Trade Setup: Top 15 things to know before market opens on April 21, 2022

With significant buying support in the Auto, Energy, and Oil & Gas sectors, Indian market indices closed the day up by over a per cent, snapping a five-day losing streak. The benchmarks were also boosted by a generally bullish trend in global stocks. 

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Markets began the day on a positive note and remained so throughout the day, as traders took faith from Finance Minister Nirmala Sitharaman’s assurance that India would post robust economic growth this decade, describing the Indian economy’s recovery from the COVID-19 pandemic as distinct and pronounced.

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The Nifty50 has formed a reasonable positive candle on the daily chart with minor upper and lower shadows, hinting at an inside bar-type pattern, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

This raises hopes for a pullback rally in the market, he said.

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Indian Indices

Sensex rose 574.35 points or 1.02% to 57,037.50 and Nifty was up by 177.90 points or 1.05% to 17,136.55 in the previous session. Sensex touched a high and low of 57,216.51 and 56,521.33, respectively. There were 20 stocks advancing against 10 stocks declining on the index. Nifty traded in a range of 17,186.90 and 16,978.95. There were 38 stocks advancing against 12 stocks declining on the index.

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Broader Indices

The broader indices ended in green with the BSE Midcap index rising 0.45%, while the Small cap index was up by 0.36%. The top gaining sectoral indices on the BSE were Auto up by 2.21%, Energy up by 2.19%, Oil & Gas up by 1.85%, TECK up by 1.45% and Telecom up by 1.40%, while Metal down by 0.41%, Utilities down by 0.18%, Bankex down by 0.17%, Capital Goods down by 0.15% and Power-down by 0.08% 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 5.58% to 18.67 on Wednesday.

SGX Nifty

The trends on SGX Nifty indicate a positive opening for the index in India with a 15-points gain. The Nifty futures were trading at 17,230.50 on the Singaporean Exchange around 06:40 hours IST.

Support and Resistance levels

The key support level for the Nifty is placed at 17,015, followed by 16,893. If the index moves up, the key resistance levels to watch out for are 17,223 and 17,309, according to pivot charts.

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US Markets

The S&P 500 fell 2.76 points, or 0.1%, to 4,459.45.

The Dow Jones Industrial Average rose 249.59 points, or 0.7%, to 35,160.79.

The Nasdaq fell 166.59 points, or 1.2%, to 13,453.07.

The Russell 2000 index of smaller companies rose 7.42 points, or 0.4%, to 2,038.19.

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Asian Markets

Asian markets finished mixed on Wednesday. The Nikkei 225 gained 0.86%, while the Shanghai Composite led the Hang Seng lower. They fell 1.35% and 0.40% respectively.

European Markets

European markets finished broadly higher yesterday with shares in Germany leading the region. The DAX was up 1.47% while France’s CAC 40 was up 1.38% and London’s FTSE 100 was up 0.37%.

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Major News Headlines

Tata Steel to stop doing business with Russia amid ongoing war with Ukraine

Tata Steel will stop doing business with Russia amid the ongoing conflict with Ukraine, the company said on Wednesday. In a statement, a company spokesperson said “Tata Steel does not have any operations or employees in Russia. We have taken a conscious decision to stop doing business with Russia”. In order to ensure business continuity, Tata Steel’s all manufacturing units in India, the United Kingdom and the Netherlands have secured alternative supplies of raw materials to end their dependence on Russia, the company said. The company imports coal from Russia for its steelmaking process. India’s largest steelmaker, Tata Steel is among only a handful of Indian companies that have stopped business with Russia. The development comes even after India abstains from condemning the Russian invasion of Ukraine and has not imposed any sanctions on Moscow.

Nicomac Machinery to sell 1.5% stake in Gland Pharma on April 21

Nicomac Machinery will sell a 1.5% stake in Gland Pharma via block deals on April 21. CNBC TV18 reported, that the investor is selling around 2.45 million shares in the company, which accounts for 1.5% of the total outstanding shares. The floor price has been fixed at Rs 3,118 apiece. This marks a discount of around 5%, as compared to the price of Gland Pharma shares at the market closing hours on April 20. According to the CNBC TV18 report, “there is an option to upsize the deal”. In addition, the terms include a 60-day lockup on the seller. Citigroup is a joint bookrunner for the block deal, the report added.

SEBI simplifies payment process via UPI for IPO allotment

Securities Exchange Board of India (SEBI) on April 20 streamlined the Unified Payments Interface (UPI) system for shares applied for and allotted during an initial public offering (IPO). The market regulator also devised a new reporting format for capturing the data of all ASBA (application supported by block amount) applications unblocked by self-certified syndicate banks (SCSBs) and their corresponding date of actual unblock, reported PTI. In a circular SEBI said that the new format has been introduced after reviewing the performance of SCSBs on timely unblocking of application amounts and feedback received from market intermediaries. SCSBs will have to submit an application to the merchant bankers with a copy to the Registrar to the Issue in the prescribed format to claim the processing fee.

India’s crude oil production fell 2.67% to 29.69 million tonnes in FY22

India’s crude oil production declined 2.67% in the financial year ending March 31, 2022, as state-owned ONGC produced less than the target, but natural gas output increased helped by KG production by Reliance-BP. Crude oil production stood at 29.69 million tonnes in fiscal 2021-22, down 2.63% from the 30.5 million tonnes production in fiscal 2020-21. Total production fell 11.67% short of the target of 33.61 million tonnes, according to official data released by the oil ministry. India’s crude oil production is declining over the past few years. From 35.7 million tonnes in 2017-18, it fell to 34.2 million tonnes in the next year and 32.2 in 2019-20 and 30.5 million tonnes in 2020-21. The decline in production comes at a time when global oil prices are at their highest levels in decades amid the ongoing Russia-Ukraine war.

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Bulk Deal data

SAINT CAPITAL FUND bought 5,25,000 shares in BLS Intl Servs Limited at Rs 340.00 per share on the NSE.

BANYAN TREE GROWTH CAPITAL L.L.C. sell 19,75,631 shares in HBL Power Systems Limited at Rs 65.25 per share on the NSE.

PREMIER INVESTMENT FUND LIMITED sold 8,83,034 shares in Manali Petrochemicals Limited at Rs 141.04 per share on the NSE. 

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ERISKA INVESTMENT FUND LTD bought 1,00,000 shares in Rama Steel Tubes Limited at Rs 430.00 per share on the NSE.

PJS SECURITIES LLP sold 42,55,543 shares in Supreme Engineering Limited at Rs 3.50 per share on the NSE.

ANIL VISHANJI DEDHIA bought 1,40,000 shares in Vaishali Pharma Limited at Rs 107.63 per share on the NSE. 

PREETI JAIN bought 4,00,000 shares in Vaxtex Cotfab Limited at Rs 21.50 per share on the NSE.

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DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 3,009.26 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 2,645.82 crore in the Indian equity market on April 20, as per provisional data available on the NSE.

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NSE F&O Ban

Tata Power is under the F&O ban for April 21. 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.