Top 10 things to know ahead of today’s market opening for the stock market

The market is anticipated to begin in the green as trend in the SGX Nifty hint to an initial gap-up of 101 points for the larger index in India.The Nifty50 rose 143 points to 16,133, creating a Doji-like pattern on the daily charts, while the BSE Sensex rose 427 points to end at 54,178.

The pivot charts suggest 16,069 and 16,005 as the Nifty’s primary support levels, respectively. The important resistance levels to watch out for on an upward movement of the index are 16,174 and 16,214.

As investors shifted their focus to US stocks after the Federal Reserve hinted at a more moderate timetable of interest rate rises, Wall Street indexes closed higher on Thursday, with the S&P 500 and Nasdaq marking their fourth consecutive higher finishes.

After a dramatic selloff in the first half of the year due to a rise in inflation, the situation in the Ukraine, and the Fed’s decision to abandon its easy-money policy, US stock markets have stabilised in July.

The Nasdaq Composite increased 259.49 points, or 2.28 percent, to 11,621.35, the S&P 500 increased 57.54 points, or 1.50 percent, to 3,902.62, and the Dow Jones Industrial Average up 346.87 points, or 1.12 percent, to 31,384.55.

Asian Markets

The opening of the Asia-Pacific markets on Friday was positive as investors anticipated the publication of the US employment data for June. The Topix index increased by 0.34 percent, while the Nikkei 225 increased by 0.54 percent. S&P/ASX 200 in Australia increased by 0.51 percent. The Kospi in South Korea increased 0.91 percent.

Axis Nifty

The larger Indian index is expected to begin with a rise of 101 points, according to trends on the Singapore Exchange Nifty. On the Singaporean market, the Nifty futures were trading at approximately 16,234 levels.Oil falls as investors get conflicted about supply concerns and recessionary fears.

Following a recovery in the previous session, oil prices fell in early Asian trading on Friday as investors continued to be conflicted between concerns over dwindling global supply and concerns that a recession may reduce oil consumption.

After an almost 4% increase on Thursday, Brent crude futures dropped 39 cents, or 0.4 percent, to $104.26 a barrel at 0013 GMT. Following a day in which it ended 4.2 percent higher, US West Texas Intermediate crude fell 35 cents, or 0.3 percent, to $102.38 per barrel.

Fed hawks predict a decrease in US rate increases after July

Despite downplaying the possibility that increased borrowing rates may cause the US to enter a recession, two of the Federal Reserve’s most outspoken hawks indicated on Thursday that they would back another 75 basis-point interest rate hike later this month but a change to a slower pace after that.

TCS’s consolidated profit might increase by 10% if Q1 sales grows by 15% to 16%.

Tomorrow marks the beginning of the fiscal year 2023’s first earnings season, and as has become traditional in recent quarters, Tata Consultancy Services (TCS), the largest supplier of IT services in India, will lead off the bat once again.

The secular demand climate, robust deal wins, and mergers & acquisitions are expected to support a healthy on-year revenue increase for the Indian IT services sector. They anticipate stable sequential increase in USD-reported sales, although for a few businesses in the industry, unfavourable cross-currency and seasonality may have an impact.

Results from the 8th and 9th of July

Prior to their July 8 quarterly reports, companies including Tata Consultancy Services,  Kohinoor Foods, Brahmaputra Infrastructure MMTC, and Spectrum Foods will be scrutinised.

The quarterly scorecards from Avenue Supermarkets, Gradiente Infotainment, and Scandent Imaging will be made public on July 9.

Data FII and DII

According to preliminary data available on the NSE, foreign institutional investors (FIIs) have sold shares worth Rs 925.22 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 980.59 crore on July 7.

In the past six months, Indian cryptocurrency exchanges saw a monthly trade volume decline of more than 75%.

Top cryptocurrency exchanges including WazirX, CoinDCX, Bitbns, and Zebpay, among others, lost more than 70–75 percent of their typical monthly trading volumes in the first half of 2022. The problem has gotten worse after the budget’s announcement of a 1 percent TDS (tax deducted at source) on virtual digital assets (VDAs) on July 1.

While industry participants and experts expressed optimism, describing it as a cyclical occurrence, they cautioned that smaller exchanges might be at risk of failing, while bigger ones could need to reduce costs by eliminating employees.

The monthly trading volume on WazirX, which was acquired by Binance, the largest cryptocurrency exchange by volume, in November 2019, fell by 75.18%, from $38.98 million in January to $9.6 million in June 2022, according to data obtained from CREBACO Global, a company that conducts cryptocurrency research and analysis.

Zebpay’s monthly trade volumes decreased by 72.83% from $10.67 million in January to $2.90 million in June, while Bitbns’ volumes decreased by more than 50% from $15.39 million to $7.33 million within the same time period.

RBI initiatives may not have much of an impact on the currency and are unlikely to result in significant forex inflows: Experts

Experts and economists told Moneycontrol that the Reserve Bank of India’s (RBI) attempts to increase foreign exchange inflows may not result in a significant infusion of foreign money into the nation or have a significant upward influence on the exchange rate.

Vikas Bajaj, head of currency futures at Kotak Securities, stated that such ad hoc interventions had minimal effect during previous instances of rupee devaluation. We must acknowledge that the rupee is having issues with its capital account (outflows) as well as its current account (growing trade deficit), against a backdrop of favourable external conditions for the dollar and tightening banking conditions.