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Share Market Today | GIFT Nifty Up as Asian Markets Rebound

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Synopsis:

Today’s latest market updates feature Power Mech’s ₹110.57 Cr order from Dangote, an 11% rise in Tata Motors’s JLR UK July sales, PFC's independent directors concerned about ₹20,000 Cr loan to SP Group, Lupin receives ₹672.4 Cr SCN from the Maharashtra GST, plus other global market news.

Latest Market News

  1. Power Mech wins a ₹110.57 crore order from Dangote Petroleum Refinery & Petrochemical FZE.

  2. Tata Motors reports an 11% increase in July JLR UK sales, with 6,121 units sold compared to 5,516 units last year.

  3. SEBI states that bonus shares will appear in demat accounts within two days of the record date.

  4. PFC's independent directors express concerns about a ₹20,000 crore loan to the SP Group.

  5. Lupin receives a show cause notice from the Maharashtra GST authority for a tax and penalty recovery of ₹672.4 crore.

  6. FIIs sold ₹10,073.75 crore in equities yesterday, while DIIs bought ₹9,155.55 crore.

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

US Share Market News

  1. Performance Overview:

    • US benchmark equity indexes plummeted on Monday following a major sell-off in the previous session due to economic downturn fears.

  2. Sector-Specific Movements:

    • The Nasdaq Composite plunged 3.4% to 16,200.1 after entering correction territory on Friday.

    • The S&P 500 fell by 3% to 5,186.3, and the Dow Jones Industrial Average dropped 2.6% to 38,703.3.

    • All sectors saw significant losses, with the technology sector hit hardest, down 3.8%.

  3. Stock-Specific Action:

  • Nvidia was one of the worst performers on the S&P 500 and the Nasdaq, dropping 6.4%. The company's new artificial intelligence chips could face delays due to design issues, potentially impacting major customers like Microsoft, Meta Platforms, and Alphabet's Google.

  1. Economic Indicators:

    • On Friday, the US Bureau of Labor Statistics reported a weaker-than-expected jobs report for July, with the unemployment rate increasing to 4.3% from June's 4.1%.

    • This report sparked a broad stock market sell-off and raised concerns about a possible recession.

    • Economic news showed mixed results for the U.S. services sector in July. The Institute for Supply Management's data indicated higher-than-expected activity, while S&P Global reported a slight slowdown in growth.

Other Asset Classes

  1. Treasury Yields:

    • The U.S. 10-year yield fell 1.4 basis points to 3.78% on Monday, while the two-year rate increased by three basis points to 3.9%.

  2. Currency:

    • The dollar index steadied around 102.8 on Tuesday after losing up to 2.1% over the previous two sessions. 

    • The yen weakened by over 1% to trade at 145.75 against the U.S. dollar.

    • Analysts cautioned that recession fears might be exaggerated and that the unwinding of the yen carry trade will stabilise.

  3. Commodities:

    • US West Texas Intermediate crude rose 1.86% to trade at $74.30 per barrel. Brent crude climbed 1.65% to $77.56 per barrel.

    • Gold dropped 0.9% to $2,447.60 per troy ounce, and silver fell 3.8% to $27.31 per ounce.

Asian Markets

  1. General Trends:

    • Asian markets were optimistic about a relief rally on Tuesday.

    • Futures pointed to a rebound on the Nikkei, and central bank officials made reassuring comments to calm market nerves.

  2. Specific Index Performance:

    • Japan's Nikkei 225 and the broader Topix climbed more than 10%.

    • South Korea's Kospi jumped over 4%, and the small-cap Kosdaq rose by more than 5.5%. This rebound followed a temporary halt in South Korean markets on Monday after circuit breakers were triggered.

    • Australia's S&P/ASX 200 opened up 0.16%.

    • Hong Kong's Hang Seng index futures were at 16,781, slightly lower than the HSI's last close of 16,698.36.

India Market Outlook

  1. GIFT Nifty Projection:

    • Gift Nifty indicates a gap-up opening of over 150 points for the Indian markets, with the Nifty spot likely to consolidate in the range of 23,640 to 24,400 after a positive opening.

  2. Market in Previous Session:

    • Indian markets plunged over 3% intraday on August 5, driven by weak global sentiments due to potential US recession worries, poor job data, manufacturing PMI, and jobless claims.

    • The Nifty50 index breached 23,900 for the first time since June 26.

    • At day’s low, both benchmarks dropped nearly 5% from record highs of last week.

    • The Sensex closed down 2,222.55 points (2.74%) at 78,759.40, and the Nifty fell 662.10 points (2.68%) to 24,055.60.

    • Geopolitical tensions and reverse Yen carry trade fears exacerbated the decline.

    • All sectoral indices ended in the red, with auto, metal, capital goods, oil & gas, power, media, and realty down 4% each.

  3. Nifty Short-Term Outlook:

    • The Nifty has breached below the budget day low of 24075, breaking the uptrend, but bounced from its 50-day EMA near 23,960, which now acts as an important pivot.

    • It closed decisively below the 21-day EMA at 24484, indicating a short-term reversal.

    • A pullback is possible as Asian markets have rebounded strongly. Immediate resistance is at 24,300 – 24350.

    • Trading positions should be trimmed or strict stop losses observed.

    • A close below 24000 is sentimentally negative with support at 23800, while a move above 24,125 could push the index to 24,200 and 24,300.

  4. Intraday Levels:

    • Nifty: Intraday resistance is at 24,350, followed by 24,400 levels. Conversely, downside support is located at 23,950, followed by 23,800.

    • Bank Nifty: Intraday resistance is positioned at 50,600, followed by 50,840, while downside support is found at 49,800, followed by 50,000.

    • Fin Nifty: Intraday resistance is positioned at 23,100, followed by 23,250, while downside support is found at 22,680, followed by 22,600.

Derivative Market Analysis

  1. Nifty:

    • The highest put OI is at the 24000 level, followed by 23500, while the highest call OI is at 25000, followed by 24800.

    • Immediate put OI is concentrated at 24000, and immediate call OI is at 24500.

    • There has been significant put OI unwinding above 24100, showing caution among market participants, while strong call OI addition above 24000 indicates resistance on the upside.

    • Based on option chain analysis, immediate support is at 24000 and resistance at 24500.

    • The Nifty put-call ratio has decreased by 0.19 to 0.72.

  2. Bank Nifty:

    • The highest put OI for Bank Nifty is at 50000, and the highest call OI is at 52000, with immediate call OI concentrated at 50500.

    • There has been notable put OI unwinding above 50200, indicating caution, and strong call OI addition above 50000 suggests resistance on the upside.

    • A strong straddle at 50000 indicates its crucial role.

    • Immediate support is at 50000, and key resistance is at 50500.

    • The Bank Nifty put-call ratio has decreased by 0.19 to 0.59.

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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India offers several government bonds, including treasury bills, sovereign gold bonds, and long-term bonds. Each type has distinct tenures and interest rates, catering to different investment needs, from short-term liquidity to long-term stability.

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Investors can invest in government bonds via online platforms, brokers, or banks. Online options facilitate participation in auctions and secondary markets, offering a streamlined process for how to invest in government bonds conveniently.

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Interest from government bonds is taxed according to the investor’s income bracket. However, some bonds may offer tax benefits. Understanding these implications helps optimise returns when considering how to invest in government bonds.

Are there any risks associated with investing in government bonds in India?

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Although government bonds are low-risk, they are subject to interest rate fluctuations and inflation, which can impact returns. Understanding these risks is essential when considering how to invest in government bonds effectively.

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