Trade Setup for Monday, July 25, 2022: Key Things to Know Before the Market Opening Bell Today

As the market is expected to reopen today from the two-day week gap, the bulls would like to extend their dominance while the bears would wait for a break in the rally that has been ongoing since July 15, 2022.

Here we list the key things regarding the trade setup for today ahead of the stock market opening bell:

Global market signals

Keeping tabs on the scheduled US Fed meeting and the release of second-quarter US GDP data this week, the bull run on Wall Street paused after profit-taking was triggered in the weekend session. -end. The Dow Jones ended down 0.43% while the tech-heavy Nasdaq ended its 3-day rally and closed down 1.87% in Friday’s session. The S&P 500 closed down 0.93% to the south while the Small Cap 2000 lost 1.62%.

European stock markets edged higher on Friday, ending the week on a positive note despite the higher-than-expected interest rate from the European Central Bank as well as disappointing growth data from surveys. Asian stock markets were mostly up, albeit moderately, and on track for their best week in months.

Asian markets morning trend

In early morning trades on Monday, Japan’s Nikkei is down 0.53%, Hong Kong’s Hang Seng is up 0.17% while China’s Shanghai is trading flat and lost 0.01% .

SGX Nifty Technical Outlook

SGX Nifty is down 90 points to 16,634 in Monday’s morning session.

Speaking on the outlook for SGX Nifty, Anuj Gupta, VP Research at IIFL Securities, said: “The overall trend for SGX Nifty today is positive and traders are advised to maintain their strategy of buy on dips and avoid going short. Support for SGX Nifty is placed at 16,450 and 16,200 while it faces hurdles at the 16,800 and 17,020 levels.”

Clever technical insights

“Nifty could see a higher open on Monday in continuation of the current momentum but struggles to post clear gains after 6 days up. Violation to the upside of 16,794 could take the Nifty to 16,889-16,958 bands,” Deepak Jasani, head of retail research at HDFC Securities.

“In terms of retracements, Nifty has broken above the 50% retracement level of the previous correction from 18115 to 18185 and is now approaching the 61.8% mark. It has formed a Higher Top Higher Bottom structure, which is a sign However, the momentum readings on the lower time chart have reached the overbought zone and usually such overbought setups lead to a correction in terms of price or time,” said Ruchit Jain, Lead Research at 5paisa .com.

Bank Nifty Technical Outlook

“The Nifty Bank Index not only crossed the 35,000 mark, but also outperformed the benchmarks by increasing by around 6% in the past week. In this process, the index almost reached the mark of the 37,000. For this week, 37,000 – 37,500 could be an area for some profit booking as we are seeing placement of the downtrend line there,” said Mehul Kothari, AVP – Research technical at Anand Rathi.

Anand Rathi’s Mehul Kothari went on to add that on the downside, the trigger point for the Nifty Bank Index could be 34,300 points which is the gap zone and a breach of it could result in some weakness or profit booking in bank stocks. There is also an empty area in this area. In contrast, supports are placed between 36,000 and 35,000 levels, Kothari said.

Smart call data

“The maximum total open interest on calls was observed at 16,800, 17,000 and 17,100 strikes with total open interest of 93,420, 124,562 and 70,688 contracts respectively. The settlement of calls was observed at 16,500 and 16,600 strikes, which lost 3,539 and 5,761 contracts respectively,” said Chinmay Barve, head of technical and derivatives research at Profitmart Securities.

Smart Put Data

“The addition of maximum sell open interest was seen at 16600, 16500 and 16200 strikes, which added 91749 145672 and 77614 contracts respectively,” said Anuj Gupta of IIFL Securities.

Nifty Bank call option data

“Maximum total open interest on calls was observed at 37,000, 37,200 and 37,500 strikes with total open interest of 83,092, 27,989 and 62,774 contracts respectively. 36,000 and 36,200 strikes resulting in the loss of 8,150 and 13,985 contracts respectively,” said Chinmay Barve of Profitmart Securities.

Nifty Bank Put Option Data

“The addition of maximum sell open interest was observed at 36,500, 36,400 and 36,000 strikes, which added 73,385, 28,664 and 80,972 contracts respectively,” Anuj Gupta said.

FII DII Data

Foreign institutional investors (IFIs) sold 675 crores of shares, as domestic institutional investors (DIIs) bought net 739 crore shares on July 22, according to preliminary data available on the NSE.

Banned by F&O NSE on July 25, 2022

The National Stock Exchange (NSE) has added the shares of Delta Corp, Indiabulls Housing Finance and RBL Bank to its F&O banned list for the trade date of July 25, 2022. Blackout securities under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.

U.S. bond yield

The US 10-year bond yield was up 0.27% at 2.789 while the US 30-year bond yield was up 0.19% at 3.002.

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