Share Market Today | May 02, 2024

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Synopsis:

Explore the latest market updates including Jindal Stainless Limited’s ₹5,400 crore investment plan to expand melting capacity to 4.2 mtpa, YES Bank’s collaboration with ANQ to launch Pi and Phi credit cards, 7.3% YoY rise in ⁠Coal India's April Production at 61.8 mt, reduction in windfall tax on crude oil to ₹8,400 from ₹9,600/tonne from May 1, and more. Plus, get detailed insights on FII DII data, option chain analysis, and outlook on global and Indian share markets.

Latest Market News

  1. The US Federal Reserve opts to keep interest rates unchanged. However, it signals potential rate cuts in the future.
  2. Jindal Stainless unveils a ₹5,400 crore investment plan, targeting a significant expansion of its melting capacity to 4.2 million metric tonnes per annum.
  3. YES Bank collaborates with ANQ to launch two new credit cards, Pi and Phi, diversifying its product offerings.
  4. Coal India reports a 7.3% production increase in April, reaching 61.8 million metric tonnes year-on-year, reflecting sectoral growth.
  5. The government reduces the windfall tax on crude oil to ₹8,400 per tonne from May 1, balancing fiscal concerns and industry interests.
  6. FIIs buy equities worth ₹1,071.93 crore, while DIIs buy ₹1,429.11 crore on Tuesday.

Detailed Global Market Insight: US and International Stocks, Other Asset Classes, and Asian Market

US Share Market News

1. Performance Overview:

  • The S&P 500 fell Wednesday as the Federal Reserve kept rates steady, dampening expectations of hikes, after a day of fluctuating between gains and losses.

2. Economic Indicators:

  • The Federal Reserve decided to keep interest rates steady between 5.25% to 5.5%, hinting they might stay higher for a while. Powell suggested the next move could be a rate cut, but the timing is uncertain due to recent high inflation.
  • This week, all eyes are on the April nonfarm payrolls data, out Friday, likely influencing interest rate forecasts.

3. Sector-Specific Movements:

  • On Wednesday, the S&P 500 dropped 0.3% to 5,018.39, the NASDAQ Composite fell 0.3% to 15,605.48, and the Dow Jones Industrial Average rose 0.2% to 37,903.29 points.

4. Corporate Earnings:

  • Amazon climbed 2% after the tech giant's strong first-quarter earnings surpassed expectations, driven by increased demand for its AI-powered cloud services despite a revenue forecast miss.
  • Apple Inc. is set to announce its earnings after Thursday's close. Anticipation surrounds Apple's strategy for artificial intelligence, overshadowing expected continued weakness in iPhone sales.

Other Asset Classes

1. Treasury Yields:

  • US Treasury yields dropped on Wednesday as investors reacted to the Fed's decision to keep rates unchanged and Jerome Powell's assurance of no rate hike next month. The 10-year Treasury yield fell by 5 basis points to 4.632%, while the 2-year Treasury yield decreased by nearly 9 basis points to 4.96%.

2. Currency:

  • On Wednesday, the dollar dropped because the Federal Reserve hinted it might lower borrowing costs eventually. They're concerned about low inflation and finding it hard to stabilise the economy. The dollar index ended at 105.7 levels.

3. Commodities:

  • Gold prices rose Wednesday after the US Federal Reserve held interest rates steady, sparking demand as the dollar and US Treasury yields dipped. Spot gold climbed 0.9% to $2,306.80 per ounce, while US gold futures gained 0.4% to $2,312.70.
  • Oil prices in Asia rebounded from two-month lows on Thursday due to a weakening dollar after a Federal Reserve meeting. However, gains were limited by increased US inventories and production. Brent crude rose to $83.71 per barrel, and West Texas Intermediate reached $78.73 per barrel.

Asian Markets

1. General Trends:

  • Asia-Pacific stock markets dipped Thursday morning after the US Federal Reserve kept interest rates steady. Attention is on the Japanese yen, which had a turbulent week and is now trading at 155.83 against the US dollar.

2. Specific Index Performance:

  • Japan’s Nikkei dropped by 0.70% early today, and the broader Topix index lost 0.4%.
  • South Korea's main index, the Kospi, slipped by about 0.1%, and the Kosdaq, also dipped 0.1% in morning trading.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty suggests a flat to positive opening. The Nifty spot is likely to consolidate in the range of 22530-22730 amid high volatility on account of the Nifty weekly expiry.

2. Nifty Short-Term Outlook:

  • Nifty hit a fresh all-time high of 22783 but saw profit booking, closing slightly lower at 22604 (-0.17%). Bank Nifty closed at 49396 (-0.06%) after volatile trading.
  • A bearish candle with a long upper shadow suggests profit booking before a key event. For further upward movement, Nifty needs to surpass Tuesday's high (22783). However, failure may lead to consolidation between 22800-22300 levels.
  • Short-term support for Nifty is at 22000-22200, marking the lower band of the rising channel since Jan 2024 and 61.8% retracement of the recent upswing (21777-22476).

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22680, followed by 22750 levels. Conversely, downside support is located at 22560, followed by 22510.
  • Bank Nifty: Intraday resistance is positioned at 49670, followed by 49800, while downside support is found at 49250, followed by 49030.
  • Fin Nifty: Intraday resistance is positioned at 21920, followed by 22000, while downside support is found at 21780, followed by 21700.

Derivative Market Analysis

1. Nifty:

  • Nifty sharply reversed on Tuesday, closing at -0.17%. Weekly options imply a trading range of 22500 to 22800, with notable put unwinding at 22500 and 22550 strikes. Calls were written above 22700 in response to the late sell-off. 
  • Today, support could be seen at 22500, and resistance at 22800. Put Call Ratio closed at 1.11, indicating bearish sentiment, reinforced by today's expiry PCR at 0.98, suggesting a bearish dominance despite the overall bullish trend.

2. Bank Nifty:

  • Banknifty hit a new high but faced selling pressure. The highest call OI stands as resistance at 49,500 with the highest put OI at the same level portraying confidence in an up move. Banknifty Synthetic Future trades around 49400.
  • Despite a late sell-off, bullish sentiment remains, but signs suggest a possible retracement. However, stay bearish for the day unless Banknifty stays above 49500 and put OI decreases. Maintain a bullish view if it holds above 49500 and call writers start to exit positions. 

Stay on top of the latest market news with Bajaj Broking’s insights. Our point-to-point expert analysis digs deep into the surface, empowering you with a unique perspective on the events in the domestic as well as the global stock market. Get all the current share market news, including US share market updates in one place and make wise investment decisions.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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