Trade Setup: Top 15 things to know before market opens on June 9, 2022

Extending their
losing streak for the fourth straight day, Indian equity benchmarks ended Wednesday’s trade in red terrain with frontline indexes ending below their
crucial 54,900 (Sensex) and 16,400 (Nifty) levels. The Reserve Bank of India’s
(RBI) Monetary Policy Committee has raised Repo Rate by 50 basis points (bps)
to 4.90% in its June bi-monthly meeting. Real GDP growth for FY 2022-23 is
retained at 7.2%.

Also Read | Explained: Impact of RBI’s repo rate hike on deposits, loans

The Nifty50 has
formed a reasonable negative candle on the daily chart, suggesting more of
choppy waters ahead with a negative bias, according to Nagaraj Shetti,
Technical Research Analyst at HDFC Securities.

“The market
failed to sustain momentum after a swift intraday recovery following RBI
announcements… The positive pattern of higher tops and higher bottoms is
intact on the daily timeframe, and the current weakness could be a part of a
new higher bottom formation,” he said.

Also Read | How inflation affects RBI’s interest rate policy

Indian Indices

Sensex fell 215.85 points or 0.39% to 54,892.49 and Nifty
was down by 60.10 points or 0.37% to 16,356.25 in the previous session. Sensex touched
a high and low of 55,423.97 and 54,683.30, respectively. There were 13 stocks
advancing against 17 stocks declining on the index. Nifty traded in a range of
16,293.35 and 16,514.30. There were 22 stocks advancing against 28 stocks
declining on the index.

Also Read | RBI MPC meet: Key points from Governor Shaktikanta Das’ press conference

Broader Indices

The broader indices ended in red with the BSE Mid cap
index down by 0.15%, while the Small cap index was down by 0.33%. On the
sectoral front, Realty was up by 1.88%, Metal up by 0.52%, PSU up by 0.45%, IT
up by 0.20% and Healthcare up by 0.11%, while Telecom down by 1.62%, FMCG down
by 0.95%, Energy down by 0.87%, Oil & Gas down by 0.69% and Industrials
down by 0.49% were the top losing indices on BSE.

India VIX Index

Nifty or India VIX, a gauge of the market’s expectation of volatility over the near term, fell 2.88% to 19.84 on Wednesday.

Also Read | Why interest rates are being hiked globally?

SGX Nifty

The trends on SGX Nifty indicate a flat opening for the
index in India with a 3 points loss. The Nifty futures were trading at 16,301.00 on the Singaporean Exchange around 06:50 hours
IST.

Support and Resistance levels

The key support
level for the Nifty is placed at 16,262, followed by 16,167. If the index moves
up, the key resistance levels to watch out for are 16,483 and 16,609, according to pivot
charts.

Also Read | Adani Group, Apollo in discussions to acquire majority stake in Metropolis

US Markets

The S&P 500 fell 44.91 points, or 1.1%, to 4,115.77.

The Dow Jones Industrial Average fell 269.24 points, or 0.8%, to 32,910.90.

The Nasdaq fell 88.96 points, or 0.7%, to 12,086.27.

The Russell 2000 index of smaller companies fell 28.56 points, or 1.5%, to 1,891.01.

Asian Markets

Asian markets ended mostly higher on Wednesday. The Shanghai Composite rose 0.68%, the Nikkei rose 1.04% and the Hang Seng rose 2.24%.

Also Read | Lawrence Bacow, Harvard University president, to step down next year

European Markets

European markets ended lower on Wednesday, Germany’s DAX was down by 0.76%, France’s CAC 40
was down by 0.80% and London’s FTSE 100 was down by 0.07%.

Major News Headlines

RBI MPC meet: Central bank hikes policy repo rate by 50 basis
points to 4.90%

RBI Governor
Shaktikanta Das on June 8 announced that the central bank has raised the repo
rate, at which banks borrow from the central bank, by 50 bps to 4.90%. The
monetary policy committee’s decision was unanimous and it has decided to keep
the stance “withdrawal from accommodative”.

Consequently, the
standing deposit facility (SDF) rate is adjusted to 4.65% and the marginal
standing facility (MSF) rate and the Bank Rate to 5.15%. These decisions are in
accordance with the objective of achieving the medium-term target for consumer
price index (CPI) inflation of 4% with a margin of 2% on either side, while
supporting growth.

Also Read | What role could Liz Cheney play at the Jan 6 hearing

BPCL winds up data room after government puts off
privatisation

State-owned Bharat Petroleum Corporation Limited (BPCL)
has discontinued all activities related to the disinvestment of the company
after the government dropped plans to privatise the company for now. In a stock
exchange filing, the company said the government has through a letter dated
June 3, 2022, called off the present tender to sell its entire 53% stake in the
company. “Accordingly, all the activities in connection with the disinvestment
including the data room are being discontinued,” the firm said.

Also Read | Shabaash Mithu: 10 records held by India legend Mithali Raj

Tata Power Solar commissions 450 MW power plant in
Rajasthan

Tata Power Solar Systems Limited has commissioned a
450-megawatt solar plant for Brookfield Renewable India in Rajasthan. The
installation entails a setup of over 800,000 modules and was completed within a
record seven months timeframe. The project would produce over 800-gigawatt
hours (GWh) of clean energy annually and help avoid up to 600,000 tons of
annual carbon dioxide emissions.

Also Read | Al-Qaeda threatens suicide bomb attacks over sacked BJP leaders’ remarks on Prophet

Wipro wins Petrobras deal with ServiceNow

Wipro along with ServiceNow announced that they will help
Petrobras, the largest publicly traded company in Brazil, to advance its
digital journey. The project aims to raise the level of service for internal
users and reduce costs by modernising and aligning IT infrastructure processes
with the business through a modern cloud solution focused on automation and
integration. The project scope is related to maintaining IT assets, systems
updates, and digitizing processes. Petrobras is one of the largest oil, natural
gas and derivatives exploration, production and distribution companies in the
world.

Also Read | Explained: How Alabama law criminalised gender-affirming medicines for trans youth

Bulk Deal data

VISESH GUPTA sold
51,99,172 shares in Integra Essentia Limited at Rs 0.10 per share on the
NSE.

GAURAV JAIN sold 3,16,946 shares in Debock Industries Limited at Rs 50.76 per share on the NSE.

IDBI TRUSTEESHIP
SERVICES LTD sold 186,22,100 shares in Future Retail Limited at Rs 7.35 per share as per NSE.

ONKAR NATH AGRAWAL
sold 1,50,000 shares in Salasar
Techno Engg Limited at Rs 247.00 per share as per
NSE.

NIRAJ RAJNIKANT
SHAH bought 50,00,000 shares in Supreme Engineering Limited at Rs 3.00 per share as per NSE.

Also Read | How World Bank’s additional $1.5 billion aid help Ukraine amid Russian invasion

DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 2,484.25 crore, while domestic institutional investors
(DIIs) bought shares worth a
net Rs 1,904.33 crore in the Indian equity market on June 8, as per provisional
data available on the NSE.

NSE F&O Ban

Delta Corp has been put stock under the F&O ban for June 9. 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.