Trade setup for Monday: Nifty call put ratio to SGX Nifty today — key things to know before stock market's Opening Bell

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Trade setup for Monday: On account of positive global cues and return of FPI buying, key benchmark indices Sensex and Nifty finished in positive territory on third successive week. Last week, NSE Nifty gained 2.62 per cent whereas it logged 8.70 per cent monthly gain in July 2022. Similarly, BSE Sensex surged 2.67 per cent in the week gone by while it logged monthly gain of 8.50 per cent in July 2022. In the last week of July 2022 session, mid-cap index underperformed compared to NSE Nifty rising 1.01 per cent. Advance decline ratio was sharply up at 2.06:1.

As the Dalal Street is getting ready for first trade session in August 2022, here we list out key things that one should know before stock market’s opening bell today:

Global markets cues

Global stocks rose on Friday, on course for their best month since late 2020 as traders bet a weakening US economy could slow the pace of monetary tightening in the US, while the dollar struggled broadly against its rivals. On Wall Street, key benchmark indices finished July 2022 with largest gains since April 2020. On last session of the month gone by, Dow Jones gained 0.97 per cent, Nasdaq shot up 1.88 per cent, S&P 500 went 1.42 per cent north whereas Small Cap 2000 finished 0.77 per cent higher.

Growth in the euro zone economy accelerated in the second quarter of the year, but the region’s prospects get hit as Russia continues to reduce gas supplies. The 19-member bloc registered a gross domestic product rate of 0.7 per cent in the second quarter, according to Eurostat, Europe’s statistics office, beating expectations of 0.2 per cent growth. It comes after a GDP rate of 0.5 per cent in the first quarter.

SGX Nifty outlook

In early morning deals on Monday, SGX Nifty is quoting 48 points higher from its previous trade session.

Nifty technical outlook

“The line chart of Nifty 50 index on the weekly scale indicates that we are at a very strong resistance zone. With four gap up opening in last ten trading sessions; it would be wiser to take some profits at this stage. A weekly close above 17400 would negate this supply structure and we could see an extend move towards 17800 mark. On the other hand; bears would take the front seat only below 16400 mark. Till then profit booking is expected but we could witness some buying at every dips. In short trading this market might a bit difficult in the month of August 2022,” said Mehul Kothari, AVP — Technical Research at Anand Rathi.

Nifty call put ratio

Mehul Kothari went on to add that PCR (Put Call Ratio) of Nifty is above 1.40 mark, which indicates some exhaustion.

Bank Nifty technical outlook

“Nifty Bank index dominated the benchmarks by rising over 12 per cent during the month. The index is now hovering near 37500 mark which is the potential reversal zone of a bearish harmonic pattern called CYPHER. On the upside; 38000 is also a reversal zone for bearish SHARK pattern. Thus we expect some profit booking from the zone of 37500 – 38500 during the coming month. On the downside; 36800 – 36200 might prove to be an important supports for this week,” Mehul Kothari of Anand Rathi added.

Nifty Call Option data

As per data shown by nseindia.com at 3.30 pm on 29 July, Maximum total Call open interest was seen at 17300, 17400 and 17500 strikes with total open interest of 83698, 53861 and 86452 contracts respectively. Maximum Call open interest addition was seen at 17200, 17300 and 17500 strikes which added 36208, 44998 and 39576 contracts respectively. Call unwinding was seen at 16900 and 17000 strikes which shed 21623 and 10725 contracts respectively.

Nifty Put Option data

As per data shown by nseindia.com at 3.30 pm on 29 July, Maximum total Put open interest was seen at 17100, 17000 and 16900 strikes with total open interest of 80352, 122557 and 96222 contracts respectively. Maximum Put open interest addition was seen at 17100, 17000 and 16900 strikes which added 77106, 101300 and 56048 contracts respectively. No major Put unwinding was seen at strikes ranging from 16800 to 17400.

Nifty Bank Call Option data

As per data shown by nseindia.com at 3.30 pm on 29 July, Maximum total Call open interest was seen at 37700, 37800 and 38000 strikes with total open interest of 41896, 36814 and 81032 contracts respectively. Maximum Call open interest addition was seen at 37700 and 38000 strikes which added 35421 and 34731 contracts respectively. Call unwinding was seen at 36900 and 37000 strikes which shed 1942 and 1957 contracts respectively.

Nifty Bank Put Option data

As per data shown by nseindia.com at 3.30 pm on 29 July, Maximum total Put open interest was seen at 37500, 37300 and 37000 strikes with total open interest of 61515, 33956 and 67048 contracts respectively. Maximum Put open interest addition was seen at 37500 and 37000 strikes which added 46340 and 22595 contracts respectively. No major Put unwinding was seen at strikes ranging from 37000 to 38000 strikes.

FII DII data

Foreign institutional investors (FIIs) have net bought 1,046.32 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought 6,721.30 crore worth of shares on July 29, as per provisional data available on the NSE.

US bond yield

US 10 year bond yield is up by 1.07 per cent at 2.670 whereas US 30 year bond yield is down by 1.70 per cent at 3.028.

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