BackTrade setup for July 8, 2022: Key things to know before stock market's Opening Bell today
Trade setup for today: Nifty has given a breakout in its upside move on Wednesday session, say stock market experts
PremiumTrade setup for today: Indian stocks continued its northward journey for second straight session on Thursday backed by sectoral indices like metals, PSU bank, realty, private bank, commodities, auto and financial services while sectoral indices like FMCG, energy and MNC were lackluster. Put Call Ratio stood at 1.04 and volatility index India VIX ended at 19.20, down by 5 per cent. The BSE Sensex surged by 427 points to 54,178, while the Nifty 50 index shot up by 143 points to 16,133 levels. Nifty Bank rallied 596 points and finished Thursday’s session at 34,920 mark.
Global market cues
Global stocks were up as softer oil prices and a weaker dollar signaled fears about inflation and the pace of monetary tightening are fading. On Wall Street, Dow Jones shot up 1.12 per cent, tech-heavy Nasdaq surged 2.28 per cent whereas S&P 500 went up 1.50 per cent. Asian stocks managed gradual gains on Thursday as investors grappled with the risks of a recession and a potential pause in interest rate hikes. European stocks rose as investors debated whether market valuations have turned attractive in the wake of a sharp selloff.
SGX Nifty technical outlook
SGX Nifty is trading 133 points higher at 16,264 levels in early morning trade on Friday.
“SGX Nifty today is trading in short range of 16,060 to 16,450 while broader range is placed in between 15,880 to 16,700," said Anuj Gupta, Vice President — Research at IIFL Securities. He went on to add that SGX Nifty trend is positive today and any dip would be a good buying opportunity.
Asian markets in early morning session
Among major Asian markets, Japanese Nikkei is up 1.29 per cent, Hong Kong's Hang Seng has opened 0.96 per cent higher whereas Chinese Shanghai is 0.37 per cent higher in early morning deals.
Nifty technical outlook
"Nifty is now close to filling the down gap of 16173. Once that is achieved sustainably, the near-term bearishness will get nullified and a move towards 16,347 could begin. 16,011 to 16,025 could be support band for the Nifty in the near term," said Deepak Jasani, Head of Retail Research at HDFC Securities.
Expecting further upside on Nifty 50 index, Ruchit Jain, Lead Research at 5 paisa.com said, "Nifty has given a breakout from a falling trendline resistance in its upside move on Wednesday session and a higher top higher bottom structure on the lower time frame charts. Thus, the short term trend remains positive till this structure continues. However, the index has now approached one important resistance at 16,180, which is the 61.8 per cent retracement of the previous correction from 16,800 to 15,180. A close above the same will be a confirmation of further pullback move towards 16,255 at least."
Bank Nifty technical outlook
"The important pivot level, which will act as crucial support for the index, is placed at 34,500 levels, followed by 34,350 mark. On the upside, key resistance levels are placed at 35,400 and 35,860 marks," said Chinmay Barve, Head — Technical and Derivatives Research at Profitmart Securities.
Predicting further rally in Nifty Bank index, Ruchit Jain of 5paisa.com said, "The Bank Nifty index is continuing its outperformance which is likely to continue given the participation from the large cap space."
Nifty Call Option data
"Maximum total Call open interest was seen at 16200, 16300 and 16500 strikes with total open interest of 55193, 41632 and 45710 respectively. Maximum open interest addition was seen at 16300 strike, which added 26677 contracts followed by 16600 strike, which added 24658 contracts and 16500 strike, which added 23711 contracts. Call unwinding was seen at 15800 and 15900 strike, which shed 1987 contracts and 3148 contracts respectively," said said Chinmay Barve of Profitmart Securities.
Nifty Put Option data
Chinmay Barve of Profitmart Securities went on to add that the maximum total Put open interest was seen at 15900, 16000 and 15800 strikes with total open interest of 61227, 48351 and 43817 contracts respectively. Maximum open interest addition was seen at 15900, 16100 and 16000 strikes, which added 43581, 37728 and 32704 contracts respectively.
Nifty Bank Call Option data
As per data shown by nseindia.com at 3.30 pm on 07 July, Maximum total Call open interest was seen at 35000 and 35500 strikes with total open interest of 41043 and 39540 contracts respectively. Maximum Call open interest addition was seen at 35500 and 35000 strikes which added 23811 and 22669 contracts respectively. Call unwinding was seen at 34300 and 34400 strikes, which shed 5848 and 4186 contracts respectively.
Nifty Bank Put Option data
As per data shown by nseindia.com at 3.30 pm on 07 July, Maximum total Put open interest was seen at 34500, 35000 and 34800 strikes with total open interest of 34448, 20670 and 16632 contracts respectively. Maximum Put open interest addition was seen at 34500, 35000 and 34800 strikes which added 30469, 19223 and 16439 contracts respectively. No major Put unwinding was seen at strikes ranging from 34500 to 35500 for weekly options expiry of 14 July 2022.
Stock futures long build-up
Stocks like ABB - OI up 26.60%, GUJGAS OI up 26% , GSPL OI up 15.43%, BSOFT OI up 14.60%, DALBHARAT OI up 13.80%, APOLLOTYRE OI up 10.30%, INDMART OI up 10% and TATACHEM OI up 8.90% have witnessed long buildup in July 2022 series where stock prices rose with addition in open interest.
Stock futures short build-up
HAL OI up 17%, BALRAMCHIN OI up 14%, GODREJCP OI up 9.65%, SRTRANSFIN OI up 9.30%, HDFCLIFE OI up 7% and RELIANCE OI up 7% have witnessed short buildup in July 2022 series where stock price fell with addition in open interest.
FII DII data
Foreign institutional investors (FIIs) have net sold ₹925.22 crore worth of shares, whereas domestic institutional investors (DIIs) turned net buyers, to the tune of ₹980.59 crore worth of shares on July 6, as per provisional data available on the NSE.
Stocks in F&O ban
The National Stock Exchange (NSE) has not added any stock under its F&O ban list for trade date 08 July 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 years bond yield is down by 0.39 per cent at 2.996 whereas the US 30 years bond yield is down by 0.12 per cent at 3.192.
Board meetings scheduled today
1] Tata Consultancy Services Limited - Dividend/Financial results;
2] Kohinoor Foods Limited - Financial results/Other business matters;
3] Khandwala Securities Limited - Other business matters;
4] Marksans Pharma Limited – Buyback;
5] MMTC Limited - Financial results;
6] Pritika Auto Industries Limited - Other business matters;
7] Shrenik Limited - Financial results/Other business matters;
8] Sakar Healthcare Limited - Other business matters; and
9] TCPL Packaging Limited - Other business matters.
Corporate actions today
1] Lumax Industries Limited - Annual General Meeting/Dividend - ₹13.5 Per Share;
2] Ingersoll Rand (India) Limited - Dividend - ₹20 Per Share;
3] Jubilant Foodworks Limited - Dividend - ₹1.20 Per Share;
4] JSW Ispat Special Products Limited - Annual General Meeting;
5] Ganges Securities Limited - Annual General Meeting;
6] Lumax Auto Technologies Limited - Annual General Meeting/Dividend - ₹3.50 Per Share;
7] Sundaram Finance Limited - Annual General Meeting/Dividend - ₹10 Per Share;
8] Torrent Pharmaceuticals Limited - Bonus 1:1,
9] Titan Company Limited - Annual General Meeting/Dividend - ₹7.50 Per Share;
10] Onward Technologies Limited - Annual General Meeting/Dividend - ₹3 Per Share; and
11] Pressman Advertising Limited - Annual General Meeting/Dividend - Re 1 Per Share.
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