Trade Setup: Top 15 things to know before market opens on June 2, 2022

Indian equity benchmarks were volatile and settled lower for the second
consecutive session on Wednesday, amid rising geopolitical tensions in Europe.
Moreover, rising bond yields in the debt market also tampered with market sentiment.
Benchmark indices made a cautious start, as traders were concerned with the
government data showing that India’s economic growth hit a four-quarter low of
4.1%, partly driven by the base effect. The growth was 20.1%, 8.4%, and 5.4%, in
the first, second and third quarters, respectively.

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The Nifty50 has
formed a small negative candle on the daily chart with upper and lower shadows,
suggesting high volatility, according to Nagaraj Shetti, Technical Research
Analyst at HDFC Securities.

However, the predictive value of this pattern could be less given its
placement within a range, he said.

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Indian Indices

Sensex fell 185.254 points or 0.33% to 55,381.17 and
Nifty was down by 61.80 points or 0.37% to 16,522.75 in the previous session. Sensex
touched a high and low of 55,791.49 and 55,091.43, respectively. There were 10
stocks advancing against 20 stocks declining on the index. Nifty traded in a
range of 16,649.20 and 16,438.35. There were 19 stocks advancing against 31
stocks declining on the index.

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Broader Indices

The
broader indices ended mixed with the BSE Midcap index falling 0.10%, while the Small cap index was up by 0.62%. On the sectoral front, Capital Goods was up by
0.75%, Industrials up by 0.70%, Metal up by 0.46%, Bankex up by 0.44% and PSU
up by 0.38%, while Power down by 1.70%, Utilities down by 1.51%, TECK down by
1.18%, Healthcare down by 1.16% and Realty down by 1.15% 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 1.79% to 20.84 on Wednesday.

SGX
Nifty

The trends on SGX Nifty indicate a flat opening for the index in India with a 1-points gain. The Nifty futures were trading at 16,432.80 on the Singaporean Exchange around 06:50 hours IST.

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Support and Resistance levels

The key support level for the Nifty is placed at 16,425,
followed by 16,327. If the index moves up, the key resistance levels to watch
out for are 16,635 and 16,747, according to pivot charts.

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US
Markets

The S&P 500 fell 30.92 points, or 0.7%, to 4,101.23.

The Dow Jones Industrial Average fell 176.89 points, or 0.5%, to 32,813.23.

The Nasdaq fell 86.93 points, or 0.7%, to 11,994.46.

The Russell 2000 index of smaller companies fell 9.22 points, or 0.5%, to 1,854.82.

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Asian Markets

Asian markets finished mostly lower on Wednesday. The Shanghai
Composite fell 0.13% and the Hang Seng fell 0.56%. The Nikkei 225 gained 0.65%.

European Markets

European markets were lower on Wednesday following weakness in
Wall Street overnight as investors reacted to hawkish comments from a Federal
Reserve official, while ongoing global concerns about inflation, aggressive
policy tightening and surging energy prices also weighed on market sentiments.
Germany’s DAX was down by 0.33%, France’s CAC 40 was down by 0.77% and London’s
FTSE 100 was down by 0.98%.

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Major News Headlines

Reliance
Industries signs JV to acquire 40% stake in toy maker Plastic Legno

Reliance
Brands and Plastic Legno SPA have formed a joint venture (JV) through which
Reliance Brands will acquire a 40% stake in Plastic Legno SPA’s toy
manufacturing business in India. Plastic Legno SPA is owned by the Sunino group
that has more than 25 years of experience in toy production in Europe. The
acquisition will bring in vertical integration for Reliance Brands’ toy
business and help diversify the supply chain with a long-term strategic
interest in building toy manufacturing in India.

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Welspun
Enterprises receives order worth Rs 4,636 crore from BMC

Welspun
Enterprises Limited (WEL) has received its single-largest order of Rs 4,636
crore from civic body Brihanmumbai Municipal Corporation (BMC) for the Dharavi
Wastewater Treatment Facility. Under this project, a joint venture led by the
company will design, build, operate and maintain the Dharavi Wastewater
Treatment Facility including the Tertiary treatment facility under Mumbai
Sewage Disposal Project, Stage II (Priority Works), the company said in a
statement.

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Bata
India promoter sells 2.56% stake, shares worth Rs 613 crore

BATA
(BN) BV, the promoter of Bata India, divested a 2.56% stake of the footwear
company for nearly Rs 613 crore through open market transactions. The shares
were bought by some domestic mutual funds (MFs), foreign investors and an
insurance company. According to the data, the promoter offloaded a total of
32.95 lakh shares, amounting to a 2.56% stake in the company. The shares were
sold at an average price of Rs 1,860 per share, aggregating the transaction
size to Rs 612.87 crore.

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Hero
MotoCorp reports 165% rise in sales in May at 4,18,633 units

The
country’s largest two-wheeler maker Hero MotoCorp reported total sales of
4,86,704 units in May 2022. The company had sold 4,18,633 units in April 2022
and 1,83,044 units in May 2021 when sales were impacted due to the second wave
of COVID-19. Domestic sales stood at 4,66,466 units in May. The company had
dispatched 1,59,561 units in the domestic market in May 2021.

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Bulk Deal data

TVISHA CORPORATE ADVISORS LLP bought 2,96,000 shares in ASL
Industries Limited at Rs 32.70 per share on the NSE.

PREETI AGGARWAL sold 65,324 shares in Kshitij Polyline Limited
at Rs 29.85 per share on the NSE.

LITEX TRADERS LLP bought 3,75,000 shares in North East Carry
Corp Limited at Rs 28.90 per share as per NSE.

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AASIA EXPORTS sold 11,00,000 shares in NXTDIGITAL Limited at Rs
380.00 per share as per NSE.

SAURABH TRIPATHI sold 38,000 shares in Swaraj Suiting Limited at
Rs 54.32 per share as per NSE.

PREETI JAIN sold 2,74,700 shares in Vaxtax Cotfab Limited at Rs
25.70 per share as per NSE.

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DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net
Rs 1,930.16 crore, while domestic institutional investors (DIIs) bought shares
worth a net Rs 984.11 crore in the Indian equity market on June 1, 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 2. 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.