Equity benchmarks ended three days of gains to close modestly in the red on Monday, amid weak global cues and selling in IT stocks after TCS’ Q1 results. The rupee dropped to a fresh lifetime low against the US dollar further sapped risk appetite.
Stock market today: Things to know before opening bell
Global market cues
Global stock markets mostly fell as investors digested fresh Covid-19 restrictions in China and braced for a key US inflation report, while the dollar strengthened against other currencies.
Stocks in Asia were mostly lower on Tuesday as Japan led the regional decline, while Hong Kong futures were also in the red following the worst drop in US-traded Chinese shares since May.
SGX Nifty
SGX Nifty indicates a lower start to 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
“On the daily timeframe, the Nifty index has sustained above its near-term moving average. The momentum oscillator RSI maintains its bullish crossover. The short term trend is likely to remain positive as long as it holds above 16000. On the higher end, resistance is visible at 16300,” said Rupak De, Senior Technical Analyst at LKP Securities.
“The 5 days exponential moving average of the index has crossed and sustained above 13 and 26 days average which indicates that the short term trend is likely to remain up. Momentum indicators suggest that the buoyancy in the index is likely to continue in the very short term. Immediate support level for the Nifty is placed at 15950 – 16000 zones while on the upside; the index is likely to face strong resistance around 16480 and 16600 mark,” said Chinmay Barve, Head, Technical and Derivates Research at Profitmart Securities.
Nifty Call Option data
“As per data on 11 July, Maximum total Call open interest was seen at 16300, 16500 and 16600 strikes with total open interest of 91204, 100731 and 114469 respectively. Maximum Call open interest addition was seen at 16300, 16500 and 16600 strikes which added 24444, 22980 and 38270 contracts respectively. Call unwinding was seen at 16000 strike, which shed 2955 contracts,” said Barve.
Nifty Put option data
As per data shown at 3.30 pm on 11 July, Maximum total Put open interest was seen at 16200, 16100 and 16000 strikes with total open interest of 99320, 101875 and 110143 contracts respectively. Maximum Put open interest addition was seen at 16100, 16000 and 15950 strikes which added 46547, 20157 and 30825 contracts respectively.
Stock futures long build-up
Stocks like INTELLECT – OI up 24.36%, NAM-INDIA OI up 14.26% , COROMANDEL OI up 14.13%, EICHERMOT OI up 13.36%, ATUL OI up 12.86%, EXIDEIND OI up 11.51% and GRANULES OI up by 10.87% have witnessed long buildup in July 2022 series where stock prices rose with addition in open interest.
Stock futures short build-up
TCS OI up 20%, HCLTECH OI up 17%, BHARTIARTL OI up 12% and RAIN OI up 8.72% have witnessed short buildup in July 2022 series where stock price fell with addition in open interest.
FIIs/DIIs data
Foreign institutional investors (FIIs) have net sold ₹170.51 crore worth of shares, whereas domestic institutional investors (DIIs) have net sold ₹296.99 crore worth of shares on July 11, as per provisional data available on the NSE.
