Trade setup for Monday, 25th July 2022: Key things to know before stock market's Opening Bell today | Mint
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Business News/ Markets / Stock Markets/  Trade setup for Monday, 25th July 2022: Key things to know before stock market's Opening Bell today
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Trade setup for Monday, 25th July 2022: Key things to know before stock market's Opening Bell today

Trade setup for Monday: Nifty could see a higher opening on Monday continuing from the current momentum but find it difficult to record sharp gains after 6 days of rise, say experts

Stock market today: NSE has added Delta Corp, Indiabulls Housing Finance and RBL Bank stocks under its F&O ban list for trade date 25th July 2022. (MINT)Premium
Stock market today: NSE has added Delta Corp, Indiabulls Housing Finance and RBL Bank stocks under its F&O ban list for trade date 25th July 2022. (MINT)

Trade setup for Monday, 25th July 2022: On account of strong global cues and short covering by FIIs, Indian stock market ended in green zone on all 5 sessions last week. NSE Nifty posted one of the best weeks of the last few months and ended above 16,700 with weekly gains of over 4 per cent. BSE Sensex surged 4.30 per cent and regained 56,000 levels. 

As market is set to reopen today after the gap the two days week off, bulls would like to extend their dominance while bears would be waiting for a pause in the rally continuing since 15th July 2022.

Here we list out key things in regard to trade setup for today ahead of stock market's opening bell:

Global markets cues

Keeping an eye on scheduled US Fed meeting and US Q2 GDP data release lined up this week, bull run on the Wall Street took a pause after profit-taking trigger on the weekend session. Dow Jones finished 0.43 per cent lower whereas tech heavy Nasdaq ended its 3 days rally and closed 1.87 per cent lower on Friday session. S&P 500 closed 0.93 per cent southward whereas Small Cap 2000 lost 1.62 per cent.

European stock markets edged higher Friday, ending the week on a positive note despite the European Central Bank’s larger-than-expected interest rate as well as disappointing survey growth data. Asian stock markets were mostly higher though mildly and on course for their best week in months.

Asian markets early morning trend

In early morning deals on Monday, the Japanese Nikkei is down 0.53 per cent, Hong Kong's Hang Seng is up 0.17 per cent whereas Chinese Shanghai is trading flat and went off 0.01 per cent.

SGX Nifty technical outlook

SGX Nifty is down by 90 points at 16,634 in early morning session on Monday.

Speaking on SGX Nifty outlook Anuj Gupta, Vice President — Research at IIFL Securities said, “Overall trend for SGX Nifty today is positive and traders are advised to maintain buy on dips strategy and avoid taking any short position. Support for SGX Nifty is placed at 16,450 and 16,200 whereas is facing hurdle at 16,800 and 17,020 levels." 

Nifty technical outlook

"Nifty could see a higher opening on Monday continuing from the current momentum but find it difficult to record sharp gains after 6 days of rise. 16,794 could be the next resistance in the near term while 16,588 to 16,627 could provide support. Upward breach of 16,794 could lead the Nifty to 16,889 to 16,958 band," Deepak Jasani, Head of Retail Research at HDFC Securities.

"In terms of retracements, Nifty has surpassed the 50 percent retracement level of the previous correction from 18115 to 18185 and is now approaching the 61.8 percent mark. It has been forming a Higher Top Higher Bottom structure which is a positive sign. However, the momentum readings on the lower time chart have reached the overbought zone and generally such overbought set-ups lead to either a price wise or a time wise correction," said Ruchit Jain, Lead Research at 5paisa.com.

Bank Nifty technical outlook

"The index Nifty Bank not only sneaked above 35,000 mark but also outperformed the benchmarks by rising around 6 per cent during the week gone by. In this process; the index has almost reached the 37,000 mark. For this week, 37000 – 37500 might be a zone for some profit booking since we are witnessing a placement of falling trend line there," said Mehul Kothari, AVP — Technical Research at Anand Rathi.

Mehul Kothari of Anand Rathi went on to add that on the downside, the trigger point for Nifty Bank index could be 34,300 mark, which is the gap area and a breach of the same could bring in some softness or profit booking in the banking stocks. Also there is a gap area in that zone. On the downside, supports are placed at 36,000 to 35,000 levels, said Kothari.

Nifty Call Option data

"Maximum total Call open interest was seen at 16800, 17000 and 17100 strikes with total open interest of 93420, 124562 and 70688 contracts respectively. Maximum Call open interest addition was seen at 16800, 17000 and 17100 strikes which added 35912, 36338 and 37501 contracts respectively. Call unwinding was seen at 16500 and 16600 strikes which shed 3539, 5761 contracts respectively," said Chinmay Barve, Head — Technical and Derivative Research at Profitmart Securities.

Nifty Put Option data

"Maximum Put open interest addition 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 data

"Maximum total Call open interest was seen at 37000, 37200 and 37500 strikes with total open interest of 83092, 27989 and 62774 contracts respectively. Maximum Call open interest addition was seen at 37000, 37200 and 37500 strikes which added 39540, 16455 and 35169 contracts respectively. Call unwinding was seen at 36000 and 36200 strikes which shed 8150 and 13985 contracts respectively," said Chinmay Barve of Profitmart Securities.

Nifty Bank Put Option data

"Maximum Put open interest addition was seen at 36500, 36400 and 36000 strikes which added 73385, 28664 and 80972 contracts respectively," said Anuj Gupta.

FII DII data

Foreign institutional investors (FIIs) have net sold 675 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought 739 crore worth of shares on July 22, as per provisional data available on the NSE.

NSE F&O ban on 25th July 2022

The National Stock Exchange (NSE) has added Delta Corp, Indiabulls Housing Finance and RBL Bank stocks under its F&O ban list for trade date 25th July 2022. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.

US bond yield

US 10 year bond yield is up by 0.27 per cent at 2.789 whereas US 30 year bond yield is up by 0.19 per cent at 3.002.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 25 Jul 2022, 06:13 AM IST
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