Trade Setup: Top 15 things to know before market opens on May 20, 2022
- Sensex fell 1,416.30 points or 2.61% to 52,792.23 and Nifty was down by 430.90 points or 2.65% to 15,809.40
- Nifty or India VIX jumped 2.26% to 24.56 on Thursday
- The trends on SGX Nifty indicate a positive opening for the index in India
Indian equity benchmarks continued their losing trend for the second straight session on Thursday and closed with losses of over 2.5% as fears over slower economic growth due to rising inflation harmed investor sentiment.
The Nifty50 has formed a bearish candle on the daily chart, hinting at more weakness ahead, according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
"A quick pullback rally is not ruled out if the 50-scrip index succeeds to trade above 15,700," he said.
Sensex fell 1,416.30 points or 2.61% to 52,792.23 and Nifty was down by 430.90 points or 2.65% to 15,809.40 in the previous session. Sensex touched a high and low of 53,356.04 and 52,669.51, respectively. There were 3 stocks advancing against 27 stocks declining on the index. Nifty traded in a range of 15,984.75 and 15,775.20. There were 3 stocks advancing against 47 stocks declining on the index.
The broader indices ended in red with the BSE Midcap index falling 2.66%, while the Small cap index was up by 2.29%. The top losing sectoral indices on the BSE IT down by 5.25%, TECK down by 5.11%, Metal down by 4.23%, Telecom down by 3.46% and Basic Materials down by 2.81%, while there were no gaining sectoral indices on the BSE.
India VIX Index
Nifty or India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.26% to 24.56 on Thursday.
The trends on SGX Nifty indicate a positive opening for the index in India with a 35-points gain. The Nifty futures were trading at 15,984.20 on the Singaporean Exchange around 06:50 hours IST.
Support and Resistance levels
The key support level for the Nifty is placed at 15,728, followed by 15,647. If the index moves up, the key resistance levels to watch out for are 15,938 and 16,066, according to pivot charts.
The S&P 500 fell 22.89 points, or 0.6%, to 3,900.79.
The Dow Jones Industrial Average fell 236.94 points, or 0.8%, to 31,253.13.
The Nasdaq fell 29.66 points, or 0.3%, to 11,388.50.
The Russell 2000 index of smaller companies rose 1.38 points, or 0.1%, to 1,776.22.
Asian markets finished mostly lower on Thursday. The Nikkei 225 fell 1.89% and the Hang Seng fell 2.54%. The Shanghai Composite gained 0.36%.
European markets are lower yesterday with shares in Germany off the most. The DAX was down 0.90% while France's CAC 40 was off 1.26% and London's FTSE 100 was lower by 1.82%.
Major News Headlines
Godrej Consumer Q4 net profit declines marginally to Rs 363 crore
Indian FMCG major Godrej Consumer Products Ltd (GCPL) reported a marginal decline in consolidated profit after tax at Rs 363.24 crore for the March quarter of fiscal 2022. The company had posted a consolidated profit after tax of Rs 365.84 crore in the year-ago period. Consolidated revenue from operations during the March 2022 quarter stood at R 2,915.82 crore compared with Rs 2,730.74 crore in the year-ago period. For the full financial year ended March 31, 2022, the company reported a consolidated profit after tax of Rs 1,783.39 crore as against Rs 1,720.82 crore in the previous financial year. Consolidated total revenue from operations in fiscal 2022 stood at Rs 12,276.5 crore as against Rs 11,028.62 crore in the previous financial year. GCPL Managing Director and CEO Sudhir Sitapati said, "We delivered a weak performance in Q4, FY 2022. Overall sales grew by 7% and our full-year sales grew in double-digits. However, this growth was driven by pricing." GCPL said during the March quarter, India sales grew by 9% to Rs 1,604 crore but volume declined by 3%.
Ashok Leyland's Q4 net profit rises 274% to Rs 901 crore, and revenue rises 25%
Hinduja Group’s flagship Ashok Leyland reported a 274% year-on-year (YoY) jump in net profit at Rs 901.4 crore for the fourth quarter of fiscal 2022. Total income came in at Rs 8,744.3 crore during the March quarter, up 24.9% against Rs 7,000.5 crore in the corresponding quarter of the previous fiscal. Its truck market share for the reported quarter rose to 30.6% against 28.9% in March 2021 quarter, this is the highest market share seen in the last 11 quarters.
HPCL Q4 net profit declines 40%, announces final dividend of Rs 14 per share
Hindustan Petroleum Corporation Limited (HPCL) reported a 40% decline in net profit in the March quarter of the financial year 2021-22 as higher refining margins were wiped away by losses on auto fuel sales. Net profit stood at Rs 1,795.26 crore in March 2022 quarter compared with Rs 3,017.96 crore in the year-ago period. HPCL has recommended a final dividend of Rs 14 per share for the financial year 2021-22.
Investors lose over Rs 6.71 trillion as markets crash amid inflation worries
Equity investors lost over Rs 6.71 trillion on Thursday, May 19, 2022, as domestic benchmark indices tumbled amid a global market meltdown. The BSE Sensex tumbled 1,416.30 points or 2.61% to settle at 52,792.23, following weak global markets and persistent foreign fund outflows. Ami weak market trend, the market capitalization of BSE-listed firms plunged by Rs 6,71,051.73 crore to stand at Rs 2,49,06,394.08 crore.
Bulk Deal data
ALPHA LEON ENTERPRISES LLP sold 17,17,674 shares in Integra Essentia Limited at Rs 0.17 per share on the NSE.
VISHESH GUPTA sold 33,82,271 shares in Integra Essentia Limited at Rs 0.19 per share on the NSE.
ANUSTUP TRADING PRIVATE LIMITED sold 58,54,647 shares in KBC Global Limited at Rs 4.99 per share as per NSE.
GOUTAM CHORARIA sold 1,49,312 shares in Kshitij Polyline Limited at Rs 28.00 per share as per NSE.
NEELAM NYATI bought 51,326 shares in Kshitij Polyline Limited at Rs 29.64 per share as per NSE.
PALASH BANERJEE bought 1,44,646 shares in Kshitij Polyline Limited at Rs 28.00 per share as per NSE.
DII and FII data
Foreign institutional investors (FIIs) sold shares worth a net Rs 4,899.92 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 3225.54 crore in the Indian equity market on May 19, as per provisional data available on the NSE.
NSE F&O Ban
Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals Ltd, Indiabulls Housing Finance, and Punjab National Bank are under the F&O ban for May 20. 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.