SGX Nifty up: US Fed hikes rates, global markets, Q1 results, Nifty outlook; key things in focus on F&O expiry

BSE Sensex and NSE Nifty 50 were likely to start in green on Thursday, a day of monthly F&O expiry, as suggested by trends SGX Nifty.

SGX Nifty up: US Fed hikes rates, global markets, Q1 results, Nifty outlook; key things in focus on F&O expiry
Analysts say that India has been in a rally during the last one and half months assuming that much is factored in the price. Image: Pixabay

BSE Sensex and NSE Nifty 50 were likely to start in green on Thursday, a day of monthly F&O expiry, as suggested by trends SGX Nifty. SGX Nifty 50 Index Futures for July were ruling at 16,761.50, up 99.50 points or 0.6 per cent on Singaporean Exchange. Analysts say that India has been in a rally during the last one and half months assuming that much is factored in the price. “The market has not factored in a recession as valuation continues to trade marginally above the long-term trend. Value buying should be the essence of investment till the risk of a recession subsides,” Vinod Nair, Head of Research at Geojit Financial Services, said.

Key things in focus before market opens on Thursday 28 July

Global markets: Asian stock markets were mostly higher on Thursday following the U.S. Federal Reserve’s decision to raise rates by 75 basis points to fight inflation, and rising fears of recession. The Kospi in South Korea advanced 0.66%, while the Kosdaq gained 0.32%. In overnight trade on Wall Street, the Dow Jones Industrial Average rose 436.05 points, or 1.4%, the S&P 500 advanced 2.62%, and the Nasdaq Composite popped 4.06%.

Q1 results today: BSE-listed companies such as Dr Reddy’s Laboratories, Nestle India, SBI Life Insurance Company, Shree Cement, Jubilant FoodWorks, Vedanta, Bajaj Finserv, Punjab National Bank, Mahindra & Mahindra Financial Services, PNB Housing Finance, SBI Cards and Payment Services, TVS Motor Company, Shriram Transport Finance, Chalet Hotels, Equitas Small Finance Bank, CMS Info Systems, GHCL, AAVAS Financiers, Intellect Design Arena, Dr Lal PathLabs, Motilal Oswal Financial Services, Nippon Life India Asset Management, NIIT, NOCIL, RITES, Sona BLW Precision Forgings, TTK Prestige, and Westlife Development will be in focus ahead of June quarter earnings on Thursday, 28 July 2022.

FII and DII data: On Wednesday, foreign institutional investors (FIIs) sold shares worth Rs 436.81 crore, whereas domestic institutional investors (DIIs) lapped up shares worth Rs 712.03 crore on a net basis in Indian equity market. Two stocks – Delta Corp, and Indiabulls Housing Finance – are under the NSE F&O ban list for July 28. 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: Technical analysts says markets may see bouts of volatility ahead of the monthly F&O expiry tomorrow. “Technically, after the correction in the last two sessions, the Nifty took support near 16450 and reversed the trend. It also formed a promising Bar Reversal bullish candle on daily charts. The texture of the chart indicates continuation of the uptrend wave in the near future. For the trend following traders, 16550 would be the trend decider level, and above the same, the index could hit the level of 16750-16800. On the flip side, below 16550, any uptrend would be vulnerable and the index could retest the level of 16450-16400,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said.

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