SGX Nifty up, global cues positive, Nifty outlook, HDFC-HDFC Bank merger; 5 things to watch out for on 5 July

BSE Sensex and NSE Nifty 50 were staring a positive start on Tuesday, as suggested by trends on SGX Nifty in early trade.

SGX Nifty up, global cues positive, Nifty outlook, HDFC-HDFC Bank merger; 5 things to watch out for on 5 July
The National Stock Exchange has not added any stock under its F&O ban list for 5 July 2022. Image: Pixabay

BSE Sensex and NSE Nifty 50 were staring a positive start on Tuesday, as suggested by trends on SGX Nifty in early trade. Nifty futures were ruling 64 points or 0.4 per cent up at 15,887.50 on Singaporean Exchange. In the previous session, S&P BSE Sensex gained 326 points or 0.62% higher at 53,234 while the NSE Nifty 50 index added 83 points or 0.53% to end at 15,835. Analysts say that indications are in favor of a further rebound in the index, thanks to fresh buoyancy in the banking and financial pack. “However, supportive global cues would continue to play a critical role in any sustained up move. We reiterate our cautious stance and suggest continuing with sector-specific trading approach,” Ajit Mishra, VP – Research, Religare Broking, said.

Key things to know before market opens on 5 July 2022

Global cues: Asian stock markets were seen trading higher in early trade on Tuesday. Japan’s Nikkei 225 gained 0.9%, while the Topix index rose 0.45%. Hong Kong’s Hang Seng index gained 1.18%, and Hang Seng Tech index added 1.6%. U.S. markets were closed overnight for a holiday.

HDFC-HDFC Bank Merger: The merger of HDFC and HDFC Bank has now received approval from the Reserve Bank of India (RBI). Now, HDFC and HDFC Bank await a nod from CCI and NCLT. Once all approvals are in place, HDFC Bank will become a 100% publicly owned institution, with HDFC’s 21% promoter holding getting extinguished. The merger would be the largest in Indian corporate history, creating a financial behemoth with a $169-billion market capitalisation.

FII, DII data: On Monday, foreign institutional investors (FIIs) offloaded Rs 2,149.56 crore worth of shares, whereas domestic institutional investors (DIIs) lapped up Rs 1,688.39 crore worth of shares 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 5 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: Nifty remained volatile before closing above the crucial resistance of 15800, said an analyst. “The index moved above the very short-term moving average indicating rising bullishness. The daily RSI is in the bullish crossover. Over the short term, the index may move towards 16000/16200. On the lower end, support is visible at 15700/15500,” Rupak De, Senior Technical Analyst at LKP Securities, said.

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