Share Market Today | GIFT Nifty Positive Ahead of Election Results

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Synopsis:

Today’s latest market updates include RVNL’s ₹440 crore project, ZEE Entertainment’s fundraising plan, Dr Reddy’s new facility in Hyderabad, a 41% YoY rise in MOIL’s manganese ore production in May, 7% rise in M&M disbursements to ₹4430 Cr, plus other global market news.

Latest Market News

  1. RVNL won a ₹440 crore project from South Central Railway.
  2. ZEE Entertainment is considering raising funds through share issuance and QIP.
  3. Dr Reddy's Laboratories' Aurigene Pharmaceutical Services opened a biologics facility in Hyderabad for process development and clinical-scale manufacturing.
  4. MOIL's manganese ore sales rose 41% year-on-year in May, reaching 2.15 lakh tonnes.
  5. Biocon received USFDA approval for its antifungal drug.
  6. M&M Financial's May disbursements increased 7% year-on-year to ₹4,430 crore.
  7. US May ISM Manufacturing PMI was 48.7, below the estimated 50.
  8. FIIs bought ₹6,850.76 crore and DIIs bought ₹1,913.98 crore in equities yesterday.

In-Depth Market Insights: Global Outlook, Derivatives & More

US Share Market News

1. Performance Overview:

  • On Monday, the S&P 500 and Nasdaq edged up in a volatile session, despite weak manufacturing data and a brief trading halt caused by a glitch on the NYSE.
  • The two major US indices recovered from earlier losses, while the Dow fell. Technology stocks gained the most, while energy stocks lagged.

2. Economic Indicators:

  • Traders now see a 59% chance of the Fed cutting rates in September, up from 53% before the ISM data release, according to the CME's FedWatch.
  • This week, attention is on the key nonfarm payrolls data, as the labour market is another major factor for the Fed's rate decisions.
  • The JOLTS job openings report is due on Tuesday. The Fed is also expected to keep rates steady at next week's meeting.

3. Sector-Specific Movements:

  • The Dow Jones Industrial Average dropped 115.29 points (0.30%) to 38,571.03. The S&P 500 increased by 5.89 points (0.11%) to 5,283.40. The Nasdaq Composite rose 93.66 points (0.56%) to 16,828.67.

Other Asset Classes

1. Treasury Yields:

  • On Monday, the US Treasury yields fell due to weak manufacturing data and anticipation of a key jobs report at the end of the week. The yield on the 10-year Treasury dropped nearly 12 basis points to 4.394%.

2. Currency:

  • The dollar hit a three-week low after data showed the US economy slowing with weaker-than-expected manufacturing and construction spending. This suggests the Federal Reserve may start cutting interest rates later this year. The dollar index fell 0.4% to 104.14.

3. Commodities:

  • US crude oil prices dropped over 3% on Monday after OPEC+ announced plans to phase out production cuts totalling 2.2 million barrels per day. The WTI July contract fell 3.6% to $74.22 a barrel. The Brent August contract dropped to $78.36 a barrel, down $2.75 or 3.39%.
  • Gold prices rose as weak US economic data increased expectations of Federal Reserve interest rate cuts later this year, lowering the dollar and bond yields. Spot gold was up 0.9% at $2,348.06 per ounce.

Asian Markets

1. General Trends:

  • On Tuesday, the Asian stocks witnessed a soft start, following a strong kickoff to June.

2. Specific Index Performance:

  • Japan’s Nikkei 225 began the day down by 0.4%, with the broader Topix slipping 0.14%.
  • South Korea’s Kospi lost 0.28%, while the smaller-cap Kosdaq edged down 0.09%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty indicates a good start for the Indian market. If Nifty stays above yesterday's high of 23338, we may see it climb towards 23500 during today's session.

2. Nifty Short-Term Outlook:

  • Benchmark indices surged at the start of the week with Nifty hitting a record high of 23,338 and closing at 22,264, up by 3.25%. Bank Nifty outperformed, closing at 50,979, up by 4.07%. All 13 sectoral indices showed gains, with financial services, oil and gas, and power sectors leading. Nifty midcap and small-cap indices closed higher by 3.3% and 2.5% respectively.
  • The index formed a high wave candle with a bullish gap, signalling continued upward momentum, while volatility may persist due to the union election outcome.
  • Nifty has been trading in a rising channel since the start of CY 2024, with current positioning near the upper band at 23,300-23,500. A breakout above this level could push it towards 23,800, while failure may result in profit booking towards 22,800-23,000 levels.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 23450, followed by 23630 levels. Conversely, downside support is located at 23210, followed by 23100.
  • Bank Nifty: Intraday resistance is positioned at 51580, followed by 52100, while downside support is found at 50450, followed by 50100.
  • Fin Nifty: Intraday resistance is positioned at 22840, followed by 23000, while downside support is found at 22470, followed by 22290.

Derivative Market Analysis

1. Nifty:

  • The highest call OI addition is at 24,000, with immediate call OI at 23,500. If the price stays above 23,500, call unwinding may occur.
  • Major put OI addition is at 23,000, acting as immediate support. A drop below 23,000 could lead to a loss of momentum.
  • Call writers have shifted positions higher, indicating caution about an upward move. The put-call ratio for Nifty increased by 0.04 to 1.04.
  • Nifty's price rose by 3.1%, and open interest declined by 2.3%, suggesting short covering.

2. Bank Nifty:

  • The highest call OI addition is at 52,000, with immediate call OI addition at 51,000. If the price stays above 51,000, it could move towards 52,000.
  • Major put OI additions are at 50,000 and 50,500, acting as strong support. The immediate range for Bank Nifty is 50,000 to 52,000.
  • Bank Nifty's PCR decreased by 0.08 to 0.75. Bank Nifty saw a 3.9% price rise and a 2.0% OI increase, indicating a long buildup.

3. Fin Nifty:

  • Major call OI additions are at the 23,500 level, followed by 23,000, indicating strong resistance.
  • The highest put OI addition is at 22,500, providing strong support.
  • Fin Nifty is expected to consolidate between 22,500 and 23,000 for the weekly expiry.

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 domestic and global stock market events. 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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