Trade Setup: Top 15 things to know before market opens on April 11, 2022

Indian equity indexes closed the day higher on Friday, snapping a three-day losing skid, powered by robust buying support in index heavyweights ITC, Mahindra & Mahindra, and Dr Reddy’s Lab. 

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Following a positive start, key indices swung between losses and gains as traders became concerned after the finance ministry stated that the current elevated level of the international crude price if it persists for a long time, may obstruct India’s attainment of a real economic growth rate of 8% or higher in FY23, as well as pose upside inflation risks. 

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In the afternoon, however, markets recovered quickly when the monetary policy committee (MPC) opted to keep the repo rate at 4% and the reverse repo rate at 3.35%.

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The Nifty50 has formed a bullish outside bar on the daily chart, and a candle resembling a Doji pattern on the weekly timeframe suggests a loss of momentum, according to Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas.

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“The daily momentum indicator is showing signs of fatigue. The overall structure suggests a short-term consolidation in the range of 17,500-18,000 is on the cards over the next couple of weeks,” he said. 

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Indian Indices

Sensex rose 412.23 points or 0.70% to 59,447.18 and Nifty was up by 144.80 points or 0.82% to 17,784.35 in the previous session. Sensex touched a high and low of 59,654.44 and 58,876.36, respectively. There were 22 stocks advancing against 8 stocks declining on the index. Nifty traded in a range of 17,842.75 and 17,600.55. There were 42 stocks advancing against 8 stocks declining on the index.

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Broader Indices

The broader indices ended in green with the BSE Midcap index rising 0.93%, while the Small cap index was up by 0.99%. The gaining sectoral indices on the BSE were Power up by 1.99%, Metal up by 1.96%, FMCG up by 1.93%, Basic Materials up by 1.91% and Utilities up by 1.81%, while IT down by 0.01% was the lone losing index 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 6.90% to 17.69 on Friday.

SGX Nifty

The trends on SGX Nifty indicate a negative opening for the index in India with a 29-points loss. The Nifty futures were trading at 17,844.50 on the Singaporean Exchange around 06:40 hours IST.

Support and Resistance levels

The key support level for the Nifty is placed at 17,642, followed by 17,500. If the index moves up, the key resistance levels to watch out for are 17,884 and 17,985, according to pivot charts.

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US Markets

The S&P 500 fell 11.93 points, or 0.3%, to 4,488.28.

The Dow Jones Industrial Average rose 137.55 points, or 0.4%, to 34,721.12.

The Nasdaq fell 186.30 points, or 1.3%, to 13,711.

The Russell 2000 index of smaller companies fell 15.24 points, or 0.8%, to 1,994.56.

Asian Markets

Asian markets finished higher on Friday with shares in China leading the region. The Shanghai Composite was up 0.47% while Japan’s Nikkei 225 was up 0.36% and Hong Kong’s Hang Seng was up 0.17%.

European Markets

European markets closed sharply higher on Friday with shares in London leading the region. The FTSE 100 was up 1.56% while Germany’s DAX was up 1.46% and France’s CAC 40 was up 1.34%.

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Major News Headlines

FPIs have been net purchasers in April, investing Rs 7,707 crore in shares

Foreign investors have turned net buyers in April so far by infusing Rs 7,707 crore in Indian equities as a correction in markets provided them with a good buying opportunity. The latest inflow comes following massive net outflows to the tune of Rs 1.48 lakh crore from equities in the last six months from October 2021 to March 2022. Apart from equities, FPIs put in Rs 1,403 crore in the debt markets during the period under review, after pulling out a net Rs 8,705 crore in the last two months (February and March). In the entire FY 22, FPIs withdrew a net Rs 1.4 lakh crore from equities. Despite the pullout, the NSE Nifty rose 19 per cent in the same period, on the back of support from domestic institutions and retail investors.

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IndiGo is now the world’s sixth-largest airline in terms of passengers: OAG

IndiGo has emerged as the world’s sixth-largest carrier by passenger volume for March, according to the UK-based Official Airline Guide (OAG). The airline carried more than 2.02 million passengers in the month, the most by any Asian carrier, according to statistics collected till March 28. IndiGo was also named the world’s fastest-growing airline by OAG, with a 41.3% growth in frequency in March. The airline also ranked among the top 10 airlines in the world by seat capacity for March. The OAG data includes airport and route capacity as well as a list of the 20 largest worldwide airlines by flights based on monthly data. IndiGo is the only airline from India to appear on this list.

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Anis Chenchah has been named CEO of Wipro, APME

Wipro on Friday announced the appointment of Anis Chenchah as a member of its executive board and Chief Executive Officer, APMEA (Asia Pacific, India, Middle East and Africa). Chenchah comes with over two decades of experience in consulting, IT and business process services. In a statement, Wipro said it has appointed Anis Chenchah as CEO, APMEA. Chenchah also joins Wipro’s executive board, it added. Prior to this, he worked with Capgemini as Global CEO of its Business Services and a member of the Group Executive Committee. Earlier, Chenchah held various leadership roles in Capgemini Financial Services across Europe and the Middle East. The company said that N S Bala, who has been the CEO of the APMEA Strategic Market Unit for the past year, has decided to move back to the US for personal reasons.

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Ruchi Soya pays back the whole Rs 2,925 crore debt

Ruchi Soya on Friday said it has repaid Rs 2,925 crore loans to banks and has become a debt-free company. Baba Ramdev’s Patanjali Ayurved-led Ruchi Soya has recently raised Rs 4,300 crore through its follow-on public offer, and part of the proceeds has been utilised to repay the debt. Acharya Balkrishna, MD of Patanjali Ayurved Ltd, tweeted that Ruchi Soya has become debt-free. In its draft red herring prospectus, the company had mentioned that it would repay a loan of around Rs 1,950 crore to the lenders, a company spokesperson said. However, the company has decided to repay the entire debt amount of Rs 2,925 crore to its lenders. The money was paid to a consortium of bank-led by the State Bank of India. The other banks in the consortium are Punjab National Bank, Union Bank of India, Syndicate Bank and Allahabad Bank. In 2019, Patanjali acquired Ruchi Soya for Rs 4,350 crore through an insolvency process.

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Bulk Deal data

SOCIETE GENERALE bought 19,081,469 shares in Bandhan Bank at Rs 306.55 per share while HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED sold 49,632,349 at Rs 306.61 per share on the BSE.

MANISH VERMA sold 1,10,240 shares in Agro Phos India Limited at Rs 31.81 per share on the NSE.

RONIT SHAH sold 1,75,000 shares in AMD Industries Limited at Rs 64.67 per share on the NSE.

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PRITA BRIJESH PAREKH bought 80,000 shares in Bang Overseas Limited at Rs 43.98 per share on the NSE.

ATUL UMAKANT REGE bought 1,71,000 shares in Empyrean Cashews Limited at Rs 59.00 per share on the NSE.

BANSAL KISHORCHAND GULSHAN sold 2,34,000 shares of Parin Furniture Limited at Rs 94.50 per share on NSE.

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PURPLE ENTERTAINMENT LIMITED sold 2,07,583 shares in Uma Exports Limited at Rs 83.75 per share on the NSE.

OSWAL INFRASTRUCTURE LIMITED sold 10,86,159 shares in Uttam Galva Steels Limited at Rs 5.34 per share on the NSE.

ASHISH SHARADKUMAR NEMANI bought 2,90,000 shares of Vaishali Pharma Limited at Rs 86.00 per share on NSE.

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DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 575.04 crore, while domestic institutional investors (DIIs) offloaded shares worth a net Rs 16.51 crore in the Indian equity market on April 8, as per provisional data available on the NSE.

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NSE F&O Ban

RBL Bank is under the F&O ban for April 11. 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.