Positivity In The Global Markets; Eyes On RBI Interest Rate Decision - Share Market Today

Here are some of the major updates that could move the markets today:

Stocks

Hindustan Copper resumed mining operations at the Surda mine in Ghatshila, Jharkhand on June 7. The resumption of operations is after the renewal of the lease by the Government of Jharkhand and obtaining the required Environment Clearance from the Ministry of Environment.

Wockhardt has appointed Deepak Madnani as the Chief Financial Officer with immediate effect on June 7. The company has taken this decision after Pramod Gupta has conveyed that on account of his health reasons he will not be able to continue as the Chief Financial Officer.

Life Insurance Corporation of India bought additional two lakh equity shares in Zee Entertainment Enterprises via open market transactions on June 6. With this, LIC's stake in the company stands increased to 5.008 percent, up from 4.988 percent earlier.

Sharika Enterprises has received a purchase order from Voith Hydro Private Limited. The company will supply 220KV XLPE cable package for Voith Hydro Naitwar Mori project for a total value of Rs 4.6 crore.

RITES, the transport infrastructure consultancy and engineering company signed a memorandum of understanding (MoU) with Grands Trains.

Cineline India informed exchanges that the board of directors approved the issuance of up to 27 lakh warrants for Rs 35.10 crore to promoters by way of a preferential issue. 

What to Expect? 

NIFTY opened with a gap-down at 16,487 and moved further down. Support was taken at 16,350 followed by an up-move and consolidation. NIFTY ended the day at 16,406, down by 153 points or 0.92%.

BANK NIFTY opened with a gap-down at 35,125. The index faced resistance at 35,150 and fell to 34,850. The index managed to close just at the psychological level of 35K, at 34,996, down by 314 points or 0.89%.

IT moved down by more than 1.5%.

The US markets moved up with momentum. The  European markets moved down.

The Asian markets are trading higher with NIKKEI trading almost 1% higher. The U.S. Futures are trading slightly in the red and the European futures are trading slightly higher.

SGX NIFTY is trading at 16,500 indicating a gap-up opening.

NIFTY has supports at 16,500, 16,450, 16,400 and 16,365. We can expect resistances at 16,560, 16,600, 16,700 and 16,800.

BANK NIFTY has supports at 34,850, 34,500 and 34,250.  Resistances are at 35,000, 35,250 and 35,500.

NIFTY has the highest call OI build-up at 17,000 followed by 16,800. The highest put OI build-up is at 16,000.

BANK NIFTY has the highest call OI build-up at 36,000 and the largest put OI build-up is at 35,000.

INDIA VIX is at 20.5.

Foreign Institutional Investors net sold shares worth Rs 2,300 crores. Domestic Institutional Investors net bought shares worth Rs 1,300 crores. 

16,500 has been finally broken today. What next? Rejection at 16,450 is an ideal case of a support level acting as resistance once broken. We will have to see if there is a follow-up on the downside as 16,500 is broken. But look at the global positivity now. 

All eyes are on RBI Monetary Policy Committee decision on interest rate hike, to be announced at 10 AM. It is expected that there will be a rate hike not exceeding 50 basis points. Anyway, the market will be extremely volatile as seen on the previous MPC days.

The commentary after the rate announcement is crucial. The current RBI inflation projection for FY23 is 5.7%. We have to see if RBI revises this. Also, the Governor’s view on future rate hikes also is important.

There are positive sentiments now with the US markets closing strong, NIKKEI moving higher as the GDP data came out better with 0.5% contraction against an expected 1% contraction and the Australian markets moving higher despite a higher hike than expected.

If you take a zoom out, you can notice that there is a mid term down-trend in the market and the rally we saw last week was just a short term advance. The index was unable to break the resistance around 16,800-17,000 zone. This keeps the bears alive to go for another round of selling. However, the interest rate decision will be crucial.

I will be watching 16,350 on the downside and 16,500 on the upside.

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