Trade Setup: Top 15 things to know before market opens on August 8, 2022
- The Sensex rose 81.13 points or 0.15% to 58,387.93 while the Nifty was up by 15.50 points or 0.09% to 17,397.50
- Nifty or India VIX, fell 1.78% to 18.92 on Friday
- The trends on SGX Nifty indicate a negative opening for the index in India
Indian equity benchmarks ended modestly higher on Friday led by gains in Telecom, Basic Materials and TECK stocks. Key indices made a positive start and stayed in green for the most part of the day. Reserve Bank of India (RBI) raised the benchmark lending rate by 50 basis points to 5.40% to tame inflation. It has also retained its FY23 gross domestic product (GDP) growth forecast at 7.2%.
The Nifty50 has formed a small negative candle on the daily chart with minor upper and lower shadows, reflecting rangebound action in the market, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. He expects the benchmark to take a breather before regaining momentum.
The Sensex rose 81.13 points or 0.15% to 58,387.93 while the Nifty was up by 15.50 points or 0.09% to 17,397.50 at close of trading on Friday. The Sensex moved in a high and low band of 58,649.19 and 58,244.86. There were 16 stocks advancing against 14 declining stocks on the index. The Nifty traded in a range of 17,474.40 and 17,348.75. There were 28 stocks advancing against 22 stocks declining on the index.
The broader indices ended in green with the BSE mid-cap index increasing 0.09%, while small-cap index was up by 0.23%. The top gaining sectoral indices on the BSE were Telecom up by 1.34%, Basic Materials up by 0.89%, TECK up by 0.82%, IT up by 0.72% and Bankex up by 0.47%, while Utilities down by 1.86%, Power down by 1.59%, Auto down by 1.12%, Consumer Durables down by 0.84% and Consumer Discretionary down by 0.45% were the top 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, fell 1.78% to 18.92 on Friday.
The trends on SGX Nifty indicate a negative opening for the index in India with a 77 points loss. The Nifty futures were trading at 17,346.50 on the Singaporean Exchange around 06:45 hours IST.
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Support and Resistance levels
The key support level for the Nifty is placed at 17,339, followed by 17,281. If the index moves up, the key resistance levels to watch out for are 17,465 and 17,532, according to pivot charts.
The S&P 500 fell 6.75 points, or 0.16%, to 4,145.19.
The Dow Jones Industrial Average rose 76.65 points, or 0.23%, to 32,803.47.
The Nasdaq fell 63.03 points, or 0.50%, to 12,657.57.
The Russell 2000 index of smaller companies rose 15.37 points, or 0.81%, to 1,921.82.
Asian markets ended mostly higher on Friday. The Nikkei 225 rose 0.87%, the Hang Seng rose 0.14%, the KOSPI Composite rose 0.72% and the Shanghai Composite rose 1.19%.
European markets ended mostly lower on Friday. France's CAC 40 was up by 0.63%, Germany’s DAX was down by 0.55% and London's FTSE 100 was down by 0.11%.
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Major News Headlines
RBI MPC hikes repo rate by 50 bps as inflationary pressures intensify
The Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced that the Monetary Policy Committee voted unanimously to hike the benchmark interest rate by 50 basis points (bps) to 5.4% with immediate effect. The Standing Deposit Facility (SDF) rate is adjusted to 5.15%. The Marginal Standing Facility (MSF) and bank rate are revised at 5.65%. The RBI Policy stance is retained at Withdrawal of Accommodation.
RBI Governor Shaktikanta Das while delivering his MPC statement said, the Indian economy is impacted by global situations. The globalisation of inflation coincides with de-globalisation of trade, he said.
State Bank of India Q1 Results: Net profit falls 6.7% to Rs 6,068 crore
The country’s largest lender posted a 6.7% year-on-year decline in profit at Rs 6,068 crore for the quarter ended June 30, 2022, impacted by lower operating profit and other income, though supported by lower provisions. Net interest income during the April-June period rose 12.87% year-on-year to Rs 31,196 crore. However, operating profit declined 32.8% year-on-year to Rs 12,753 crore and other income plunged 80% year-on-year to Rs 2,312 crore for the reported quarter. Loan loss provisions declined 15.14% to Rs 4,268 crore.
Bharat Petroleum Corporation Q1 Results: Consolidated loss widens to Rs 6,291 crore
The oil marketing company reported a standalone loss of Rs 6.290.80 crore for the quarter ended June 30, 2022, compared to a profit of Rs 3,192.58 crore in the same quarter of previous financial year, impacted by an increase in input cost. Revenue from operating surged by 54% year-on-year to Rs 1.38 lakh crore for the April-June quarter. The average gross refining margin (GRM) of the Corporation for the quarter was $27.51 per barrel against $4.12 per barrel in first quarter as the supressed marketing margins of certain petroleum products have offset the benefit of higher GRM.
FSN E-Commerce Ventures Q1 Results: Consolidated profit grows 42% to Rs 5 crore
The parent of Nykaa posted a 42.24% year-on-year increase in consolidated profit at Rs 5.01 crore for the quarter ended June 30, 2022, aided by better topline and operating performance of the cosmetics-to-fashion retailer. Revenue from operations for the period came in at Rs 1,148.4 crore, reporting a 40.56% growth compared to the same quarter of previous financial year. The consolidated gross merchandise value (GMV) has been quite strong, and has grown 47% year-on-year to Rs 2,155.8 crore for the reported quarter.
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Bulk Deal data
Nakshatra Garments Private Limited bought 2,12,290 shares in Arihant Superstructures Limited at Rs 176.15 per share on the Nse.
Macritchie Investments Pte Limited sold 202,50,000 shares in Crompton Greaves Consumer Electrical Limited at Rs 370.74 per share on the Nse.
Eriska Investment Fund Ltd bought 75,000 shares in Dev Information Technology Limited at Rs 199.95 per share on the Nse.
Samalkha Shares Consultants LLP bought 25,00,000 shares in Integra Essentia Limited at Rs 6.65 per share on the Nse.
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Company Shivaay Trading bought 2,55,000 shares in Indbank Merchant Banking Services Limited at Rs 24.74 per share on the Nse.
Mangalam Laboratories Private Limited sold 71,810 shares in IMP Powers Limited at Rs 8.26 per share on the Nse.
Shaibal Ghosh bought 1,00,939 shares in Kshitij Polyline Limited at Rs 44.41 per share on the Nse.
Reliance Mutual Fund sold 746,81,276 shares in NMDC Limited at Rs 110.81 per share on the Nse.
DII and FII data
Foreign institutional investors (FIIs) have bought shares worth a net Rs 1,605.81 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 495.94 crore on August 5, as per provisional data available on the NSE.
NSE F&O Ban
Balrampur Chini Mills, Escorts and Delta Corp are the stocks/securities that have been placed under the F&O ban for August 8. 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.