Markets are set to remain on the edge amid higher price pressures and concerns that monetary tightening in many countries signals more losses. At the open, the Sensex was up 136.56 points at 51,496.98, while the broader Nifty was up 32.80 points at 15,326.30.
Derivatives View: ICICI Securities
nifty
The Nifty fell for the sixth consecutive session on Friday and ended last week with a loss of around 5.5%. As per the options data, several strikes witnessed aggressive call writing, especially the 15500 call strike which has substantial OI, which should act as resistance. Therefore, any increase around the 15500 level should be used to create short positions.
bank nifty
On Friday, Bank Nifty outperformed Nifty and closed with a gain of 0.38%. Bank Nifty 32500 Put Strike has larger OI, which should act as immediate support for the day, while higher 33000 Call Strike should act as immediate resistance and limit the upside.
Currently Top Gainers/Losers of Sensex
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Metal, realty, bank indices under pressure
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Nifty 15,300. open over
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Sensex opened strongly, gained more than 150 points in the open
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Sensex Flat in pre-open
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Nifty Flat in pre-open
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Vedanta invites EOI for its Tuticorin Copper Smelter
Vedanta has invited Expression of Interest (EoI) for its Tuticorin-based smelter, Sterlite Copper, which has been closed since mid-2018 following a Tamil Nadu government order. The last date for submission of EOI is 4th July.
Oxygen generation facility as well as plant units including residential houses are also part of the sale offer. The plant has faced shutdown due to alleged violation of environmental norms.
Sterlite Copper accounted for 40% of India’s copper production before it was forced to shut down.
Nifty View: Chief Analyst-Technical & Derivatives, Angel One
Nifty is located exactly at the previous breakout point of May 2021 which is around 15400 – 15300. Furthermore, the ‘RSI-Smoothed’ oscillator on the daily chart is showing a ‘positive divergence’ i.e. lower lows in recent price and higher lows in the oscillator. This position usually occurs at the end of any downtrend. So, looking at the chart, we are clearly in two minds at the moment. From our point of view, although we have not been able to catch the recent down move, it is better not to go ahead in challenging times. As far as support is concerned, 15200 – 15000 should be seen as immediate support and breach of the same will definitely create some panic situation in our markets.
The market will gain strength only after crossing the key levels of 15700 – 15800 depending on the close. Till then it is not right to carry aggressive long overnight. Traders are advised to take one move at a time in the coming week and ideally should only lighten positions during the day. Since we are mirroring global trends, markets can surprise us in any direction at any time. There is a famous saying in the market that one should avoid catching a falling knife (market). This momentum holds true for traders, but with a slightly wider perspective, we firmly believe that one should definitely never start submitting quality offers in a staggered manner.
A major reform awaits in the Banks Board Bureau
Two people familiar with the matter said the finance ministry is working to expand and relaunch the Banks Board Bureau (BBB) by bringing in more representatives from the insurance sector. The move is aimed at legally empowering the body to recommend candidates for public sector insurers and expediting top-level recruitment in all government financial institutions. ,read here,
Air India made one of the biggest aircraft deals in history: Bloomberg
Air India Ltd., according to people familiar with the matter, is looking to place an order for 300 narrowbody jets, which could be one of the largest orders in commercial aviation history as the formerly state-run airline is under new ownership. Wants to overhaul the fleet. ,
The carrier could order Airbus SE’s A320neo family of jets or Boeing Co.’s 737 MAX model, or a mix of the two, the people said, asking not to be identified because the discussions are confidential. There could be a $40.5 billion deal for 300 737 MAX 10 jets at sticker prices, although discounts are common in such large purchases.
Winning a narrow order in India would be a coup for Boeing, as rival Airbus dominates the skies in the country, the world’s fastest-growing aviation market before the Covid pandemic. IndiGo, operated by InterGlobe Aviation Ltd., is the world’s largest customer for the European manufacturer’s best-selling narrowbodies, which orders over 700, and others from the same family including Vistara, Go Airlines India Ltd and AirAsia India Ltd. Fly a plane from.
SGX Nifty ticks down
Nifty futures on the Singapore Exchange fell 70.50 points, or 0.46%, to 15,245 in early deals on Monday, indicating a weak opening for Indian earnings.
On Friday, the BSE Sensex fell 135 points to 51,360, while the Nifty 50 closed 67 points lower at 15,293.
Asia got off to a weak start; monetary tightening weight
Asian stocks fell on Monday and US equity futures rose as sentiment remained under control due to tightening of monetary policy.
MSCI Inc’s gauge of Asia-Pacific shares hit its lowest since June 2020 amid declines in Japan and Hong Kong and mixed performance in China, where banks kept their key lending rates unchanged.
The S&P 500 contracts declined, while the Nasdaq 100 gained more than 1%.
Markets are set to remain on the edge amid higher price pressures and concerns that monetary tightening in many countries signals more losses.
In the latest Fed commentary, Governor Christopher Waller said he would support another 75-basis-point rate hike at the central bank’s July meeting, as economic data is expected to arrive.
S&P 500 futures fell 0.1%, while Nasdaq 100 futures rose 0.1%. Euro Stokes 50 futures fell 0.4%
Japan’s Topix index fell 1.1%, Australia’s S&P/ASX 200 was down 0.6%, South Korea’s Kospi fell 2.3%, the Hang Seng index fell 0.4% and the Shanghai Composite was little changed.
Wall Street stocks ended a rocky week mostly high but low on Friday amid fears of a recession as the US central bank took aggressive action against inflation.
The broad-based S&P 500, which entered a bear market week, ended 0.2% higher at 3,674.84, while the tech-rich Nasdaq Composite Index gained 1.4% to 10,798.35. The Dow Jones Industrial Average slipped 0% to 29,888.78 after closing below 30,000 on Thursday for the first time since January 2021.
The S&P lost 5.8% in the week, its worst performance since 2020, while the Dow and Nasdaq lost 4.8%.
Wall Street shares fell amid moves to raise interest rates to combat inflation.
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