Trade setup for July 20, 2022: Things to know before stock market’s Opening Bell

Trade setup for July 20, 2022: Things to know before stock market’s Opening Bell

Market


Trade setup for today, 20th July 2022: After showing sharp upside move on Monday, both Sensex and Nifty shifted into a choppy movement with positive bias on Tuesday. However, Indian stock market managed to end in green territory for third successive day on Tuesday. Nifty 50 index gained 62 points and finished at 16,340 whereas BSE Sensex added 246 points and finished Tuesday’s session at 54,768 levels. Nifty Bank jumped 1 per cent and closed at 35,720 mark. Broad markets did well as advance decline ratio came in at 1.61:1 and small-cap and mid-cap indices were up 0.88 per cent and 0.68 per cent respectively. The Volatility Index India or VIX ended slightly higher at 17.20 on Tuesday.

Global cues

In Wall Street, Dow Futures rise as robust earnings pushed positive sentiments. After the end of Tuesday session, Dow Jones ended 2.43 per cent higher whereas tech heavy Nasdaq went up 3.11 per cent. S&P 500 went 2.76 per cent northward while Small Cap 2000 recorded 3.48 per cent intraday gain on Tuesday session. But, European shares fell on Tuesday, hit by worries about a hawkish European Central Bank and slowing economic growth. The euro rose to its highest level in about two weeks after news reports that the European Central Bank (ECB) may consider raising interest rates on Thursday by 50 to 75 bps to counter worsening inflation. However, Asian shares were mixed Tuesday, as investors weighed oil prices, inflation worries and corporate earnings.

Nifty technical outlook

“The index continues its short term uptrend as the Nifty continues its ‘Higher Top Higher Bottom’ structure on lower time frame charts. Incase of any declines, the immediate support for Nifty will be seen around the hourly 20-EMA around 16,220. On the flipside, the near term upside for Nifty is seen around 16,550 to 16,650 range where we could see confluence of resistances,” said Ruchit Jain, Lead Research at 5paisa.com.

Nifty Bank outlook

“The important levels, which will act as crucial support for the index, are placed at price zone of 35150 and 35,300 while on the upside; key resistance levels are placed at 36,250 and 36,450 levels,” said Chinmay Barve, Head — Technical and Derivative Research at Profitmart Securities said.

Nifty Call Option data

“Maximum total Call open interest was seen at 16400, 16500 and 16600 strikes with total open interest of 107838, 115830 and 157323 contracts respectively. Maximum Call open interest addition was seen at 16400 and 16600 strikes which added 18874 and 44532 contracts respectively. Call unwinding was seen at 16100 and 16200 strikes which shed 12248 and 17729 contracts respectively,” Chinmay Barve of Profitmart Securities.

Nifty Put Option data

As per data shown by nseindia.com at 3.30 pm on 19 July, maximum total Put open interest was seen at 16300, 16200 and 16000 strikes with total open interest of 104268, 159321 and 125214 contracts respectively. Maximum Put open interest addition was seen at 16300 and 16200 strikes which added 64833 and 42686 contracts respectively. Put unwinding was seen at 16100 strike which shed 16057 contracts.

Nifty Bank Call Option data

“Maximum total Call open interest was seen at 35800, 36000 and 36500 strikes with total open interest of 54990, 106480 and 68614 contracts respectively. Maximum Call open interest addition was seen at 35800, 36000 and 36200 strikes which added 26638, 41366 and 16490 contracts respectively. Call unwinding was seen at 35400, 35300 and 35200 strikes which shed 15909, 17989 and 16607 contracts respectively,” said Chinmay Barve.

Nifty Bank Put Option data

As per data shown by nseindia.com at 3.30 pm on 19 July, Maximum total Put open interest was seen at 35500, 35300 and 35200 strikes with total open interest of 113513, 58644 and 71718 contracts respectively. Maximum Put open interest addition was seen at 35600, 35500 and 35400 strikes which added 42606, 91586 and 32584 contracts respectively. No major Put unwinding was seen at strikes ranging from 35000 to 36200 strikes.

FII DII data

Foreign institutional investors (FIIs) have net bought 976.40 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold 100.73 crore worth of shares on July 19, as per provisional data available on the NSE.

Stocks in F&O ban on 20th July 2022

The National Stock Exchange (NSE) has added Delta Corp stock under its F&O ban list for trade date 20th July 2022. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.

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