Trade Setup: Top 15 things to know before market opens on June 7, 2022

Indian equity
benchmarks ended a volatile session with marginal losses on Monday as investors
remained cautious ahead of RBI’s policy decision on June 8. Indian markets made a gap down opening, as traders
were worried as continuing its heavy selling streak for the eighth consecutive
month, foreign investors pulled out nearly Rs 40,000 crore from the Indian
equity market in May amid fears of an aggressive rate hike by US Federal
Reserve that dented investor sentiments.

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

“Normally, such
patterns following a reasonable moves call for a reversal on either side. But
since this one comes amid rangebound moves, its predictive value could be
less,” he said.

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Indian Indices

Sensex fell 93.91 points or 0.17% to 55,675.32 and Nifty
was down by 14.75 points or 0.09% to 16,569.55 in the previous session. Sensex touched
a high and low of 56,832.28 and 55,295.74, respectively. There were 9 stocks
advancing against 21 stocks declining on the index. Nifty traded in a range of
16,610.95 and 16,444.55. There were 21 stocks advancing against 29 stocks
declining on the index.

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Broader Indices

The broader indices ended in red with the BSE Mid cap
index falling 0.15%, while Small cap index was down by 0.54%. On the sectoral front,
Metal was up by 0.72%, Oil & Gas was up by 0.50%, Energy was up by 0.41%,
Auto was up by 0.21% and Bankex was up by 0.15%, while Finance was down by
3.39%, Realty down by 0.87%, Consumer Disc down by 0.79%, Consumer Durables
down by 0.59% and Capital Goods down by 0.53% were the 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 1.14% to 20.20 on Monday.

SGX Nifty

The trends on SGX
Nifty indicate a negative opening for the index in India with an 18-points loss. The Nifty
futures were trading at 16,472.20  on the
Singaporean Exchange around 06:40 hours IST.

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Support and Resistance levels

The key support
level for the Nifty is placed at 16,472, followed by 16,375. If the index moves
up, the key resistance levels to watch out for are 16,639 and 16,708, according to pivot
charts.

US Markets

The S&P 500 rose 12.89 points, or 0.3%, to 4,121.43.

The Dow Jones Industrial Average rose 16.08 points, or less than 0.1%, to 32,915.78.

The Nasdaq rose 48.64 points, or 0.4%, to 12,061.37.

The Russell 2000 index of smaller companies rose 6.83 points, or 0.4%, to 1,889.89.

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Asian Markets

Asian markets ended mostly higher on Monday. The Shanghai Composite rose 1.28%, the Hang
Seng and The Nikkei rose 0.56%.

European Markets

European markets ended higher on Monday, Germany’s DAX was up by 1.34%, France’s CAC 40 was up by 0.98% and London’s FTSE 100 was up by 1.00%.

Major News Headlines

Alok
Kumar Chaudhary appointed as new SBI MD

The centre has approved the appointment of Alok Kumar
Choudhary, deputy managing director of State Bank of India as the managing
director for 2 years. Currently, he was in charge of the finance portfolio and
now will be in charge of corporate banking and information technology in his
new role at SBI. He will replace former MD Ashwani Bhatia who took charge as a
whole-time member of the Securities and Exchange Board of India (SEBI).

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Adani
Enterprises to set up data centre at Bengal Silicon Valley

Adani Enterprise has received the West Bengal
government’s approval to set up a hyper-scale data centre at Bengal Silicon
Valley in the New Town area on the outskirts of the city. West Bengal Industry
Minister Partha Chatterjee in a press conference on Monday said “the state
cabinet today gave the nod to the proposal by Adani Enterprises to set up a
100% hyper-scale data centre at Bengal Silicon Valley in New Town, Rajarhat.
The project will come up on 51.75 acres of land, which has been given on a
99-year lease,” as per the PTI report.

Tata
Motors signed deal to supply 10,000 Xpres-Ts

The company has signed an agreement with BluSmart
Mobility the country’s largest fully-electric rise-hailing service firm – for
delivering 10,000 Xpres-T electric vehicles (EVs), making it the biggest-ever
EV fleet order in India. These vehicles are an addition to the order for 3,500
Xpres-T EVs signed by both companies in October 2021.

NMDC
cuts prices of lump ore by Rs 1,100 per tonne, fines by Rs 1,000

The state-owned mineral producer has made a sharp reduction of Rs 1,100 per
tonne in the price of lump ore and Rs 1,000 in case of fines.

It has set the price for lump ore at Rs 4,400 per tonne,
and the price for fines at Rs 3,310 per tonne. These prices do not include
royalty, DMF, NMET, cess, forest permit fee and other taxes. The prices are
effective from June 5, 2022.

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Bulk Deal data

AJAY HARKISHANDAS
MEHTA sold 4,25,000 shares in Compuage
Infocom Limited at
Rs 26.04 per share on the NSE.

VISESH GUPTA sold 36,50,000 shares in Integra Essentia Limited at Rs 0.10 per share on the NSE.

TILOL CHAND CHHABRA
sold 14,62,059 shares in Hindustan Motors Limited at Rs 19.05 per share as per NSE.

HARSHIL PREMJIBHAI
KANANI sold 18,13,938 shares in Simplex Infrastructures at Rs 26.50 per share as per NSE.

NIRAJ RAJNIKANT
SHAH 15,00,000 shares in Supreme Engineering Limited at Rs 2.85 per share as per NSE.

DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 3,397.65 crore, while domestic institutional investors
(DIIs) bought shares worth
a net Rs 1,940 crore in the Indian equity
market on June 6, as per provisional data available on the NSE.

NSE F&O Ban

The National Stock Exchange has not put any stock under the F&O ban for June 7. 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.