Important Information For July 18 Stock Trading Strategy

Indian benchmark indices broke the four-day losing streak to end on a positive note on July 15, supported by buying in the auto, capital goods and FMCG names
Important Information For July 18 Stock Trading Strategy

The benchmark indices are likely to open in green on Monday as trends on SGX Nifty indicate a positive start for the broader index in India, with a gain of 164 points or 1.02 percent. 

The Nifty futures were trading around 15,909 level on the Singaporean Exchange at 7:30 IST.

Indian benchmark indices broke the four-day losing streak to end on a positive note on July 15, supported by buying in the auto, capital goods and FMCG names. 

The BSE Sensex climbed 345 points to 53,761, while the Nifty50 rose more than 100 points to 16,049 and formed a Hammer pattern on the daily charts, which is generally called as a trend reveral pattern.

The broader space also followed the suit, with the Nifty Midcap 100 index rising 0.77 per cent and Smallcap 100 index climbing 0.34 per cent. About 1,031 shares advanced, against 892 declining shares on the NSE.

Here are key things to know before the market opens on Monday:

Wall Street ended higher on Friday:

US stocks closed sharply higher on Friday, ending several days of sell-offs with a rebound fueled by upbeat earnings, strong economic data and easing fears of a larger-than-expected interest rate hike by the Federal Reserve.

All three major US stock indexes posted solid gains, with financials leading the charge in the wake of Citigroup Inc's earnings beat. This reversed Thursday's sell-off driven by downbeat guidance from rivals JPMorgan Chase and Morgan Stanley.

The S&P 500 and the Dow both snapped five-day losing streaks, and all three indexes ended below last Friday's close.

The Dow Jones Industrial Average rose 658.09 points, or 2.15%, to 31,288.26, the S&P 500 gained 72.78 points, or 1.92%, at 3,863.16 and the Nasdaq Composite added 201.24 points, or 1.79%, at 11,452.42.

Asian markets early morning cues

In early morning deals on Monday session, the Japanese Nikkei is up 0.54 per cent, Hong King's Hang Seng is down 2.19 per cent whereas Chinese Shanghai is up 0.22 per cent.

FII DII data

Foreign institutional investors (FIIs) have net sold Rs 1649.36 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 1059.46 crore worth of shares on July 15, as per provisional data available on the NSE.

Crude oil prices

Oil prices fell $1 in early trading in Asia on Monday, cutting into gains from Friday, as attention turned back to rising COVID-19 cases in China and the prospect of lockdowns again reducing fuel demand in the world's top oil importing nation.

US West Texas Intermediate (WTI) crude CLc1 futures for August delivery dropped $1.54, or 1.6%, to $96.05 a barrel at 0055 GMT, after climbing 1.9% on Friday.

Rupee on Friday

The rupee recovered 8 paise to settle at 79.91 against the US currency on Friday, tracking heavy buying in domestic equities and weakness in the greenback overseas. Besides, fresh foreign capital inflows also supported the local unit, forex dealers said.

At the interbank foreign exchange market, the local currency opened at 79.95 and witnessed an intra-day high of 79.82 and a low of 79.96 against the US dollar in the day trade.

Stocks to watch on Monday

YES Bank: The bank sealed a deal with JC Flowers to set up an asset construction company (ARC), to which the private sector lender will sell Rs 48,000 crore of legacy bad loans through the Swiss challenge method to become a ‘zero-NPA’ bank.

Tata Steel: Tata steel has planned capital expenditure (capex) of Rs 12,000 crore on its India and Europe operations during the current financial year.

HDFC Bank: HDFC Bank reported a 19 per cent YoY increase in its standalone net profit at Rs 9,196 crore in Q1FY23, after providing Rs 2,984 crore for taxation. The bank’s net interest income, rose 14.5 per cent to Rs 19,481.4 crore.

Vedanta: Vedanta is seeking shareholder approval for related-party transactions worth Rs 8,661 crore in ongoing financial year. The company said these transactions are needed to achieve synergies and economies of scale, and have been valued by an independent valuer.

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