Trade setup for Monday: Nifty call put ratio to SGX Nifty today – key things to know before the stock market opening bell

Trade setup for Monday: Due to positive global signals and the return of REIT buying, major benchmarks Sensex and Nifty ended in positive territory for the third week in a row. Last week, NSE Nifty gained 2.62% as it recorded a monthly gain of 8.70% in July 2022. Similarly, BSE Sensex jumped 2.67% over the past week as recorded a monthly gain of 8.50% in July 2022. week of the July 2022 session, the mid-cap index underperformed the NSE Nifty up 1.01%. The anticipated rate of decline has increased sharply to 2.06:1.

As Dalal Street gears up for the first trading session in August 2022, here we list the key things to know ahead of the trading opening bell today:

Global market signals

Global stocks rose on Friday, on track for their best month since the end of 2020, with traders betting that a weakening US economy could slow the pace of monetary tightening in the US, as the dollar struggled largely against its rivals. On Wall Street, major benchmarks ended July 2022 with the biggest gains since April 2020. In the last session of the month, the Dow Jones gained 0.97%, the Nasdaq jumped 1.88 percent, the S&P 500 went 1.42 percent north while the Small Cap 2000 finished 0.77 percent higher.

Growth in the eurozone economy accelerated in the second quarter of the year, but the region’s outlook is dimmed as Russia continues to cut gas supplies. The 19-member bloc recorded a gross domestic product rate of 0.7% in the second quarter, according to Eurostat, the European statistics office, beating expectations for growth of 0.2%. It comes after a GDP rate of 0.5% in the first quarter.

Clever insights from SGX

In early morning trading on Monday, SGX Nifty quotes 48 points higher than its previous trading session.

Clever technical insights

“The line chart of the Nifty 50 index on the weekly scale indicates that we are in a very strong resistance zone. With four gap opens in the last ten trading sessions, it would be wiser to take some profits A weekly close above 17400 would negate this supply structure and we could see an extended move towards the 17800 mark. Until then, profit booking is expected, but we could see buying on every dip so short trading in this market could be a bit challenging in August 2022,” said Mehul Kothari, AVP – Research technical at Anand Rathi.

Nifty call put ratio

Mehul Kothari added that Nifty’s PCR (Put Call Ratio) is over 1.40 which indicates some exhaustion.

Bank Nifty Technical Outlook

“The Nifty Bank Index led the benchmarks rising more than 12% during the month. The index is now hovering around the 37,500 mark, which is the potential reversal zone for a harmonic pattern bearish called CYPHER On the upside, 38,000 is also a bearish SHARK setup reversal zone, so we expect profit bookings in the 37500 – 38500 area in the coming month. 36800 – 36200 could prove to be an important support for this week,” added Anand Rathi’s Mehul Kothari.

Smart call data

According to data presented by nseindia.com at 3:30 p.m. on July 29, the maximum total open interest on calls was observed at 17300, 17400 and 17500 strikes with total open interest of 83698, 53861 and 86452 contracts respectively. The addition of maximum call open interest was seen at 17200, 17300 and 17500 strikes, which added 36208, 44998 and 39576 contracts respectively. The outcome of the appeals was observed at 16,900 and 17,000 strikes which lost 21,623 and 10,725 contracts respectively.

Smart Put Data

According to data presented by nseindia.com at 3:30 p.m. on July 29, the maximum total open interest to sell was seen at 17,100, 17,000 and 16,900 strikes with total open interest of 80,352, 122,557 and 96 222 contracts respectively. The addition of maximum sell open interest was seen at 17100, 17000 and 16900 strikes, which added 77106, 101300 and 56048 contracts respectively. No major unwinding of the put was seen in strikes ranging from 16800 to 17400.

Nifty Bank call option data

According to data presented by nseindia.com at 3:30 p.m. on July 29, the maximum total open interest on calls was observed at 37,700, 37,800 and 38,000 strikes with total open interest of 41,896, 36,814 and 81,032 contracts respectively. Adding maximum call open interest was seen at 37,700 and 38,000 strikes, which added 35,421 and 34,731 contracts respectively. The outcome of the appeals was observed at 36,900 and 37,000 strikes which canceled the 1942 and 1957 contracts respectively.

Nifty Bank Put Option Data

According to data presented by nseindia.com at 3:30 p.m. on July 29, the maximum total open interest to sell was observed at 37,500, 37,300 and 37,000 strikes with total open interest of 61,515, 33,956 and 67 048 contracts respectively. The addition of maximum put open interest was seen at 37,500 and 37,000 strikes, which added 46,340 and 22,595 contracts respectively. No major put unwinding was seen in strikes ranging from 37,000 to 38,000 strikes.

FII DII Data

Foreign Institutional Investors (IFIs) bought 1,046.32 crore of shares, as domestic institutional investors (DIIs) bought net 6,721.30 crore shares on July 29, according to preliminary data available on the NSE.

U.S. bond yield

The US 10-year bond yield is up 1.07% at 2.670 while the US 30-year bond yield is down 1.70% at 3.028.

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