.
“In terms of retracement, Nifty has crossed the 50 percent retracement level of the previous correction from 18115 to 18185 and is now nearing the 61.8 percent mark. It has been forming an upper upper upper lower structure, which is a positive sign. However, the Momentum readings on the lower time chart have reached the overbought zone, and typically these overbought setups lead to a price- or time-based correction.” , said Ruchit Jain, Lead Research at 5paisa.com.
Bank Nifty Technical Outlook
“The Nifty Bank index not only crept above the 35,000 mark but also outperformed the benchmarks by rising around 6 percent over the past week. In the process, the index has almost reached 37000 mark. For this week, 37000 – 37500 could be an area for profit booking as we witness bearish trend line placement,” said Mehul Kothari, AVP – Technical research by Anand Rathi.
Anand Rathi’s Mehul Kothari added that on the downside, the trigger point for the Nifty Bank index could be 34,300, which is the gap area and a breach of the same could lead to some softness or profit reserve in bank shares. There is also a void area in this area. On the downside, supports are placed between 36,000 and 35,000 levels, Kothari said.
Nifty Call Option Data
“The call’s maximum open interest was seen at 16,800, 17,000 and 17,100 strikes with total open interest of 93,420, 124,562 and 70,688 contracts, respectively. The call’s maximum sum of open interest was seen at 16,800, 17,000 and 17,100 and 17,100 strikes, which added 17,103, 35 and 37 contracts and 17,100 strikes respectively. Call cancellation was seen at 16,500 and 16,600 strikes which removed 3,539 and 5,761 contracts respectively,” he said. said Chinmay Barve, Head of Technical and Derivative Research at Profitmart Securities.
Nifty Put Option Data
“Maximum open interest sum was seen at 16600, 16500 and 16200 strikes which added 91749, 145672 and 77614 contracts respectively,” said Anuj Gupta of IIFL Securities.
Nifty Bank Call Option Details
“Maximum call open interest was seen at 37,000, 37,200 and 37,500 strikes with total open interest of 83,092, 27,989 and 62,774 contracts respectively. Sum of call open interest was seen at 37,000 , 37,200 and 37,500 and 37,500 strikes, which added 31,954 strikes and 37,500 strikes, which added 31,954 strikes. respectively. Call cancellation was seen with 36,000 and 36,200 strikes removing 8,150 and 13,985 contracts respectively,” he said. said Chinmay Barve of Profitmart Securities.
Nifty Bank Put Option Data
“The sum of maximum open interest was seen at 36,500, 36,400 and 36,000 strikes which added 73,385, 28,664 and 80,972 contracts respectively,” said Anuj Gupta.
BE YOU date
Foreign institutional investors (FIIs) have net sold ₹675 million shares, while domestic institutional investors (DIIs) have bought net ₹739 million shares on July 22, according to provisional data available with the NSE.
NSE F&O ban on July 25, 2022
The National Stock Exchange (NSE) has added shares of Delta Corp, Indiabulls Housing Finance and RBL Bank to its F&O ban list for the trading date of July 25, 2022. The securities in the segment ban period F&O includes companies where the value has exceeded 95 percent of the market-wide position limit.
US bond yield
The 10-year U.S. Treasury yield is up 0.27% at 2.789, while the 30-year U.S. Treasury yield is up 0.19% at 3.002.
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