Ahead of share market: 7 things to know before opening bell on Wednesday

Ahead of share market: 7 things to know before opening bell on Wednesday

The stock market is expected to react to announcements Prime Minister Narendra Modi made on Tuesday as well as economy numbers released today

The Indian benchmark equity indices - Sensex and Nifty - ended marginally lower on the last trading session of June amid rising uncertainty around economic recovery. Weakness in global equities also weighed on the indices. Sensex closed 45 points lower at 34,915, while NSE Nifty fell 10 points to 10,302 today. On Monday, Sensex had closed 209 points lower at 34,961 and NSE Nifty 70 points down at 10,312.

Here are 7 things to look forward in tomorrow's trade

PM Modi's speech: The stock market is expected to react to Prime Minister Narendra Modi's speech and the announcements made by him. "In spite of trading positive for most part of the day, the benchmark indices gave up its gains and ended flat with a negative bias. The markets were impacted by the uncertainties surrounding the PM's address to the nation. Irrespective of this, many Indian cities are extending their lockdowns in the face of unabated growth in virus infections, which has added to the uncertainty surrounding economic recovery. The market direction for tomorrow may also largely be guided by the content of the PM's address and global cues," Vinod Nair, Head of Research, Geojit Financial Services, said.

Auto sales data: Automakers will start reporting monthly sales numbers from Wednesday. After recording poor numbers in April and May, sales are expected to show recovery in June.

PMI data: Manufacturing Purchasing Managers' Index (PMI) data will be released on June 1.

Core sector output: The output of eight core infrastructure industries shrank by 23.4 per cent in May due to the coronavirus-induced lockdown. The eight core sectors had expanded by 3.8 per cent in May 2019. The impact of this weak data is expected in tomorrow's trade.

Fiscal deficit: India's federal fiscal deficit in the first two months through May stood at Rs 4.66 trillion ($61.67 billion), or 58.6 per cent of the budgeted target for the current fiscal year. It's to be seen how investors and traders react on Wednesday.

FOMC minutes: The investors will also keep an eye on the US Federal Open Market Committee Meeting (FOMC) minutes for the June 9-10 meeting. The minutes will be released on Wednesday night.

Coronavirus cases: Coronavirus cases are constantly rising in the country. India reported 418 deaths and 18,522 new coronavirus cases in the last 24 hours, the health ministry said on Tuesday. With this, positive cases in India stand at 5,66,840, including 2,15,125 active cases, 3,34,822 recoveries and 16,893 deaths.

Technical insight

"Markets will take cues from the PM speech on further unlocking of the economic activities amid the rising cases and we'll see the reaction in the early trade on Wednesday i.e. July 1. Besides, the auto sales data will also be closely watched by the participants to access the pace of recovery in the economy. Nifty has been hovering within 10,200-10,400 for the last four sessions and either side break may trigger the next directional move. Meanwhile, limit your trades and use dips to accumulate quality stocks," Ajit Mishra, VP Research, Religare Broking, said.

"Long term charts like weekly and monthly time frame are intact with near term uptrend in the market. The long term study signals that any weakness in the Nifty could be a buying opportunity in the near term. A decisive move below the immediate support of 10200 could find a strong lower base around the 10K mark. A sustainable move above the resistance of 10400 could bring bulls back into action and could lead towards 10550-10600 levels in the near term," Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

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