Trade Setup: Top 13 things to know before market opens on June 1, 2022

Indian equity benchmarks broke their 3-day winning streak
to settle lower in a highly volatile session on Tuesday, as investors were
eyeing GDP numbers for the fourth quarter of the previous fiscal year
(2021-22).

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Though, markets failed to hold on to recovery mode and fell sharply
in late afternoon deals, as some pessimism remained among traders with private
reports showing that soaring prices and the subsequent hit to consumer spending
and investments are likely to further dampen India’s economy, as the central
bank faces a finely balanced struggle to tame inflation via rate hikes without
hurting economic growth.

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The Nifty50 has formed a Doji type candle on the daily
chart, suggesting a temporary halt in upside momentum, according to Nagaraj
Shetti, Technical Research Analyst at HDFC Securities. The formation of higher
tops and higher bottoms is intact on the daily timeframe, which indicates the
possibility of another minor higher bottom formation in the next few sessions,
he said.

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Indian Indices

Sensex fell 359.03 points or 0.64% to 55,566.41 and Nifty
was up by 76.85 points or 0.46% to 16,584.55 in the previous session. Sensex
touched a high and low of 54,925.62 and 55,369.14, respectively. There were 14
stocks advancing against 16 stocks declining on the index. Nifty traded in a
range of 16,690.75 and 16,521.90. There were 27 stocks advancing against 21
stocks declining on the index.

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Broader Indices

The broader indices ended in green with the BSE Midcap
index surging 0.49%, while the Small cap index was up by 0.68%. On the sectoral
front, Realty was up by 2.11%, Metal up by 1.78%, Consumer Discretionary up by
0.88%, Auto up by 0.87% and Telecom up by 0.84% while, Power down by 2.17%,
Utilities down by 1.95%, Bankex down by 1.06%, Oil & Gas down by 0.80%,
Finance down by 0.80% were the top losing indices on BSE.

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India VIX Index

Nifty or India VIX, a gauge of the market’s expectation
of volatility over the near term, rose 2.49% to 20.48 on Tuesday.

SGX Nifty

The trends on SGX Nifty indicate a positive opening for the index in India with a 95-points gain. The Nifty futures were trading at 16,528.20 on the Singaporean Exchange around 07:30 hours IST.

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Support and Resistance levels

The key support level for the Nifty is placed at 16,507,
followed by 16,430. If the index moves up, the key resistance levels to watch
out for are 16,676 and 16,768, according to pivot charts.

US Markets

The S&P 500 fell 26.09 points, or 0.6%, to 4,132.15.

The Dow Jones Industrial Average fell 222.84 points, or 0.7%, to 32,990.12.

The Nasdaq fell 49.74 points, or 0.4%, to 12,081.39.

The Russell 2000 index of smaller companies fell 23.85 points, or 1.3%, to 1,864.04.

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Asian Markets

Asian markets finished mostly higher on Tuesday. The
Shanghai Composite rose 1.19% and the Hang Seng rose 1.38%. The Nikkei 225 fell
0.33%.

European Markets

European markets were lower on Tuesday, Germany’s DAX was
down by 1.29% while France’s CAC 40 was down by 1.43% and London’s FTSE 100 was
up by 0.10%.

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Major News Headlines

India’s real GDP growth stands at 8.7% in FY2022

India’s real GDP rose by 8.7% in FY21-22, compared with a
contraction of 6.6% in FY21, official data shows. In January to March quarter
of fiscal 2022, India’s GDP growth stood at 4.1%, lower than the 5.4% growth
registered in the December quarter, according to data released by National
Statistical Office (NSO) today. The agriculture, Forestry and Fishing sector
grew by 3% on year basis, the Mining and quarrying sector grew 11.5%, the
manufacturing sector grew 9.9% and Electricity, gas, water supply & other
utility services sector grew 7.5% on year in the financial year that ended
March 2022.

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Power Grid Corporation acquires MTL for over Rs 9 crore

State-owned Power Grid Corporation of India Limited
(PGCIL) on May 31 said it has acquired Mohanlalganj Transmission Limited in
Uttar Pradesh for over Rs 9 crore. Incorporate in June 2021, Mohanlalganj
Transmission Limited (MTL) is the project SPV (special purpose vehicle) to
establish an intra-state transmission system, PGCIL said in a BSE filing.
“…it is informed that PGCIL pursuant to its selection as the successful
bidder under tariff-based competitive bidding, has on May 30, 2022, acquired
MTL,” it added. The company was acquired for an aggregate value of about Rs 9.11
crore, including 10,000 equity shares along with assets and liabilities of the
company as of the acquisition date.

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Bulk Deal data

INTEGRATED CORE STRATEGIES (ASIA) PTE LTD sold 18,88,784
shares in AU Small Finance Bank Limited at Rs 1,250.23 per share on the NSE.

INDUSIND BANK LTD CLIENT A/C sold 20,47,243 shares in
Birla Tyres Limited at Rs 7.40 per share on the NSE.

INTEGRATED CORE STRATEGIES (ASIA) PTE LTD bought
17,86,400 shares in HDFC AMC Limited at Rs 1,898.90 per share on the NSE.

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BNP PARIBAS ARBITRAGE sold 52,85,560 shares in Jindal
Steel & Power at Rs 379.98 per share as per NSE.

PREETI AGGARWAL sold 93,320 shares in Kshitij Polyline
Limited at Rs 30.75 per share as per NSE.

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DII and FII data

Foreign institutional investors (FIIs) sold shares worth
a net Rs 1,003.56 crore, while domestic institutional investors (DIIs) bought
shares worth a net Rs 1,845.15 crore in the Indian equity market on May 31, as
per provisional data available on the NSE.

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NSE F&O Ban

The National Stock Exchange has not put any stock under
the F&O ban for June 1. Securities in the ban period under the F&O
segment include companies in which the security has crossed 95% of the
market-wide position limit.