Home / Markets / Stock Markets /  Trade setup for July 6, 2022: Key things to know before stock market's Opening Bell today
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Trade setup for today: After showing a sustainable upside move in the last few sessions, Indian stocks witnessed a sharp intraday downward reversal from the highs on Tuesday session and closed the day in negative territory. The NSE Nifty 500 index ended 24 points lower at 15,810 levels whereas BSE Sensex shed 100 points and closed at the 53,234 mark. Nifty Bank index lost 125 points and closed the day at 33,815 levels. Among sectors, power & metals were the main gainers while IT and banks were the main losers.

Global cues

On Wall Street, Dow Jones shed 0.42 percent and closed at 30,967 whereas tech-heavy Nasdaq surged 1.75 percent and closed at 11,322 levels. S&P 500 added 0.16 percent and closed at the 3,831 mark. European equities too feel the sell-off pressure as concern over the possibility of a recession outweighed optimism over US-China talks aimed at tariff reductions. The euro fell to a 20-year low against the dollar.

Asian market's early trend

Japanese Nikkei is down 1.26 per cent, Chinese Shanghai is trading flat at 14,958 while Hang Seng is down 0.51 per cent in early morning trade.

US bond yield

US 10 years bond yield is 0.64 per cent up at 2.829 whereas US 30 years bond yield is 0.65 per cent up at 3.053 mark.

SGX Nifty outlook

SGX Nifty today is up 82 points and it is currently trading at 15,848 mark.

Speaking on important levels regarding SGX Nifty today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Short-range for SGX Nifty today is placed in 15,600 to 16,080 whereas the broader range for the index is placed between 15,340 to 16,350 levels." He said that current trend at SGX Nifty seems positive today.

Nifty Technical Outlook

"On Tuesday session, Nifty 50 formed a bearish candle on the daily charts, which resembles shooting Star candlestick formation. Support for the Nifty is placed at 15,650 to 15,700 zones while on the upside, the index is likely to face strong resistance around 16,000 to 16,100 zones," said Avinash Gorakshkar, Head of Research at Propfitmart Securities.

Ruchit Jain, Lead Research, 5paisa.com said, "After consolidating in a range for six trading sessions, Nifty gave a breakout from the range with a gap up today, but the momentum fizzled after hitting the 16000 mark and Nifty corrected to fill the intraday gap at the close. On the daily chart, the Nifty index has retraced 50 percent of the recent corrective phase from 16800 to 15200 and hence 16000 was an important hurdle. An up move in the U.S. Dollar index led to a correction in our markets as recently we have seen a strong inverse correlation between the Nifty and the Dollar Index. The INR surpassed the 79.20 mark and further depreciation in the rupee will certainly not bode well for equities. Hence, traders should keep a close tab on the currency movement along with the global market momentum which will drive the equities in the near term."

Nifty Bank index outlook

"The important pivot level, which will act as crucial support for the Nifty Bank index, is placed at the 3,3450 mark, followed by 33,200 levels. On the upside, key resistance levels are placed at 34300 and 34,400 levels," said Avinash Gorakshkar.

Nifty Call Option data

Maximum Call open interest of 1,80,813 contracts was seen at 16,000 strikes with saw an addition of 73,206 contracts, hence 16,000 is likely to act as a crucial resistance level for the 07 July 2022 weekly expiry series.

This is followed by 16,200 strikes, which holds the total open interest of 1,53,145 contracts with an addition of 35,591 contracts.

Call unwinding was seen at 15700 strikes, which shed 13021 contracts, followed by 15,650 strikes which shed 4507 contracts, and 15600 strikes which shed 4764 contracts.

Nifty Put Option data

Maximum Put open interest of 1,09,250 contracts was seen at 15,500 strikes which saw an addition of 19,333 contracts. Hence 15,500 is likely to act as a support level in the 07 July 2022 Weekly series.

Put unwinding was seen at 15700 strikes, which shed 5845 contracts in open interest.

Maximum Call open interest addition of 35134 contracts was seen at 34300 strikes with a total open interest of 70412 contracts. Hence 34300 is likely to act as a crucial resistance level for the 07 July 2022 weekly expiry series.

FII DII data

Foreign institutional investors (FIIs) have net bought 1,295.84 crore worth of shares, whereas domestic institutional investors (DIIs) remained net sellers, to the tune of 257.59 crore worth of shares on July 5, as per provisional data available on the NSE.

Nifty Bank Call Option data

This is followed by a 34,500 stroke, which holds the total open interest of 91,274 contracts with the addition of 20,745 contracts. A strike of 34,000 saw a total open interest of 98056 contracts with an addition of 22,754 contracts.

Call unwinding was seen at 33,700 strikes, which shed 19,412 contracts, followed by 33,500 strikes which shed 6,688 contracts in open interest, and strike of 33,600, which shed 4,315 contracts in open interest.

Nifty Bank Put Option data

Maximum Put open interest addition of 20,208 contracts was seen at 34,000 strikes. Followed by 34,300 strikes, which added 10,268 contracts. Put unwinding was seen at 33,400 strikes, which shed 5,790 contracts in open interest.

Stocks in F&O ban

National Stock Exchange (NSE) has not added any stock under its F&O ban list for July 6. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

Top 10 July 2022 futures contracts

The top 10 July 2022 futures contracts on Individual Securities Traded are – RELIANCE, INFY, TCS, HDFCBANK, TATASTEEL, HINDALCO, ICICIBANK, TATAMOTORS, BAJFINANCE, and HDFC.

The board meeting scheduled for 6th July 2022

1] Oswal Chemicals & Fertilizers Limited - Dividend;

2] City Union Bank Limited - Fundraising/Other business matters;

3] PBA Infrastructure Limited - Voluntary delisting;

4] MAS Financial Services Limited - Other business matters;

5] Power Grid Corporation of India Limited - Fundraising/Other business matters;

6] Setco Automotive Limited - Other business matters;

7] Sarthak Metals Limited - Other business matters; 

Nifty Bank Call Option data — weekly expiry 7th July 2022

Corporate action on 6th July 2022

1] Orchid Pharma Limited - Annual General Meeting;

2] Ponni Sugars (Erode) Limited - Annual General Meeting/Dividend - 5.50 Per Share; and

3] Century Textiles & Industries Limited - Dividend - 4 Per Share.

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