Before the Indian stock market opens for trading on Tuesday, July 02, 2024, here’s everything you need to know: The key indices for Indian equities are probably going to open quiet on Tuesday amid positive signals from their international counterparts.
GIFT Nifty futures quoted at 24,245 levels at 7:00 AM, suggesting a potentially quiet start to Tuesday’s trading.
Investor interest in the Adani Group of Companies’ shares may increase in light of Hindenburg Research’s claims that Sebi provided “surreptitious aid” to the Adani Group. This occurred after the market regulator served the latter with a show-cause notice for alleged infractions of Indian market standards. SEE MORE
worldwide attitude
The US NASDAQ increased 0.8% overnight, driven by a sell-off in Nvidia and Tesla stock. The Dow Jones gained 0.1%, and the S&P 500 increased by 0.3%. For additional hints about interest rates, the attention will be on Federal Reserve Chair Jerome Powell’s speech later tonight.
Additionally, prior to the trading holiday on July 4, expectations from the Fed’s June meeting minutes and the important payrolls data are expected to control trade sentiment.
The yield on US 10-year bonds surged to 4.47 percent. Among commodities, Brent Crude Oil surged to $86.75 per barrel, while Gold futures increased to $2,340 per ounce.
This morning, the Asia-Pacific region’s markets showed a mixed trend. Japan’s Nikkei quoted at the conclusion of business the day before. The benchmarks for Australian equities were also flat. However, Kospi had a 0.8% decline.
Flows II and DII
On Monday, stocks were net sold by foreign institutional investors (FIIs) for a total of Rs 426 crore. Domestic institutional investors (DIIs), on the other hand, were net purchasers of shares valued at Rs 3,917 crore.
Within the derivatives market, the FIIs index long-short ratio stayed stable at almost 5:1, indicating that for every short position in the index futures, there are almost 5 long bets. Long positions in the FIIs net index increased to 82.62%, while short positions decreased to 17.38%.
For the sixteenth consecutive trading session, FIIs net bought index futures on Monday. FIIs increased their index futures net long positions by 3,190, investing a total of Rs 263.90 crore. While net selling 2,765 Nifty futures contracts, FIIs primarily invested in Bank Nifty (3,657 contracts) and MidCap Nifty (2,360 contracts).
Conversely, retail investors and DIIs kept their net short position in index futures. The former accounted for 65.86 percent of index shorts, while holding 61.64 percent of trades in index shorts.
Tuesday, July 02, trading plan – Is it the right time for you to purchase or sell in the Nifty, Bank Nifty? Here’s what professionals advise:
Ashwin Ramani works for SAMCO Securities as a technical and derivatives analyst.
Significant put writing occurred on the 24,000 & 24,100 Strike, which drove the Nifty’s consistent upward trend on Monday. The 24,000 Strike is the maximum put open interest for the Nifty. This will serve as Nifty’s initial support level. At the 24,200 strike, the put writers (62K contracts) are trailed by the call writers (1.62 lakh contracts), and the option activity during this strike will offer hints regarding the future path of Nifty.
The call (Bears) and put (Bulls) writers engaged in a furious struggle on the Bank Nifty during the 52,500 and 52,600 strikes. But authors were forced out by the 52,900 and 53,000 Strike, which strengthened the opposition at 53,000. At the 52,500 strike, the put writers (1.43 lakh contracts) have a little advantage over the call writers (1.13 lakh contracts), and the option activity during this strike will give clues about the future direction of Bank Nifty.
Om Mehra, SAMCO Securities Technical Analyst
The opening and low prices of the Nifty were essentially unchanged on Monday. The index has increased, but the movement has been less vigorous. The hourly chart’s upper Bollinger band, which is located at 24,220, acts as immediate resistance. At 24,300, there is another level of resistance. In contrast, the Nifty may drop to the 23,900–23,850 range if it closes below 24,050.
In the daily time period, the Bank Nifty made a bullish candle, but it moved below the regression line. The hourly MACD shows that the bullish trend has somewhat slowed down. The 51,000 level is where the 20-day moving average (DMA) is situated. In the upcoming session, Bank Nifty can either consolidate or fluctuate between the 52,200–53,200 area.
Asit C. Mehta Investment Intermediates’ AVP of Technical and Derivatives Research, Hrishikesh Yedve
Technically, the 24,150–24,200 levels are where the Nifty is encountering resistance. In the immediate run, the rise may reach levels of 24,500–24,600 if the index remains above 24,200.
The short-term trend line resistance is still being traded below by the Bank Nifty. Therefore, the 53,000–53,200 levels will serve as a barrier for Bank Nifty in the near future. The rally may continue towards 54,000 if the index holds over 53,200.
Senior Technical Analyst at LKP Securities, Rupak De
On the hourly time period, the Bank Nifty has formed a lower top, indicating waning bullishness. At 52,500, immediate support is apparent. A significant decline below 52,500 might start a correction in the banking industry. The index may, however, return to higher levels if it remains over 52,500. In the immediate term, it may go in the higher range towards 52,800/53,000.
With the index holding above 24,000 in the opening trading and a subsequent climb towards 24,150, the Nifty stayed in the hands of the bulls. The put writers’ persistent short build-up has kept the market from collapsing.
As long as the trend stays over 24,000, it may continue to be strong in the future. A correction towards 23,850/23,700 could occur if there is a decline below 24,000. However, the index may climb towards 24,500 if there is a strong move over 24,200.
today’s new listings
On Tuesday, there will be four new stock listings—three SMEs and one on the main market. According to quotes from the grey market premium, Allied Blenders and Distillers, the main board IPO, is expected to launch at a 20% premium.
Apart from that, shares of Petro Carbon and Chemicals were reported to be selling for up to 50% more in the grey market, while Divine Power IPO shares were discovered to be selling for a 150% premium. On the other hand, the Money Fair SME was providing quotes with a 6% premium.
primary market report
Subscriptions for the Rs. 1,952 crore IPO of Emcure Pharma and Rs. 745 crore IPO of Bansal Wire will open today. The price range of the former share sale is between Rs 243 and Rs 256 per share, while the latter is offering stocks between Rs 960 and Rs 1,008.
Nephro Care India’s initial public offering (IPO) will close for subscription on Tuesday. So far, the issue has received over 127 subscriptions.