Trade Setup: Top 14 things to know before market opens on August 4, 2022
- Sensex rose 214.17 points, 0.37%, to 58,350.53 while the Nifty was up by 42.70 points, 0.25%, to 17,388.15
- Nifty or India VIX, fell 0.43% to 18.45 on Wednesday
- Nasdaq Composite rose 319.40 points or 2.59% to 12,668.16
In volatile trading session, Indian equity benchmarks erased initial losses and ended in green terrain on Wednesday, amid continuous foreign fund inflows and a largely positive trend in global markets.
The Nifty Bank needs to take out 38,200 decisively for the continuation of an uptrend towards the 38,500-38,700 zone, said Kunal Shah, Senior Technical Analyst at LKP Securities. "A breach of support at 37,500 will lead to further selling pressure towards 37,000 in the Nifty Bank," said Shah, who believes the banking index will only give a clear direction after the RBI's upcoming policy.
The Sensex rose 214.17 points, 0.37%, to 58,350.53 while the Nifty was up by 42.70 points, 0.25%, to 17,388.15 at close of trading on Wednesday. The Sensex moved in a high and low band of 58,415.63 and 57,788.78. There were 18 stocks advancing against 12 declining stocks on the index. The Nifty traded in a range of 17,407.50 and 17,225.85. There were 25 stocks advancing against 25 stocks declining on the index.
The broader indices ended in green with the BSE mid-cap index increasing 0.60%, while small-cap index was up by 0.28%. On the sectoral front, IT was up by 1.28% and TECK was up by 1.13%, while Telecom down by 1.26%, Capital Goods down by 0.82%, Auto down by 0.78%, Realty down by 0.73%, Healthcare down by 0.65% were the 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 0.43% to 18.45 on Wednesday.
Support and Resistance levels
The key support level for the Nifty is placed at 17,273, followed by 17,159. If the index moves up, the key resistance levels to watch out for are 17,455 and 17,522, according to pivot charts.
The S&P 500 rose 63.98 points or 1.56% to 4,155.17.
The Dow Jones Industrial Average rose 416.33 points or 1.29% to 32,812.50.
The Nasdaq Composite rose 319.40 points or 2.59% to 12,668.16.
The Russell 2000 index of smaller companies fell 26.48 points or 1.41% to 1,908.93.
Asian markets ended mostly higher on Wednesday. The Nikkei 225 rose 0.53%, the Hang Seng rose 0.40%, the KOSPI Composite rose 0.89%, while the Shanghai Composite fell 0.71%.
European markets ended mostly higher on Wednesday. France's CAC 40 was up by 0.97%, Germany’s DAX was up by 1.03% and London's FTSE 100 was up by 0.49%.
Major News Headlines
RBI MPC meet begins today; analysts expect 50 bps interest rate hike
The three-day Monetary Policy Committee (MPC) meeting is set to begin on August 3 and will be chaired by RBI Governor Shaktikanta Das and other MPC members. The MPC's decision on the bi-monthly monetary policy for FY23 will be made public on August 5. The most pressing concern is inflation, which has hit multi-year highs and is putting pressure on major central banks across the globe to hike interest rates.
The Reserve Bank of India began the rate hike cycle this year with a surprise 40-basis-point rise in the repo rate in May and another of 50 basis points in June. Currently, the Central Bank has raised the repo rate by 90 basis points, whereas the US Fed has raised its key rate by 225 basis points to fight rising inflation.
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Vodafone Idea Q1 Results: Net loss narrows to Rs 7,297 crore
The telecom operator has reported a loss of Rs 7,296.7 crore for the quarter ended June 30, 2022, against a loss of Rs 6,563.1 crore in the previous quarter following a hike in interest and financing costs and EBIT loss. Revenue from operations surged by 1.6% quarter-on-quarter to Rs 10,410.10 crore for the reported quarter. EBITDA declined by 7% from the previous quarter to Rs 4,328.4 crore. EBITDA margin declined by 380 basis points quarter-on-quarter to 41.6% for the first quarter.
Also Read | Where to invest during high inflation?
InterGlobe Aviation Q1 Results: Net loss narrows to Rs 1,064 crore, revenue surges 328%
The aviation major recorded a net loss of Rs 1,064.3 crore for the quarter ended June 30, 2022, which narrowed from a loss of Rs 3,174.2 crore in the same quarter of fiscal 2022 as the year-ago quarter was affected by the second Covid wave. Revenue rose by 327.5% to Rs 12,855.3 crore during the same period. EBITDAR stood at Rs 716.9 crore with an EBITDAR margin of 5.6% improved significantly compared to a negative EBITDAR of Rs 1,360.2 crore with a negative EBITDAR margin of 45.2% in the year-ago period.
Also Read | Why global economy is not in recession yet
Adani Wilmar Q1 Results: Net profit rises 10% to Rs 194 crore on higher sales
The company reported a 10.2% year-on-year growth in consolidated profit at Rs 193.59 crore for the first quarter of fiscal 2023 on string growth in the top line. Revenue surged 30.2% year-on-year to Rs 14,731.62 crore during the same period with overall volumes rising 15% year-on-year to 1.19 MMT. EBITDA increased by 14% year-on-year to Rs 496 crore.
Sixth Sense India Opportunities bought 1,50,000 shares in ADF Foods Limited at Rs 710.05 per share on the Nse.
Yuga Stocks and Commodities Private Limited bought 1,00,000 shares in Agni Green Power Limited at Rs 28.90 per share on the Nse.
IndusInd Bank Limited sold 8,01,168 shares in Agni Green Power Limited at Rs 5.59 per share on the Nse.
Norges Bank on account of the Government Pension Fund Global sold 31,63,054 shares in EPL Limited for Rs 168.02 per share on the Nse.
Ketan V Thakkar sold 23,80,000 shares in Indiabulls Housing Finance Limited for 118.76 per share on the Nse.
Deepa Devi bought 50,663 shares in Kshitij Polyline Limited for 43.34 per share on the Nse.
Victus Enterprise LLP sold 2,15,000 shares in Likhitha Infrastructure Limited for 284.30 per share on the Nse.
Niraj Rajnikant Shah sold 3,70,812 shares in Moksh Ornaments Limited for 16.81 per share on the Nse.
Foreign institutional investors (FIIs) have net bought shares worth Rs 765.17 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 518.42 crore on August 3, as per provisional data available on the NSE.
Escorts has been placed under the F&O ban for August 4. 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.