Trade Setup: Top 14 things to know before market opens on July 5, 2022

Indian equity benchmarks
were helped by late buying to end near intraday high points with front line gauges
recapturing their crucial 52,300 (Sensex) and 15,800 (Nifty) levels as traders
opted to buy fundamentally strong but beaten down stocks after three days of continues
drubbing.

The Nifty50 has
formed a long bull candle on the daily chart, suggesting more upside ahead,
according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. The short-term trend
of the index continues to be positive with rangebound movement, he said.

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Indian Indices

Sensex rose 326.84 points or 0.62% to 53,234.77 and the
Nifty was up by 83.30 points or 0.53% to 15,835.35 in the previous session. Sensex
touched high and low of 53,301.99 and 52,674.81, respectively. There were 24
stocks advancing against 6 stock declining on the index. Nifty traded in a
range of 15,661.80 and 15,852.35. There were 36 stocks advancing against 14
stocks declining on the index.

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Broader Indices

The broader indices ended in green as the BSE Mid cap index
rose 0.82% and the Small cap index was down by 0.59%. On the sectoral front, FMCG
was up by 2.49%, Bankex was up by 1.08%, Capital Goods was up by 0.97%,
Consumer Durables was up by 0.82% and Industrials was up by 0.74%, while Metal
down by 1.49%, Energy down by 0.50%, Oil & Gas down by 0.46%, IT down by
0.42% and TECK down by 0.21% 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, fell 1.31%
to 20.97 on Monday.

SGX Nifty

The trends on SGX Nifty indicate
a positive opening for the index in India with a 59 points gain. The Nifty futures were trading
at 15,883.00 on the Singaporean Exchange
around 06:45 hours IST.

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Support and
Resistance levels

The
key support level for the Nifty is placed at 15,714, followed by 15,593. If the
index moves up, the key resistance levels to watch out for are 15,904 and
15,974, according to pivot charts.

US Markets

US stock market remained closed on
Monday for Independence Day.

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Asian Markets

Asian markets ended
mostly lower on Monday. The Nikkei 225 fell 0.80%, the Heng Seng fell 0.13%,
the KOSPI Composite fell 0.22% while the Shanghai Composite rose 0.53%.

European Markets

European markets
ended mostly higher on Monday, London’s FTSE 100 was up by 0.89%, France’s CAC
40 was up by 0.40%, while Germany’s DAX was down by 0.31%.

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Major News Headlines

Tata Steel Long Products acquires Neelachal Ispat Nigam for
Rs 12,100 crore

Tata Steel has acquired a 93.71% stake in Neelachal Ispat
Nigam (NINL) through its step-down subsidiary, Tata Steel Long Products. On
January 31, TSLP was declared the winning bidder for the one million tonnes
(mt) NINL, an asset owned by central and state public sector undertakings, in a
process run by the Department of Disinvestment & Public Asset Management
(DIPAM), for a consideration of Rs 12,100 crore. The transaction was completed
via the purchase of equity shares and non-convertible redeemable preference
shares.

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The transaction included subscription of over 484 million
equity shares aggregating to Rs 3,100 crore by TSLP, subscription of 0.01% or
456 million non-convertible redeemable preference shares aggregating to around
Rs 4,560.54 crore, and purchase of 694 million equity shares by TSLP from MMTC,
MECON, NMDC, Bharat Heavy Electricals, Industrial Promotion and Investment
Corporation of Odisha Ltd, and Odisha Mining Corporation Ltd, for the balance
consideration. Accordingly, NINL has become a subsidiary of TSLP and an
indirect subsidiary of Tata Steel, the company said.

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Vedanta aluminium output jumps 3% to 5.65 lakh tonnes in June
quarter  

The company’s alumina production in the first quarter of
fiscal 2023 at Lanjigarh refinery increased marginally to 4.85 lakh tonnes, up
1% year on year due to scheduled maintenance in April 2022, said in its BSE
filing. The cast metal aluminum production at the smelter rose by 3% year on
year to 5.65 lakh tonnes. Mined metal production increased 14% year on year to
2.52 lakh tonnes due to higher ore production across all the mines and
supported by better mill recovery. Total saleable production stood at 2,68,523
tonnes, lower by 7% year on year due to debottlenecking activities in blast
furnace-3 and gunning of blast furnace-2. Overall power sales increased to
3,577 million units, up 32% from the year-ago period.

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Bajaj Auto starts share buyback worth Rs 2,500 crore at Rs
4,600 per share

The Pune-based company commenced its Rs 2,500 share buyback
program on July 4. The buyback will be carried out at a price not exceeding Rs
4,600 per equity share and for an aggregate amount of up to Rs 2,500 crore,
representing 9.61% of the aggregate of the total paid-up share capital of the
company, it stated.

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Bulk Deal data

NAKSHATRA GARMENTS PRIVATE LIMITED bought 84,00,000 shares in KBC
Global Limited at Rs 3.52 per share as per NSE.

BHAVESH KIRTI MATHURIA bought 28,800 shares in Atal Realtech
Limited at Rs 143.71 per share on the NSE.

PANKAJ DHANJI CHHEDA HUF bought 60,000 shares in Globesecure
Technology Limited at Rs 121.46 per share on the NSE.

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DII and FII data

Foreign institutional
investors (FIIs) sold shares worth a net Rs 2,149.56 crore, while domestic
institutional investors (DIIs) bought shares worth a net Rs 1,688.39 crore in
the Indian equity market on July 4, as per provisional data available on the
NSE.

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NSE F&O Ban

No stock is under the
F&O ban for July 5. 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.