Trade setup for Monday: Nifty call put vs SGX Nifty today: key things to know before the stock market bell opens

Trade setup for Monday: Due to positive global signals and the return of FPI buying, key benchmarks Sensex and Nifty closed in positive territory for the third consecutive week. Last week, NSE Nifty gained 2.62% while it recorded an 8.70% monthly increase in July 2022. Similarly, BSE Sensex has increased 2.67% in the past week while it has seen an increase 8.50% monthly in July 2022. In the final week of the July 2022 session, the mid-cap index underperformed the NSE Nifty up 1.01%. The anticipated decline ratio increased sharply to 2.06: 1.

As Dalal Street is preparing for its first trading session in August 2022, here we list the key things you should know before the stock market opening bell today:

Global Markets Signals

Global equities rose Friday, on track for their best month since late 2020, as traders bet a weakening US economy could slow the pace of US monetary tightening as the dollar fought largely against the its rivals. On Wall Street, key benchmark indices ended July 2022 with the largest gains since April 2020. In the last session of the past month, the Dow Jones gained 0.97%, the Nasdaq jumped 1.88% , the S&P 500 went north by 1.42% while Small Cap 2000 closed up 0.77%.

The growth of the euro zone economy accelerated in the second quarter of the year, but the outlook for the region is affected by the fact that Russia continues to reduce gas supplies. The 19-member bloc recorded a gross domestic product rate of 0.7 percent in the second quarter, according to Eurostat, the European statistical office, exceeding expectations of 0.2 percent growth. It comes after a GDP rate of 0.5 percent in the first quarter.

SGX Elegant perspective

In Monday’s morning negotiations, SGX Nifty is trading 48 points higher than in the previous trading session.

Elegant technical perspective

“The Nifty 50 index line chart on a weekly scale indicates that we are in a very strong resistance zone. With four gaps opening in the last ten trading sessions, it would be wiser to take profits at this stage. A weekly close above. 17400 would nullify this supply structure and we could see an extended movement towards 17800. On the other hand, bears would only take the front row seat below 16400. Until then, profit is being recorded, but we may see a few buys at every drop. short trading in this market could be a bit difficult in August 2022, “said Mehul Kothari, AVP – Technical Research of Anand Rathi.

Elegant call put report

Mehul Kothari added that Nifty’s PCR (Put Call Ratio) is above 1.40, indicating some exhaustion.

Bank Nifty’s Technical Perspectives

“The Nifty Bank index dominated the benchmarks climbing more than 12% during the month. The index is now close to 37500, which is the potential reversal zone of a bearish harmonic pattern called CYPHER. To the upside; 38000 is also a reversal zone for bearish SHARK pattern. So we expect some profit booking from the 37500 – 38500 zone over the next month. On the downside; 36800 – 36200 could prove to be important support for this week, “added Mehul Kothari of Anand Rathi.

Nifty Call option data

According to the data shown by nseindia.com at 3:30 pm on July 29, the maximum total open interest of the Call was seen at 17300, 17400 and 17500 strikes with the total open interest of 83698, 53861 and 86452 contracts respectively. Call’s maximum open interest addition was observed at 17200, 17300 and 17500 strikes which added 36208, 44998 and 39576 contracts respectively. Call resolution was observed at 16900 and 17000 strikes which lost 21623 and 10725 contracts respectively.

Put Nifty Option Data

According to data shown by nseindia.com at 3:30 pm on July 29, the maximum total open interest was seen at 17100, 17000 and 16900 strikes with the total open interest of 80352, 122557 and 96222 contracts respectively. The maximum addition of open Put interest was observed at 17100, 17000 and 16900 strikes which added 77106, 101300 and 56048 contracts respectively. No major Put developments were observed in strikes ranging from 16800 to 17400.

Nifty Bank Call option data

According to data shown by nseindia.com at 3:30 pm on July 29, the Call’s maximum total open interest was seen at 37700, 37800 and 38000 strikes with a total open interest of 41896, 36814 and 81032 contracts respectively. Call’s maximum open interest addition was observed at 37700 and 38000 strikes which added 35421 and 34731 contracts respectively. Call termination was observed at 36900 and 37000 strikes which dissolved the 1942 and 1957 contracts respectively.

Nifty Bank put options data

According to data shown by nseindia.com at 3:30 pm on July 29, the maximum total open interest was seen at 37500, 37300 and 37000 strikes with the total open interest of 61515, 33956 and 67048 contracts respectively. The maximum addition of open Put interest was seen at 37500 and 37000 strikes which added 46340 and 22595 contracts respectively. No major PUT developments were observed in strikes ranging from 37,000 to 38,000 strikes.

FII DII data

Foreign institutional investors (FII) made net purchases 1,046.32 crore of shares, while domestic institutional investors (DII) bought net 6,721.30 crore of shares on July 29, according to provisional data available on NSE.

US bond yield

The yield on US 10-year bonds increased 1.07% to 2.670, while the yield on US 30-year bonds fell 1.70% to 3.028.

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