Share Market Today | GIFT Nifty Firm, US Markets Gain

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Synopsis:

Today’s latest market updates include GPTInfra's ₹547 crore RVNL order, Tata Motors Finance merger with Tata Capital, Wipro and Zscaler launch AI platform, Tata Motors introducing TML Commercial Vehicles, PNB to sell 10% stake in Canara HSBC Life Insurance, plus other global market news.

Latest Market News

  1. GPTInfra secures a ₹547 crore order from RVNL.
  2. Tata Motors Finance will merge with Tata Capital.
  3. Wipro and Zscaler launch AI-powered platform Wipro Cyber X-Ray.
  4. Tata Motors will set up a subsidiary named TML Commercial Vehicles.
  5. PNB plans to list Canara HSBC Life Insurance on NSE/BSE by selling a 10% stake.
  6. FIIs sold ₹12,436.22 crore and DIIs sold ₹3,318.98 crore in equities yesterday.

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

US Share Market News

1. Performance Overview:

  • On Tuesday, the Dow closed higher as job openings fell to a three-year low, signalling weaker economic growth but raising hopes for a Federal Reserve rate cut this year.

2. Economic Indicators:

  • April's job openings fell to a three-year low of 8.1 million, surprising economists who expected 8.37 million. This suggests the labour market is cooling, which could lead to the Fed easing rates.
  • The latest job openings update comes ahead of Friday's nonfarm payrolls report and next week's Fed meeting.
  • The likelihood of a September rate cut has increased to 55% from 44.9%, according to Investing.com's Fed Rate Monitor tool.

3. Sector-Specific Movements:

  • The Dow Jones Industrial Average rose 140 points (0.36%) to 38,711.29, the S&P 500 increased by 0.1% to 5,291.34, and the NASDAQ Composite gained 0.2% to settle at 16,857.05.

Other Asset Classes

1. Treasury Yields:

  • On Tuesday, the US Treasury yields slipped as investors evaluated the latest economic data. The yield on the 10-year Treasury fell by 6 basis points to 4.334%.

2. Currency:

  • The US dollar edged higher, recovering from its over two-month lows against the euro and sterling. The dollar index rose 0.1% to 104.12 after hitting a low of 103.99, its weakest since mid-April.

2. Commodities:

  • US crude oil dropped over 1%, extending its recent losing streak and erasing most of its gains for the year. OPEC+ announced plans to increase production starting in October. WTI for July fell 1.31% to $73.25 a barrel, while Brent for August fell 1.07% to $77.52.
  • Gold dropped over 1% as the dollar steadied ahead of May’s US jobs report, which could influence the Fed’s interest rate strategy. Spot gold fell 0.9% to $2,329.10 per ounce.

Asian Markets

1. General Trends:

  • Asia-Pacific markets were mixed as investors assessed India's election results.
  • First-quarter GDP figures from Australia are soon expected.

2. Specific Index Performance:

  • Japan’s Nikkei 225 dropped 1.14%, while the broader Topix lost 1.4%.
  • South Korea’s Kospi rose 0.63%, and the smaller-cap Kosdaq increased by 0.21%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty indicates a positive opening. However, we expect continued volatility as the Nifty spot is likely to consolidate and trade within the 22,200-21,700 range.

2. Nifty Short-Term Outlook:

  • On June 4, benchmark indices plummeted over 5%, the largest drop in more than four years, due to election vote counts suggesting the ruling BJP might need alliance partners to retain power.
  • Nifty opened negatively, hitting a mid-session low of 21281, but recovered to close at 21950, down 5.5%. Bank Nifty and broader markets performed worse, with Bank Nifty down 7.5%, and Nifty midcap and small-cap indices down 7.5% and 8.1%, respectively.
  • A sizable bear candle indicated strong selling pressure, breaching the lower band of the channel since January 2024.
  • Immediate support is seen around 21200, with potential further declines to 20500-20800 if this level breaks, while a rise above 22500 is needed to halt the current downtrend.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22070, followed by 22200 levels. Conversely, downside support is located at 21820, followed by 21700.
  • Bank Nifty: Intraday resistance is positioned at 47390, followed by 47700, while downside support is found at 46750, followed by 46430.
  • Fin Nifty: Intraday resistance is positioned at 21030, followed by 21150, while downside support is found at 20730, followed by 20610.

Derivative Market Analysis

1. Nifty:

  • The highest call OI addition is at the 22,500 level, with immediate resistance at 22,000, while the major put OI addition at 21,500 acts as immediate support, indicating a straddle formation and a key decision point for the day.
  • The Nifty's immediate range is between 21,500 and 22,500, with the put-call ratio at 0.73 after a 0.31 decrease.
  • Nifty saw a 6.4% price drop and a 3.4% OI increase, indicating a short buildup.

2. Bank Nifty:

  • The Bank Nifty shows significant put option interest at the 47,000 level, suggesting a potential further downside to 46,000.
  • Major call option interest is at 48,000, with immediate call interest at 47,000, indicating that surpassing 47,000 could trigger short covering.
  • The combined call put OI at 47,000 points to a straddle formation, making it a crucial level for the weekly expiry.
  • The put-call ratio has decreased to 0.46, and an 8.2% decline in Bank Nifty with an 11.7% rise in open interest indicates a short buildup.

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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