Home / Markets / Stock Markets /  Trade setup for July 7, 2022: Key things to know before stock market's Opening Bell today
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Trade setup for Thursday: Indian stock market staged a strong rally on Wednesday backed by sectoral indices like MNC, FMCG, consumption, auto, IT, banking and financial services and media while sectoral indices like PSE and energy remained on the losing side. Put Call Ratio stood at 0.90 and volatility index India VIX ended at 20.27 down by 2.50 per cent. Nifty 50 index ended 178 points higher at 15,989 whereas BSE Sensex surged 616 points and closed at 53,750 levels. Nifty Bank index shot up 508 points and closed at 34,324 levels.

Global market cues

On Wall Street, Dow Jones ended 0.23 per cent up, tech-heavy Nasdaq surged 0.35 per cent whereas S&P 500 went up 0.36 per cent. European stock markets also traded higher Wednesday, rebounding strongly with investors seeking bargains after the previous session’s slump on increasing recession fears. An end to strike by Norwegian oil and gas workers eased worries of an energy supply crunch. However, Asian stocks mostly slipped on Wednesday as investors' fears deepened that the continent is leading the world into recession. The surge in COVID-19 infections in China also hurt market sentiment as it reignited worries about potential lockdowns.

Asian markets early morning trends

Asian markets are trading sideways in early morning session. Japanese Nikkei is down 0.32 per cent while Hong Kong's Hang Seng is 0.98 per cent lower.  Chinese and South Korean markets too went off from their previous closes.

SGX Nifty outlook

SGX Nifty today is trading 59 points higher at 16,034 levels in early morning deals today. 

Speaking on SGX Nifty outlook, Anuj Gupta, Vice President — Research at IIFL Securities said, “Overall trend at SGX Nifty is sideways to positive. High risk traders can take small range of SGX Nifty from 15,850 to 16,320 whereas broader range of SGX Nifty today is expected to remain in between 15,600 to 16,500 mark."

Nifty technical outlook

"Nifty has risen well on July 06. A move above 16026 could result in more upsides while 15,785 could be near-term support," said Deepak Jasani, Head of Retail Research at HDFC Securities.

Expecting pullback move in Nifty 50 index, Ruchit Jain, Lead Research at said, "Recently, we have seen a high inverse correlation in Dollar Index and Nifty. However, the recent upside move in the Dollar Index has not seen any correction or new lows in the Nifty and this should be seen as a positive divergence. This short term divergence could result in more pullback move in the index as traders with short positions will look to cover up."

“The formation of a long bull candle on Wednesday above the important hurdle of 15,850 to15,900 levels indicates the possibility of a sharp upside breakout. The said area of 15,800 to 15,900 has been a significant value area in the past and the recent downside breakout has resulted in the formation of the long bear candle (16th June). Hence, a sustainable move above 15950 levels could mean a sharp upside for the market ahead," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Nifty Bank technical outlook

"The important pivot level, which will act as crucial support for the index, is placed at 33,800 mark, followed by 33,600 mark. On the upside, key resistance levels are placed at 34,750 and 34,950 marks," said Chinmay Barve, Head — Technical and Derivatives Research at Profitmart Securities.

Nifty Call Option data

"Maximum Call open interest of 1,67,468 contracts was seen at 16,200 strike which saw an addition of 13,528 contracts. This is followed by 16,300 strike, which holds total open interest of 1,42,889 contracts with addition of 3,671 contracts," said Chinmay Barve of Profitmart Securities.

The Profitmart Securities expert went on to add that the maximum open interest addition of 40,430 contracts was seen at 16,400 strike and 30,003 contracts were added in 16,250 strike. This option data suggests that price zone of 16,250 to 16,400 is likely to act as a strong resistance zone for the Nifty 50 index. Call unwinding was seen at 16,000 strike, which shed 30,990 contracts, 15,900 strike which shed 78,925 contracts, followed by 16,150 strike which shed 4,634 contracts.

Nifty Put Option data

Maximum Put open interest of 1,52,197 contracts was seen at 15,800 strike which saw an addition of 64,451 contracts, followed by 1,42,136 contracts at 15,700 strike. Hence price zone of 15,700 to 15,800 is likely to act as a support level in the 07 July 2022 Weekly options series. No major Put unwinding was seen in strikes ranging from 15,800 to 16,200.

FII DII data

Foreign institutional investors (FIIs) have net sold 330.13 crore worth of shares, whereas domestic institutional investors (DIIs) turned net buyers, to the tune of 1464.33 crore worth of shares on July 6, as per provisional data available on the NSE.

Nifty Bank Call Option data

Maximum Call open interest addition of 17,301 contracts was seen at 35,100 strike with total open interest of 33,859 contracts. This is followed by 34,700 strike, which holds total open interest of 49,650 contracts with addition of 15,792 contracts.

Strike of 34,500 saw total open interest of 88,535 contracts. Call unwinding was seen at 34,200 strike, which shed 20,804 contracts, followed by 34,300 strike which shed 14,929 contracts in open interest and strike of 34,400 which shed 4,102 contracts in open interest.

Nifty Bank Put Option data

Maximum Put open interest addition of 76,554 contracts was seen at 34,000 strike. Followed by 34,200 strike which added 40,485 contracts. No major Put unwinding was seen at strikes ranging from 33,900 to 34,600.

Stocks in F&O ban

National Stock Exchange (NSE) has not added any stock under its F&O ban list for July 7, 2022. 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.

US bond yield

US' 10 year bond yield is 0.17 per cent down at 2.899 whereas US' 30 year bond yield is down by 0.53 per cent at 3.101 levels.

Top 10 July 2022 series futures contracts

Reliance, Bajaj Finance, Tata Steel, Infosys, HDFC Bank, TCS, Kotak Mahindra Bank, Hindalco Industries, Hindustan Unilever and ICICI Bank.

The board meeting scheduled for 7th July 2022

1] FCS Software Solutions Limited - Other business matters;

2] GM Breweries Limited - Financial results;

3] Tarmat Limited - Other business matters; and

4] Vakrangee Limited - Financial results.

Corporate actions on 7th July 2022

Bank of India: Dividend 2 Per Share;

Crompton Greaves Consumer Electricals Limited: Dividend 2.50 Per Share;

DCM Shriram Limited: Dividend 4.90 Per Share;

Mayur Uniquoters Ltd: Dividend 2 Per Share;

Nilkamal Limited: Dividend 15 Per Share;

Vishnu Chemicals Limited: Dividend 2 Per Share;

GlaxoSmithKline Pharmaceuticals Limited: Dividend 30 Per Share/Special Dividend 60 Per Share;

L&T Technology Services Limited: Dividend 15 Per Share;

Greenlam Industries Limited: Dividend 1.20 Per Share;

Hitech Corporation Limited: Dividend Re 1 Per Share;

JM Financial Limited: Dividend 1.15 Per Share;

ZF Commercial Vehicle Control Systems India Limited: Dividend 12 Per Share;

AstraZeneca Pharma India Limited: Dividend 8 Per Share;

Rossari Biotech Limited: Dividend 0.50 Per Share;

Oberoi Realty Limited: Dividend 3 Per Share;

Minda Industries Limited: Bonus 1:1 and Dividend 1 Per Share;

Navin Fluorine International Limited: Dividend 6 Per Share;

Axis Bank Limited: Dividend 1 Per Share.

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