Trade Setup for Tuesday: Key things to know before stock market's opening bell today

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Equity indices advanced for the fourth straight session on Monday to close at over three-month highs, boosted by robust buying in market heavyweight Reliance Industries (RIL) and auto stocks amid firm global trends.

Stock market today: Key things to know before opening bell

Global market cues

Stocks in Asia retreated on Tuesday amid deepening worries about a global economic slowdown, risks that are supporting demand for bonds as a haven. Shares dropped in Japan, South Korea and Australia, while futures for Hong Kong earlier shed more than 1%. 

Wall Street ended a three-day winning streak and crude prices plunged on Monday as economic data from the US, Europe and China showed demand weakening under inflation pressures.

SGX Nifty

SGX Nifty indicates a choppy start for the Indian stock markets on Tuesday. Singapore Nifty (SGX Nifty) is the Indian Nifty that is traded in Singapore Stock Exchange and is considered to be the first indication of the Indian markets opening.

Nifty Technical outlook

The opening upside gaps of 20th July, 28th July and 29th July are remains intact and they signal bullish runaway gaps. This signal Nifty could be placed in mid of an up trended movement and one may expect further upside for the short term. However, Nifty is nearing key overhead resistance of around 17400-17450 levels, as per the concept of change in polarity (opening downside gap of 18th April and couple of swing highs),” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Nifty call option data

As per data, Maximum total Call open interest was seen at 17500 and 17600 strikes with total open interest of 130158 and 115342 contracts respectively. Maximum Call open interest addition was seen at 17400, 17500 and 17700 strikes which added 33667, 41465 and 30940 contracts respectively. Call unwinding was seen at 17100 and 17200 strikes which shed 38161 and 20693 contracts respectively.

Nifty put option data

Maximum total Put open interest was seen at 17000, 17100 and 17200 strikes with total open interest of 144326, 104061 and 169112 contracts respectively. Maximum Put open interest addition was seen at 17200 and 17300 strikes which added 139381 and 75710 contracts respectively. No major Put unwinding was seen at strikes ranging from 17000 to 17700, said Profitmart Securities.

FII DII data

Foreign institutional investors (FIIs) have net bought 2,320 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold 822 crore worth of shares on August 1, as per provisional data available on the NSE.

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