Trade Setup: Top 15 things to know before market opens on June 6, 2022
- Sensex fell 48.88 points or 0.09% to 55,769.23 and Nifty was down by 43.70 points or 0.26% to 16,584.30
- Nifty or India VIX, fell 1.70% to 19.98 on Friday
- The trends on SGX Nifty indicate a positive opening for the index in India
Indian equity benchmarks pared all the early gains and ended marginally lower on Friday dragged by heavy selling in Power, Basic Materials, Utilities and Auto stocks. The market started on a positive note and stayed in green for the most part of the day, as sentiments got boosted as SBI Research projected the Indian economy to grow at 7.5% in 2022-23, an upward revision of 20 basis points from its earlier estimate.
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The Nifty50 has formed a long negative candle on the daily chart though the pattern comes amid rangebound movement, ruling out any sharp negative impact, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"Any rise from the 200-day exponential moving average could find selling pressure near 16,800, unless the hurdle is broken out decisively on the upside. On the weekly chart, the index has formed a small bull candle with an upper shadow, suggesting the presence of crucial resistance at the highs," he said.
Sensex fell 48.88 points or 0.09% to 55,769.23 and Nifty was down by 43.70 points or 0.26% to 16,584.30 in the previous session. Sensex touched a high and low of 56,432.65 and 55,719.36, respectively. There were 12 stocks advancing against 18 stocks declining on the index. Nifty traded in a range of 16,793.85 and 16,567.90. There were 11 stocks advancing against 39 stocks declining on the index.
The broader indices ended in red with the BSE Mid cap index falling 1.45% while Small-cap index was down by 1.16%. On the sectoral front, IT was up by 0.35%, Energy was up by 0.28% and TECK was up by 0.20%, while Power was down by 2.40%, Basic Materials was down by 2.31%, Utilities was down by 2.21%, Auto was down by 1.74%, Consumer Durables was down by 1.58% 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 1.70% to 19.98 on Friday.
The trends on SGX Nifty indicate a positive opening for the index in India with an 18-points gain. The Nifty futures were trading at 16,497.50 on the Singaporean Exchange around 06:50 hours IST.
Support and Resistance levels
The key support level for the Nifty is placed at 16,503, followed by 16,423. If the index moves up, the key resistance levels to watch out for are 16,729 and 16,875, according to pivot charts.
The S&P 500 fell 68.25 points, or 1.63%, to 4,108.54.
The Dow Jones Industrial Average fell 348.58 points, or 1.05%, to 32,899.70.
The Nasdaq fell 304.16 points, or 2.47%, to 12,012.73.
The Russell 2000 index of smaller companies fell 14.62 points, or 0.77%, to 1,883.05.
European markets ended lower on Friday, Germany’s DAX was down by 0.17%, France's CAC 40 was down by 0.23% and London's FTSE 100 was down by 0.98%.
Major News Headlines
Minda Industries announces record date for bonus share and dividend payment
Minda Industries Limited (MIL) has announced record date for bonus share and dividend payment. The board of directors of the mid-cap auto ancillary company has recommended 1:1 bonus share and a final dividend of Re 1 per equity share on face value of Rs 2 per equity share for the financial year 2021-22, subject to approval of shareholders of the company in next AGM. The record date for bonus share and final dividend payment has been fixed on July 8, 2022.
Adani Group to acquire Essar Power’s transmission line for Rs 1,913 crore
Adani Transmission has signed a Share Purchase agreement with Essar Power to acquire its 100% stake in Essar Power Transmission company (EPTCL) for Rs 1,913 crore. The acquisition is a part of the company’s value-added growth strategy through organic as well as inorganic growth opportunities.
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SBI Mutual Fund acquires 59,171 equity shares in V-Guard
SBI Mutual Fund through its various schemes bought 59,171 equity shares in the company through open market transactions on June 2. With this, its shareholding in the company increased to 9.04% from 9.027% earlier.
SEBI revokes securities market ban on Poonawala Finance’s Abhay Bhutada
SEBI revoked the securities market ban imposed on Abhay Bhutada, Managing Director of Poonawalla Finance, in a care related to alleged insider trading activities in the shares of Magma Fincorp, (which is now known as Poonawalla Fincorp). According to a PTI report, SEBI conducted a detailed investigation into the matter and found that Abhay Bhutada had not communicated UPSI (unpublished price sensitive information).
OLGA TRADING PRIVATE LIMITED sold 3,40,000 shares in ASL Industries Limited at Rs 29.55 per share on the NSE.
AJAY HARKISHANDAS MEHTA sold 6,75,000 shares in Compuage Infocom Limited at Rs 27.24 per share on the NSE.
MUNDRA PRAHALAD KUMAR bought 65,50,000 shares in Integra Essentia Limited at Rs 0.10 per share on the NSE.
SANJAY POPATLAL JAIN bought 1,86,000 shares in Goldstar Power Limited at Rs 24.55 per share on the NSE.
ASHISH SHARADKUMAR NEMANI bought 1,60,000 shares in Globesecure Techno Limited at Rs 38.95 per share on the NSE.
STOCK PLANET PRIVATE LIMITED bought 2,00,340 shares in SecUR Credentials Limited at Rs 58.00 per share on the NSE.
WINTON ROAVIC LLP sold 12,00,000 shares in Selan Exploration Technology Limited at Rs 199.00 per share on the NSE.
SANJANA CRYOGENIC STORAGES LTD sold 3,00,000 shares in Simplex Infrastructures Limited at Rs 70.93 per share on the NSE.
PRABHAT FINANCIAL SERVICES LIMITED sold 72,000 shares in Sonu Infratech Limited at Rs 22.60 per share on the NSE.
ASHISH SHARADKUMAR NEMANI sold 77,000 shares in Vaishali Pharma Limited at Rs 78.98 per share on the NSE.
Foreign institutional investors (FIIs) sold shares worth a net Rs 3,770.51 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 2,360.51 crore in the Indian equity market on June 3, as per provisional data available on the NSE.
The National Stock Exchange has not put any stock under the F&O ban for June 6. 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.