Trade Setup: Top 15 things to know before market opens on March 24, 2022
- Sensex fell 304.48 points or 0.53% to 57,684.82 and Nifty was down by 69.85 points or 0.40% to 17,245.65
- FIIs bought shares worth a net Rs 481.33 crore while DIIs sold shares worth a net Rs 294.23 crore
- The trends on SGX Nifty indicate a positive opening for the index in India
Indian equity benchmarks on Wednesday gave up early gains and drifted down as investors focused on rising crude oil prices. Brent crude futures were trading at $117 per barrel due to global supply worries in the midst of the current Russia-Ukraine conflict.
The Nifty50 appears to be sticking to a higher bottom formation on the intraday as well as daily charts but t is consistently facing resistance near 17,440, according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
Support for the 50-scrip index has shifted to 17,200 from 17,000, he said.
Sensex fell 304.48 points or 0.53% to 57,684.82 and Nifty was down by 69.85 points or 0.40% to 17,245.65 in the previous session. Sensex touched high and low of 58,416.56 and 57,568.59, respectively. There were 13 stocks advancing against 17 stocks declining on the index. Nifty traded in a range of 17,442.40 and 17,199.60. There were 21 stocks advancing against 29 stocks declining on the index.
The broader indices were trading mixed with the BSE Midcap index rose 0.39%, while the Small cap index was down by 0.02%. The top gaining sectoral indices on the BSE were Metal up by 1.53%, Utilities up by 1.36%, Power up by 1.30%, Basic Materials up by 0.54%, Oil & Gas up by 0.35% while, Bankex down by 0.81%, Finance down by 0.74%, Auto down by 0.72%, Capital Goods down by 0.59% and Industrials down by 0.56% were the top losing indices on BSE.
Support and Resistance levels
The key support level for the Nifty is placed at 17,149, followed by 17,053. If the index moves up, the key resistance levels to watch out for are 17,392 and 17,539, according to pivot charts.
The trends on SGX Nifty indicate a positive opening for the index in India with a 10-points gain. The Nifty futures were trading at 17,177.50 on the Singaporean Exchange around 06:30 hours IST.
Asian markets finished broadly higher yesterday with shares in Japan leading the region. The Nikkei 225 was up 3.00% while Hong Kong's Hang Seng was up 1.29% and China's Shanghai Composite was up 0.34%.
The S&P 500 fell 55.37 points, or 1.2%, to 4,456.24.
The Dow Jones Industrial Average fell 448.96 points, or 1.3%, to 34,358.50.
The Nasdaq fell 186.21 points, or 1.3%, to 13,922.60.
The Russell 2000 index of smaller companies fell 36.14 points, or 1.7%, to 2,052.21.
European markets finished mixed. The CAC 40 gained 3.32%, while the DAX led the FTSE 100 lower. They fell 1.31% and 0.22% respectively.
Edible oil firm Ruchi Soya, owned by Patanjali Ayurved group, will hit the capital markets with a follow-on public offer (FPO) on Thursday, March 24, 2022. The issue to raise Rs 4,300 crore will remain open for subscription for three days and conclude on March 28. Ruchi Soya, the largest edible oil maker in the country, is the first company to be re-listed after the bankruptcy process. Patanjali, which currently holds 98.9% of the company, will dilute around 19% at the upper end and 18% at the lower end of the price band. The remaining 6% to 7%, to meet the mandatory 25% public float, will be diluted before the SEBI deadline of December 2022, the company said.
India has achieved its target of $400 billion in exports in the financial year 2022. Asia’s third-largest economy reached its highest ever goods exports on March 23, nine days ahead of the intended deadline. In the April-December period, the figure stood at $300 billion. “India set an ambitious target of $400 billion of goods exports & achieved this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for this success. This is a key milestone in our Atmanirbhar Bharat journey,” Prime Minister Narendra Modi tweeted on Wednesday.
One97 Communications, the operating company of Paytm, on Wednesday, said its business fundamentals remain robust and it had no information that may have a bearing on the price-volume behaviour in the share price and which is not yet disclosed to the stock exchanges. In a filing to BSE, One97 Communications said it has, from time to time, made all necessary disclosures to stock exchanges within the stipulated timeline. The statement read "The Company would also like to point out the business fundamentals remain robust as demonstrated in our last earnings release dated February 04, 2022," it noted. "We would like to reiterate that the Company is committed to comply with the Listing Regulations and any information/ announcement, likely to have bearing on the price/ volume of the shares of the Company would be disclosed, from time to time, to the Stock Exchanges within stipulated timeline," the statement added.
India halts plan to allow domestic firms to list overseas
India has frozen plans to allow local firms to list overseas as it seeks to bolster its own capital markets, government officials and industry sources told reuters, in a blow to foreign funds and stock exchanges seeking to tap into the country's tech boom. New Delhi's decision marks a sudden reversal in policy after officials said late last year that the new rules for overseas listings would be announced in February. Three senior government officials with direct knowledge of the decision told Reuters the plan had been put on hold as India believes there is enough depth in local capital markets for firms to raise funds and get good valuations.
TCS Rs 18,000 crore buyback subscribed over 7 times on last day
The Rs 18,000-crore share buyback programme of Tata Consultancy Services, India’s second-most valuable firm, was subscribed over 7.5 times. According to data provided by stock exchanges, 300 million shares were tendered against the offer size of 40 million shares. The Tata group flagship firm will extinguish 1.08% of its equity under the buyback programme. The buyback is being done at Rs 4,500 per share—over 21% premium to TCS’s last close. Shares of TCS last closed at Rs 3,708, up 0.2% over the previous day’s close. The tender route buyback, which commenced on March 9, ended on Wednesday.
DELTA CORP LIMITED sold 4,00,000 shares in Advani Hotels & Resorts at Rs 97.37 per share on the NSE.
LARSEN & TOUBRO LIMITED bought 212,17,957 shares in L&T Finance Holdings Ltd at Rs 83.52 per share on the NSE.
INTEGRATED CORE STRATEGIES ASIA PTE LTD sold 92,38,350 shares in National Alum Co Ltd at Rs 121.96 per share on the NSE.
PANKAJ RAMESH CHANDRA VYAS sold 1,62,000 shares in SecUR Credentials Limited at Rs 94.20 per share on the NSE.
RAJASTHAN GLOBAL SECURITIES PVT LTD bought 99,897 shares of Selan Exploration Technol at Rs 191.05 per share on NSE.
CHHEDA DEEPTI PANKAJ sold 8,400 shares of Bombay Metrics S C Ltd at Rs 420.03 per share on NSE.
VENKATESHWARA INDUSTRIAL PROMOTION CO.LIMITED bought 19,200 shares in SP Refractories Limited at Rs 86.76 per share on the NSE.
ALPHA LEON ENTERPRISES LLP sold 203,32,114 shares in Visesh Infotecnics Limited at Rs 1.20 per share on the NSE.
Foreign institutional investors (FIIs) bought shares worth a net Rs 481.33 crore, while domestic institutional investors (DIIs) sold shares worth a net Rs 294.23 crore in the Indian equity market on March 23, as per provisional data available on the NSE.
Balrampur Chini Mills, Delta Corp, GNFC, Indiabulls Housing Finance, SAIL, and Sun TV Network are under the F&O ban for March 24. 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.