Nifty50 on Wednesday breached the 16,000 mark intraday, for the second straight session, before closing just below the psychological level. The index formed a bullish candle on the daily chart that almost engulfed the negative candle of the previous session. Technically, it indicates a negation of bearish formation and signals positive bias for the market ahead, according to Nagaraj Shetti at HDFC Securities.
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US stocks open flat with focus on FOMC minutes
Wall Street’s main indexes were subdued at the open on Wednesday as investors awaited minutes from the Federal Reserve’s meeting last month for clues on the health of the economy and the pace of interest rate hikes to combat high inflation.The Dow Jones Industrial Average fell 10.52 points, or 0.03%, at the open to 30,957.30. The S&P 500 opened higher by 0.59 points, or 0.02%, at 3,831.98, while the Nasdaq Composite gained 15.66 points, or 0.14%, to 11,337.90 at the opening bell.
Tech View: Nifty50 forms bullish candle, sends positive signals
Nifty50 on Wednesday breached the 16,000 mark intraday, for the second straight session, before closing just below the psychological level. The index formed a bullish candle on the daily chart that almost engulfed the negative candle of the previous session.Technically, it indicates a negation of bearish formation and signals positive bias for the market ahead, according to Nagaraj Shetti at HDFC Securities.
The RBI’s measures come on the back of a substantial dollar shortage and are aimed at shoring up the capital flows into India. While it is difficult to ascertain the quantum of flows, the measures are attractive for banks and FPIs. While India’s macro situation is better than in the 2013 period, these measures would alleviate and preempt the adverse impact on the external sector balance. The RBI is clearly aiming at softening the depreciation bias and capping the speculative moves against the INR.”
– Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities
RBI takes steps to boost forex inflows amid Rupee fall, to undertake measures to enhanceforex inflows
#BREAKING | RBI takes steps to boost forex inflows amid Rupee fall, to undertake measures to enhance forex inflows… https://t.co/a5NNPycssA
— ET NOW (@ETNOWlive) 1657106139000
RBI steps in with measures to enhance forex inflows
The Reserve Bank of India said on Wednesday it would take measures to enhance foreign exchange inflows, including letting foreign investors invest in short-term corporate debt and allowing the purchase of more government securities under the fully accessible route.RBI said it has been monitoring the liquidity conditions in the foreign exchange market and has stepped in as needed to alleviate the dollar tightness with the objective of ensuring orderly market functioning.
Gold falls Rs 760; silver tumbles Rs 1,276
Gold prices in the national capital on Wednesday fell by Rs 760 to Rs 51,304 per 10 grams, according to HDFC Securities. In the previous trade, the yellow metal settled at Rs 52,064 per 10 grams.Silver also tumbled by Rs 1,276 to Rs 56,930 per kg from Rs 58,206 per kg in the previous trade.
Rupee rises 3 paise to close at 79.30 against US dollar
The rupee recovered from its all-time low to close 3 paise higher at 79.30 (provisional) against the US dollar on Wednesday after a sharp fall in crude oil and foreign fund inflows. At the interbank forex market, the local unit opened at 79.29 against the greenback and witnessed an intra-day high of 79.24 and a low of 79.37.It finally settled at 79.30, a rise of 3 paise over its previous close.In the previous session, the rupee had closed at an all-time low of 79.33 against the US dollar.
According to media reports, the Department of Food and Public Distribution has asked the edible oil companies to reduce the edible oil prices in the retail market within a week. Government expects further reduction of 10-15% in the branded edible oil. The government wants edible oil companies to pass on the benefits of softening edible oil prices and reduction in the import duties to the consumers. Most of the companies (including Adani Wilmar and Ruchi Soya) at mass-to-mid premium range of edible oil products have reduced the prices by Rs 10-15 per litre. Further reduction is expected in the coming weeks. We should expect premium oil brand such as Saffola to follow the price cut soon to maintain the pricing premium with other edible oil brands. The cut in the branded oils would help sales volume to recover in the quarters ahead as dealers/distributors have started to build inventory with reduced prices in expectation of recovery in demand and festive season round the corner. Also some of the branded players to gain due to lower pricing difference with unbranded players.
– Kaustubh Pawaskar, analyst, Sharekhan by BNP Paribas
Tech View: Nifty & Nifty Bank
The Bank Nifty covered the entire previous day’s losses and closed near the day’s high indicating sharp short-covering throughout the day. The index is comparatively stronger than the nifty index and continues to be in buy mode with strong support at the 33800 level. The index is likely to test the upside level of 35,000-35,500 on the upside which coincides with its 200DMA.
— Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
City Union Bank board approves raising Rs 500 cr via QIP
Price as on 06 Jul, 2022 03:56 PM, Click on company names for their live prices.
“Softening crude oil prices, FIIs repositioning to net buyers and strong business data from lenders tempered optimism in domestic equities. Crude prices fell over recessionary fears, however, the fall has boosted the appetite for consumption, chemicals, logistics and OMCs as it will reduce the cost burden of these sectors”
– Vinod Nair, Head of Research at Geojit Financial Services.
Heatmap: Top Sensex gainers & losers
CLOSING BELL: Nifty ends above 15,950
CLOSING BELL: Sensex surges 617 points on gains in bank, FMCG stocks
Global Market Check
- The Stoxx Europe 600 rose 1.7% as of 9:19 a.m. London time
- Futures on the S&P 500 were little changed
- Futures on the Nasdaq 100 were little changed
- Futures on the Dow Jones Industrial Average were little changed
- The MSCI Asia Pacific Index fell 0.8%
- The MSCI Emerging Markets Index fell 0.9%
The aviation regulator has taken cognisance of the growing number of safety-related incidents surrounding low-cost carrier Spicejet. DGCA has issued a show-cause notice to SpiceJet over degradation of safety margins of its aircraft.
Price as on 06 Jul, 2022 02:49 PM, Click on company names for their live prices.
Expert View: Yash Gupta, Equity Research Analyst, Angel One
Overall the Q1FY23 quarterly update seems to be very strong for Bajaj Finance and the company is back on its pre-covid growth momentum. We expect bajaj finance to continue this growth momentum for the next couple of quarters. We have a neutral outlook on Bajaj Finance looking at the current valuations and comparing with peers group.
At a PE multiple of 1.9 times, ONGC traded at a 78 per cent discount to its 10-year average of 8.5 times. Tata Steel at 5.9 times traded at a 53 per cent discount to its historic PE of 12.5 times. Coal India (down 53 per cent), Apollo Hospitals (down 38 per cent) and JSW Steel (down 36 per cent) are a few other stocks which are trading at steep discounts to their historical levels.
- Consumer companies like HUL and Godrej Consumer are looking much better in terms of both the crude price fall as well as some sort of a pickup that we may see on the rural side and the progress of the monsoon. So the incremental triggers or the positive takeaways are little better for the consumer names.
- In the case of Asian Paints, while the crude price would have some impact, the way things are emerging in terms of competition and the higher base and higher valuation, the upside potential there in the current scenario may not be that significant.
Nifty opened flat and has been inching to higher levels but has been trading in a range. The index has surpassed the 20 DEMA and is sustaining at higher levels which indicates strength. Any dip towards lower levels of 15735 can be utilized as a buying opportunity. India VIX is has cool off a bit and is at 20 level. However it needs to cool down below 18 level for stability and a directional move in the market. Now till it holds below 15735 zone we can expect move towards 16000 and 16161 whereas support at placed 15735 and 15650. Market breadth is positive which indicates that there support based buying at lower levels.
– Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services
FMCG stocks trade on firm note, rise up to 5%
Price as on 06 Jul, 2022 01:34 PM, Click on company names for their live prices.
Grovy India signs agreement for construction of new project in South Delhi
Price as on 06 Jul, 2022 01:05 PM, Click on company names for their live prices.
Dept of Food & Public Distribution asks edible oil cos to reduce prices in retail market within a week
Price as on 06 Jul, 2022 01:05 PM, Click on company names for their live prices.
Sensex rallies over 500 points
Market LIVE Updates: BSE Midcap index rallies nearly 1%
Housing sales in Jan-Jun at 9-year high in top 8 cities; sales see 60% annual growth: Knight Frank
- Housing sales rose 60 per cent annually in January-June this year across eight major cities at 1,58,705 units, the highest half-yearly demand in nine years, mainly driven by lower base effect as well as mortgage rates, according to Knight Frank India.
- Housing sales stood at 99,416 units in the first six months of 2021, the consultant said in its 17th edition of half-yearly report ‘India Real Estate: Residential and Office Market H1 2022’, which was released on Wednesday through a webinar.
Crypto lender Voyager files for bankruptcy
Voyager Digital has filed for bankruptcy, the crypto lender said in a statement on Wednesday, a week after suspending withdrawals, trading and deposits to its platform as it sought additional time to explore strategic alternatives.
With the selling pressure easing on approach to the 15780 region, marked as the critical level for yesterday, the16200 trajectory is expected to remain in play. However, oscillators look accommodative for some more slippage, before a stronger upswing evolves. Towards this end, we look forward to seeing dips being arrested near 15735.Slippage past the same could render the trend weak, exposing 15500 initially.
– Anand James – Chief Market Strategist at Geojit Financial Services
10-year yield drops 10 bps to 7.29%
#MarketAlert | 10-year yield drops 10 bps to 7.29% #BondYield #StockMarket https://t.co/PzWr4KLdE0
— ET NOW (@ETNOWlive) 1657087619000
SpiceJet shares slide 7%; hit 52-week low level
Shares of SpiceJet continued to fall on Wednesday, declining 7 per cent to hit its one-year low level, amid multiple instances of its planes suffering technical glitches in recent weeks. The scrip tanked 7 per cent to hit its 52-week low of Rs 35 on the BSE. SpiceJet shares opened at Rs 37.10 apiece after falling 2.33 per cent to close at Rs 37.65 on Tuesday, a day when its Dubai-bound plane was diverted to Karachi due to malfunctioning of the fuel indicator.
STOCK IN FOCUS: GODREJ CONSUMER
- Some of our short-term challenges such as continued unprecedented global commodity inflation and the performance of our Indonesia businesscontinued to play out in this quarter as well, impacting consumption and margins.
- The Indian FMCG industry continued to remain soft during the quarter. It continued to be hit hard by inflation levels aggravating due to geopolitical tensions, leading to successive price increases and impacting volumes.
- Rural markets witnessed slower growth compared to urban. However, the recent correction in commodity prices and the forecast of a good monsoon are encouraging. We remain competitive given the relatively non-discretionary mass pricing of our portfolio.
- In India, we expect to deliver early double-digit sales growth on a high base. Our 3-year CAGR remains robust and in early double-digits. We would have mid-single digit volumes drop on a high base, with a 3-year volume CAGR close to mid-single digits.
Discipline and Diversification are the most important learnings. Many people misjudged the prospects of new-age companies and ignored fundamentals like cashflows & earnings.
– Srinivas Rao Ravuri, CIO, PGIM India Mutual Fund
Palm oil slumps over 8% to near one-year low
Malaysian palm oil futures plunged more than 8% on Wednesday to a near one-year low, hit by anticipation of rising supplies amid a sell-off in crude and Dalian oils driven by recession fears. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange fell 348 ringgit, or 8.34% to 3,426 ringgit ($774.76) a tonne by 0307 GMT.
Sensex LIVE Updates: Index extends gains, rises over 400 points
JUST IN: Dolly Khanna stake reduced from 1.66% to 1.46% QoQ in Mangalore Chem
Price as on 06 Jul, 2022 10:43 AM, Click on company names for their live prices.
The broader market has seen a massive correction in prices, denting investors’ portfolios. The Nifty Midcap index is down over 12% so far this year. But analysts at Axis Securities see opportunities in select midcap stocks. Here are their top picks that can give double-digit returns over a year.
Rupee rises 9 paise to 79.24 against US dollar in early trade
At the interbank foreign exchange, the rupee opened at 79.29 against the American dollar. In initial trade, the local currency witnessed a high of 79.24 and a low of 79.31 against the US dollar.
In the previous session, the rupee had closed at an all-time low of 79.33 against the US dollar.
Rupee to open around 79.25 as oil prices fall to $ 103 per barrel due to the impending recession talks. The US 10-year yield has also fallen, though the yield curve is inverted. The appreciation of the rupee is a good buy for the dollar as the dollar index is above 106.40. The fall is on only account of oil but a recession is being factored in and therefore appreciation of the rupee seems difficult for the moment. The Euro has fallen to two decades low as gas prices could be a bone of contention for the Euro Zone. We have the US jobless data today. Importers to buy the dips as flows may still not be back while Exporters can continue to ride the wave with a stop loss of 79.00.
– Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
ONGC, Vodafone Idea, IOC among most active stocks on NSE
Price as on 06 Jul, 2022 09:29 AM, Click on company names for their live prices.
Market View: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
It is important to watch whether these signals are one offs or will they sustain. With valuations reaching fair levels, investors can buy high-quality stocks in a calibrated manner. Stocks that FPIs sell like financials and IT are good segments to bet now.
Metals tank over 1%; most other indices trade on firm note
OPENING BELL: Sensex gains 250 points, Nifty above 15,850; Asian Paints rises 3%, Tata Steel sheds 2%
Asian stocks slide, dollar shines as recession fears deepen
Asian stocks slipped and the dollar stood by a two-decade high on the euro on Wednesday as investors’ fears deepened that the continent is leading the world into recession, while oil and European equity futures attempted to steady after a slide.
Q4 results today
Setco Automotive is among companies which will announce its quarterly earnings today.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 106 points, or 0.67 per cent, higher at 15,872, signaling that Dalal Street was headed for a positive start on Wednesday.
Tech View: Nifty50 sees selling at high; consolidation may continue
Nifty50 on Tuesday saw selling pressure as soon as it kissed the 16,000 mark. The index eroded entire intraday gains to eventually form a bearish candle on the daily chart, with a long upper wick, reflecting weakness at high. Analysts said the ongoing consolidation for the index may continue, with levels of 15,650-750 likely to offer some support to the index.
Oil claws back after heavy selloff as supply concerns return
Crude oil futures rose nearly 3% on Wednesday as investors piled back in after the heavy rout in the previous session, shifting their focus again to supply concerns even as worries about a recession mounted. Brent crude futures rose $2.82, or 2.7%, to $105.59 a barrel by 1222 GMT, after plunging 9.5% on Tuesday, the biggest daily drop since March.
Tokyo stocks open lower as recession fears emerge
Tokyo stocks opened lower Wednesday after a mixed close on Wall Street as lingering recession fears caused a rout on European bourses. The benchmark Nikkei 225 index was down 0.79 percent, or 209.58 points, at 26,213.89 in early trade, while the broader Topix index was down 0.69 percent, or 12.94 points, at 1,866.18.
S&P 500, Nasdaq end higher as investors eye economic path
The S&P 500 ended slightly higher on Tuesday as investors kept their focus on the growth trajectory of the U.S. economy, and the tech-heavy Nasdaq closed higher while the Dow slipped. The Dow Jones Industrial Average fell 129.44 points, or 0.42%, to 30,967.82, the S&P 500 gained 6.06 points, or 0.16%, to 3,831.39 and the Nasdaq Composite added 194.39 points, or 1.75%, to 11,322.24.
Rupee declines by 38 paise to 79.33 against US dollar
The rupee fell by 38 paise to close at its lifetime low of 79.33 against the US currency on Tuesday due to a stronger greenback overseas and unrelenting foreign fund outflows.
Sensex, Nifty on Tuesday
Frontline indices erased over 1 per cent gains and settled with minor cuts, with the 30 share pack Sensex, settling 100 points lower at 53,134. Its broader peer, Nifty50, ended the session near the 15,800 mark.