Trade Setup: Top 15 things to know before market opens on May 2, 2022
Sensex fell 460.19 points or 0.80% to 57,060.87 and Nifty was down by 142.50 points or 0.83% to 17,102.55
Nifty or India VIX rose 0.19% to 19.42 on Friday
The trends on SGX Nifty indicate a negative opening for the index in India
Due to fag-end selling in heavyweights Axis Bank, Power Grid Corporation, and Wipro, Indian equity indexes lost all of their intraday gains and ended negative on Friday.
The Nifty50 has formed a long bear candle on the daily chart, suggesting the making of a bearish engulfing type pattern after a small rise, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The 50-scrip index has been showing weak bounces after moving up from close to important supports at 16,800-16,900 levels. He sees high chances of the index sliding to the lower end of the 17,300-17,400 range this week.
Sensex fell 460.19 points or 0.80% to 57,060.87 and Nifty was down by 142.50 points or 0.83% to 17,102.55 in the previous session. Sensex touched high and lows of 57,975.48 and 56,902.30, respectively. There were 8 stocks advancing against 22 stocks declining on the index. Nifty traded in a range of 17,377.65 and 17,053.25. There were 12 stocks advancing against 38 stocks declining on the index.
The broader indices ended in red with the BSE Midcap index falling 0.81%, while the Small cap index was down by 0.58%. The top losing sectoral indices on the BSE were Oil & Gas down by 2.58%, Energy down by 2.45%, Power down by 1.92%, Utilities down by 1.74% and Capital Goods down by 1.34%, 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, rose 0.19% to 19.42 on Friday.
The trends on SGX Nifty indicate a negative opening for the index in India with a 73-points loss. The Nifty futures were trading at 16,866.00 on the Singaporean Exchange around 07:30 hours IST.
Support and Resistance levels
The key support for the Nifty is at 16,978, followed by 16,853. If the index moves up, the resistance levels to watch out for are 17,302 and 17,502, according to pivot charts.
The S&P 500 fell 155.57 points, or 3.6%, to 4,131.93.
The Dow Jones Industrial Average fell 939.18 points, or 2.8%, to 32,977.21.
The Nasdaq fell 536.89 points, or 4.2%, to 12,334.64.
The Russell 2000 index of smaller companies fell 53.84 points, or 2.8%, to 1,864.10.
Asian markets closed sharply higher on Friday with shares in Hong Kong leading the region. The Hang Seng was up 4.04% while China's Shanghai Composite was up 2.41% and Japan's Nikkei 225 was up 1.75%.
European markets finished higher on Friday with shares in Germany leading the region. The DAX was up 0.84% while London's FTSE 100 was up 0.47% and France's CAC 40 was up 0.39%.
Major News Headlines
Reliance Industries Limited (RIL) chairman Mukesh Ambani is gearing up to launch initial public offerings (IPOs) for Reliance Jio and Reliance Retail Ventures. The billionaire businessman is likely to make an important announcement regarding this during the company’s annual general meeting (AGM). The mega plan involves separate initial share sales for his telecom venture Reliance Jio Platform (RJPL) and subsidiary Reliance Retail Ventures Limited (RRVL). Both companies will be aiming to raise an amount between Rs 50,000 crore and Rs 75,000 crore each through IPOs, reported Hindu Business Line. The target amounts will make both the IPOs India’s largest-ever initial share offers. Reliance Jio stock may also be listed in the US stock market on the Nasdaq platform, one of the world’s largest marketplace for technology companies. The Reliance Jio IPO may be launched after the shares of Reliance Retail Ventures Limited hit the market, likely in December 2022. In 2020, Reliance Jio sold a 33% stake to 13 investors, including Facebook and Google, a part of which could be offered in the IPO.
IT services major Wipro Limited reported a 3.8% YoY rise in consolidated net profit at Rs 3,087 crore for the March 2022 quarter. The company has reported a net profit of Rs 2,972 crore in the same quarter of fiscal 2022. On a sequential basis, the net profit grew 3.9% from Rs 2,969 crore in the October-December quarter. Wipro’s revenue for the March 2022 quarter rose 28% to Rs 20,860 crore compared to Rs 16,245 crore in the same quarter of fiscal 2021. In dollar terms, the IT services segment revenue was at $2.72 billion up 3% QoQ and 24.4% YoY. The company expects revenue growth of 1-3% for the first quarter of the financial year 2022-23 or to be in the range of $2,748 million to $2,803 million. For the complete financial year 2021-22, the company reported revenue of Rs 79,093 crore, up 27.68% year on year.
Vedanta in discussions to raise up to $3 billion in debt as part of its semiconductor push: Report
Vedanta is in negotiations with banks to obtain $2.5 billion to $3 billion in debt to fund its semiconductor and display production plans as it strives to become India's first chipmaker, reported Reuters citing sources. The company decided in February to diversify into chip manufacturing and formed a joint venture with Taiwan's Foxconn. It has a total planned investment outlay of $20 billion. Vedanta is seeking incentives from the central government and is also in talks with several states. After getting subsidies, and once its definitive agreements are in place, the company plans to raise bank debt of as much as $3 billion. "We have financial banking relationships across India. We are talking to them," said Akarsh Hebbar, Vedanta's Global Managing Director of Display and Semiconductor Business. The company is also seeking a chief executive for its joint venture with Foxconn, Hebbar said, adding that Foxconn employees will be deployed for its semiconductor plant, which is likely to start operations in 2025. Vedanta is seeking incentives such as 1,000 acres (405 hectares) of free land, and cheaper water and power from state governments as part of its foray into semiconductors and displays, according to Reuters. India's semiconductor market is estimated to reach $63 billion by 2026, compared with $15 billion in 2020, the government says.
Yes Bank announces strong quarterly result, posts profit of Rs 367 crore
YES Bank put up a strong show in the fourth quarter (January-March) of the fiscal year 2021-22. The bank reported a profit of Rs 367 crore against a loss of Rs 3,788 crore registered in the corresponding quarter of the previous fiscal, driven by a sharp downtick in provisions, strong net interest income, and pre-provision operating profit (PPoP) with an improvement in asset quality performance. On a sequential basis, the numbers grew 38% as the profit in the December quarter stood at Rs 266 crore. For the full year, the bank reported a profit for the first time since FY19, at Rs 1,066 crore against a loss of Rs 3,462 crore in FY21 and a loss of Rs 22,715 crore in FY20, but net interest income (NII) declined 12.5% to Rs 6,498 crore compared to the previous year.
VISA CAPITAL PARTNERS sold 3,26,006 shares in Ganesh Benzoplast Limited at Rs 134.92 per share on the NSE.
NIRAJ RAJNIKANT SHAH sold 3,77,000 shares in Manaksia Steels Limited at Rs 58.39 per share on the NSE.
LAXMAN HARKISHAN NARANG bought 8,50,489 shares in Uttam Galva Steels Limited at Rs 4.87 per share on the NSE.
Foreign institutional investors (FIIs) sold shares worth a net Rs 3,648.30 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 3,490.30 crore in the Indian equity market on April 29, as per provisional data available on the NSE.
No stock/security has been put under the F&O ban for May 2. 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.