Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 were likely to see gap-up opening on Wednesday, a day ahead of weekly F&O expiry. Nifty futures were up 41.50 points or 0.3 per cent at 15,807.50 on Singaporean Exchange. In the previous session, S&P BSE Sensex shed 100.42 points or 0.19% to settle at 53,134 while the NSE Nifty 50 index was down 24.5 points or 0.15% to close at 15,810. Analysts say that nervousness ahead of the US Fed meeting minutes as well as expectation of weakness in the upcoming results season made investors to book out from the intraday gains. Even Indian rupee touched a new record low adding to the overall weakness in the market. “Markets would continue to track global cues as well as pre-quarterly updates in the near term. The result reason which would be a key driver for the market would start with TCS announcing its results on Friday,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.
Key things to know before market opens on Wednesday, 6 July 2022
Global cues: Asian stock markets were seen trading in red in early trade on Wednesday despite Wall Street recovering most of its losses by the close. Moreover, with recession fears mounting, crude oil tumbled $10 per barrel on Tuesday. Japan’s Nikkei 225 fell about 1% and the Topix index slipped 1.09%. The S&P 500 ended slightly higher on Tuesday. The Dow Jones Industrial Average fell 129.44 points, the S&P 500 gained 6.06 points, and the Nasdaq Composite added 194.39 points.
Oil tumbles 9% on recession fears: Oil plummeted about 9% on Tuesday in the biggest daily drop since March on growing fears of a global recession and lockdowns in China that could slash demand, according to Reuters. On Wednesday morning, however, crude oil did recover some losses. Brent Crude was trading at $105.59 per barrel while WTI crude was at $101.95 per barrel. WTI Crude had slipped below $100 mark on Tuesday.
FII and DII data: On Tuesday, foreign institutional investors (FIIs) turned net buyers for the first time since May 30. FIIs bought shares worth Rs 1,295.84 crore, whereas domestic institutional investors (DIIs) turned net sellers for the first time since April 11. DIIs offloaded shares worth Rs 257.59 crore on a net basis in Indian equity market.
Stocks under F&O ban: The National Stock Exchange has not added any stock under its F&O ban list for 6 July 2022. If the open interest of any stock crosses 95% of the MWPL (market-wide positions limits), all F&O contracts of that stock enter a ban period.
Nifty outlook: The short-term trend of Nifty seems to have reversed down from the highs and the current chart pattern indicates the possibility of further weakness in the short term, said an analyst. “One may expect Nifty to slide down to 15600-15500 levels again in the near term,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.