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

In a tumultuous session on Tuesday, Indian equity indexes broke a four-day losing skid to close higher, powered by significant buying demand in Realty, IT, and TECK sectors. Key indexes got off to a shaky start, as traders remained wary of rating agency Icra’s projection that the protracted conflict between Ukraine and Russia will impose hefty input costs on domestic steelmakers.

The Nifty50 has formed a long bull candle on the daily chart to engulf the previous day’s doji pattern completely, suggesting a bullish reversal, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

“After sharp weakness in the last few sessions, the index has rebounded convincingly to show an upside bounce for the short term,” he said.

Indian Indices

Sensex rose 581.34 points or 1.10% to 53,424.09 and Nifty was up by 150.30 points or 0.95% to 16,013.45 in the previous session.  Sensex touched high and low of 53,484.26 and 52,260.82, respectively. There were 24 stocks advancing against 6 stocks declining on the index. Nifty traded in a range of 16,028.75 and 15,671.45. There were 37 stocks advancing against 13 stocks declining on the index.

Broader Indices

The broader indices ended in green with the BSE Midcap index rose 1.46%, while the Small cap index was up by 1.33%. The top gaining sectoral indices on the BSE were Realty up by 3.19%, IT up by 2.44%, TECK up by 2.33%, Healthcare up by 1.95% and Capital Goods up by 1.22%, while Metal down by 1.94%, Oil & Gas down by 0.98%, Energy down by 0.29% and Basic Materials down by 0.11% were the top losing indices on BSE.

Support and Resistance levels

The key support level for the Nifty is placed at 15,780, followed by 15,547. If the index moves up, the key resistance levels to watch out for are 16,138 and 16,262, according to pivot charts.

SGX Nifty

The trends on SGX Nifty indicate a negative opening for the index in India with a 32-points loss. The Nifty futures were trading at 15,963.20 on the Singaporean Exchange around 06:50 hours IST.

Asian Markets

Asian markets finished sharply lower yesterday with shares in China leading the region. The Shanghai Composite was down 5.39% while Japan’s Nikkei 225 was off 1.71% and Hong Kong’s Hang Seng was lower by 1.50%.

US Markets

The S&P 500 fell 30.39 points, or 0.7%, to 4,170.70.

The Dow Jones Industrial Average fell 184.74 points, or 0.6%, to 32,632.64.

The Nasdaq fell 35.41 points, or 0.3%, to 12,795.55.

The Russell 2000 index of smaller companies rose 11.68 points, or 0.6%, to 1,963.01.

European Markets

European markets finished mixed. The FTSE 100 gained 0.11%, while the CAC 40 led the DAX lower. They fell 6.51% and 0.02% respectively.

Dish TV declares AGM voting results, all three resolutions rejected

Satellite service provider Dish TV March 8 released the results of the voting conducted at the 33rd annual general meeting (AGM) held on December 30, 2021. During the AGM, three resolutions were put to a vote including the adoption of the audited standalone and consolidated financial statements and the report of the Board of Directors and Auditors, re-appointment of Ashok Mathai Kurien as director, and ratification of cost auditors’ remuneration for 2021-22. According to the exchange filing by the company, all the resolutions have failed to receive the necessary number of votes in favour under the remote e-voting and InstaPoll systems.

US bans Russian oil imports over Ukraine invasion: Joe Biden

US President Joe Biden on Tuesday announced a ban on US imports of Russian oil over Ukraine invasion. This is the Biden administration’s most far-reaching action yet to punish Russia for invading the European nation. “We are enforcing the most significant package of economic sanctions in history, and it’s causing significant damage to Russia’s economy,” Joe Biden said. “We’re moving forward with this ban understanding that many of our European allies and partners may not be in a position to join us,” he added. According to the US Energy Information Administration, the US imported close to 245 million barrels of crude oil and petroleum products from Russia last year.  Washington’s move follows pleas by Ukrainian President Volodymyr Zelenskyy to the United States and Western officials to cut off the imports, which had been a glaring omission in the sanctions that have been put in place on Moscow over the invasion of Ukraine. Energy exports have kept a steady stream of cash flowing to Moscow despite severe restrictions on its financial sector.

Credit Suisse downgrades India to ‘Underweight’ from ‘Overweight’

Credit Suisse reduced India’s rating to ‘Underweight’ from ‘Overweight’ owing to rising oil prices, according to CNBC-TV18. It referred to the cut as ‘tactical’. “We tactically cut India’s position to underweight from overweight and will look for opportunities to re-enter the Indian market,” Credit Suisse told the channel. “Our downgrade of India is tactical and largely based on higher oil prices. Oil hurts the current account and adds indefinite pressure besides increasing sensitivity to United States Federal Reserve rate hikes,” they said. It, however, added that it still liked “India’s positive EPS revisions and positioning in credit and property cycles”, further stating that it would use funds freed from India to raise China to ‘Overweight’ from ‘Market Weight’. The agency noted that in Asia, India is “most vulnerable to higher oil prices, along with the Philippines” and “rich valuations magnify the short term risks. “We will use the funds freed from India to raise China from Market Weight to Overweight,” it added.

RBI Governor launches UPI service for feature phones

Reserve Bank of India (RBI) Governor Shaktikanta Das on March 8 launched an instant payment system “UPI 123PAY” for feature phones. He also launched DigiSaathi, the 24×7 helpline for digital payments. The RBI governor said the new Unified Payments Interface (UPI) on feature phones will allow people in rural areas who cannot afford a smartphone to participate in UPI transactions. This would allow 40 crore feature phones users to access the payment service. “This current decade will witness a transformative shift in the digital payments ecosystem in the country,” Das said. The RBI has announced several measures in the last three years to push digital transactions, he added. Das also stressed the need to focus on cyber security. He said systems need to be prepared to handle such risks. UPI 123Pay will allow feature phone users to make almost all transactions except scan and pay. It does not require an internet connection for transactions. Feature phone users will now be able to undertake a host of transactions based on four technology alternatives which include calling an interactive voice response (IVR) number, app functionality in feature phones, missed call-based approach and also proximity sound-based payments, said the central bank. Customers will have to link their bank accounts with feature phones to use this service.

LME suspends nickle trading after unprecedented 250% spike

The London Metal Exchange (LME) suspended trading in its nickel market after an unusual price spike left brokers struggling to pay margin calls against unprofitable short positions, in a massive squeeze that embroiled the largest nickel producer as well as major Chinese bank. Nickel surged as high as 250% in two days to trade briefly above $100,000 a tonne early Tuesday. The largest move on the LME came as investors and industrial users who had sold the metal scrambled to buy the contracts back after prices initially surged on worries about supplies from Russia. Trading in the nickel market was suspended as trading got underway on Tuesday. The LME later said it would cancel all nickel transactions that had taken place earlier in the day. The LME raised margin requirements for nickel contracts by 12.5% to $2,250 a tonne, effective from the close of business on Tuesday.

Bulk Deal data

SMALLCAP WORLD FUND INC sold 6,10,132 shares in G R Infraprojects Limited at Rs 1,280.00 per share on the NSE.

SPECIE FINANCE PVT LTD bought 60,000 shares in Foce India Limited at Rs 259.97 per share on the NSE.

SETHI VINOD RAJINDRANATH sold 28,16,684 shares in Supreme Engineering Ltd at Rs 2.40 per share on the NSE.

DIDU INVESTMENTS PVT LTD bought 17,250 shares of N.B.I. Ind. Fin. Co. Ltd at Rs 2,155.00 per share on NSE.

ASHISH SHARADKUMAR NEMANI sold 1,00,000 shares of Vaishali Pharma Limited at Rs 57.00 per share on NSE.

ANITA AGGARWAL bought 74,400 shares in AVRO INDIA LIMITED at Rs 53.20 per share on the NSE.

ANUPAM NARAIN GUPTA sold 200,000 equity shares in PROFINC at Rs 117.95 per share on the BSE, the bulk deals data showed.

SANGEETA SEKSARIA bought 117,500 shares of RAWEDGE at Rs 43.00 per share on BSE.

DII and FII data

Foreign institutional investors (FIIs) sold shares worth a net Rs 8,142.60 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 6,489.59 crore in the Indian equity market on March 8, as per provisional data available on the NSE.

NSE F&O Ban

No stock or security has been put under the F&O ban for March 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.