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Home / Markets / Stock Markets /  Trade setup for Monday: Nifty call put ratio to SGX Nifty today — things to know before stock market's Opening Bell
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Trade setup for Monday: The week gone by completely belonged to the bulls. Last week, in all five sessions bears tried hard to make their presence felt on the Dalal Street but every time bulls managed to recover from the bears' blow. As a result, the magnitude of the rise was small but the direction remained positive. NSE Nifty ended at 17,397 with a weekly gain of 1.39 per cent whereas BSE Sensex finished at 58,387 with a weekly gain of 1.42 per cent. Broad market indices also closed marginally in the positive and the advance decline ratio was positive at 1.28:1.

Amid rising tension in US China Taiwan issue and strong US job data on Friday, we list out key things that you should know before stock market's opening bell today:

Global markets cues

Despite strong US job reports, Wall Street remained sideways as Dow Jones ended 0.23 per cent higher whereas tech heavy Nasdaq finished 0.50 per cent lower on Friday session. S&P 500 went off 0.16 per cent while Small Cap 2000 surged 0.81 per cent on the weekend session. Stocks in Europe struggled for direction but were still set for a weekly gains investors brace for the monthly US jobs report that’s likely to enliven the recession debate. Asian stock markets rose Friday ahead of an update on the health of the US jobs market while the Federal Reserve weighs whether more rate hikes are needed to cool surging inflation.

Asian markets' early morning trend

In early morning session on Monday, the Japanese Nikkei is down 0.13 per cent, Hang Seng is up 0.14 per cent whereas Chinese Shanghai went off 0.01 per cent.

SGX Nifty technical outlook

SGX Nifty is down by 67 points at 17,356 levels in early morning deals on Monday trade session.

“Shorter range of SGX Nifty today is placed in between 17,200 to 17,520 levels whereas broader range of the index lies between 16,980 to 17,680 mark," said Anuj Gupta, Vice President — Research at IIFL Securities.

Anuj Gupta said that overall trend of SGX Nifty today may remain positive and suggested ‘buy on dips’ strategy for day traders.

Nifty technical outlook

"Though the Nifty has gained 1.39 per cent over the week, it has closed in a 15 point band in the last three sessions with intra day recoveries and selloffs seen. This bull bear fight may soon end and markets may take a direction for the short term. 17595 and 17161 are the key levels on either side," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Major support for NSE Nifty is placed at 17,160 which will be the important support now and hence all existing long positions should now be trailed with a stop loss below this support. On the other hand, 17,500 is the immediate resistance and if the index moves above that, it will result in a continuation of the uptrend and it can then move towards the 78.6 per cent of the entire correction which is around 17,870 mark. Traders are advised to keep a close tab on the above mentioned levels and then trade in the direction of the breakout," said Ruchit Jain, Lead Research at 5paisa.com.

Bank Nifty technical outlook

"The Nifty Bank index remained volatile during the week gone by with many ups and downs but closed a per cent higher from previous close. Eventually it ended near 38,000 mark. At this juncture the index is hovering near the potential reversal zone of bearish SHARK harmonic pattern. Thus we expect some profit booking from the zone of 38,000 to 38,500 during the coming week. On the downside, 37,000 to 36,500 might prove to be an important supports for the coming week," said Mehul Kothari, AVP — Technical Research at Anand Rathi.

Nifty Call Put Option data

"NIFTY FUT attempting highs of 17500 and above for the second consecutive day definitely hints on the bullish sentiment. Option chain for the weekly expiry suggests 17500CE/17600CE having overall maximum exposure of over a lakh contracts each, with fresh additions of over 60 thousand contracts seen at various immediate strikes all the way till 18100CE. PE writers active at 17000PE - with over 80 thousand contracts, followed by 17200/17400/17400 strikes adding more than 60 thousand contracts each," said Shilpa Rout, Derivatives Lead Analyst at Prabhudas Lilladher.

Nifty call put ratio

"PCR OI at 17300 strike is 2 and 17400 is nearly 0.8, which looks favourable for the BULLs going ahead as well," Shilpa Rout of Prabhudas Lilladher said.

Bank Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 05 August, Maximum total Call open interest was seen at 38000, 38200 and 38500 strikes with total open interest of 101145, 49177 and 91931 contracts respectively. Maximum Call open interest addition was seen at 38000, 38100 and 38200 strikes which added 41507, 34019 and 25068 contracts respectively. Call unwinding was seen at 37700 and 37500 strikes which shed 4345 and 2267 contracts respectively.

Bank Nifty Put Option data

As per data shown by nseindia.com at 3.30 pm on 05 August, Maximum total Put open interest was seen at 37800 and 37500 strikes with total open interest of 38187 and 57820 contracts respectively. Maximum Put open interest addition was seen at 37900, 37800 and 37500 strikes which added 27087, 25881 and 22219 contracts respectively. No major Put unwinding was seen at strikes ranging from 37500 to 38500.

FII DII data

Foreign institutional investors (FIIs) have net bought 1,605.81 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold 495.94 crore worth of shares on August 5, as per provisional data available on the NSE.

NSE F&O ban on 4th August 2022

The National Stock Exchange (NSE) has added Escorts, Balrampur Chini and Delta Corp stock under its F&O ban list for trade date 8th August 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 0.25 per cent to 2.847 whereas US 30 year bond yield is up by 0.63 per cent to 3.084.

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