Share Market Today | GIFT Nifty Positive Amid Strong Global Cues

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Synopsis:

Today’s latest market updates include NSE’s world record with 1,971 crore orders in a day, Maruti Suzuki’s ₹450 Cr investment in green energy, IOC’s partnership with Sun Mobility for battery swapping, BHEL’s ₹3,500 Cr Adani Power thermal plant contract, plus other global market news.

Latest Market News

  1. NSE sets a world record with 1971 crore orders in a single day.
  2. Maruti Suzuki plans to invest ₹450 crore in renewable energy projects.
  3. Kotak Mahindra Bank receives RBI approval to sell 70% of its general insurance arm to Zurich Insurance.
  4. IOC forms a joint venture with Singapore's Sun Mobility for battery swapping.
  5. BHEL wins a ₹3,500 crore contract from Adani Power for a thermal plant in Chhattisgarh.
  6. SEBI mandates direct security payout to client accounts.
  7. Peak power demand reached nearly 24 GW on Tuesday.
  8. FIIs net sold ₹5,656 crore while DIIs net bought ₹4,555 crore in the cash market yesterday.

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

US Share Market News

1. Performance Overview:

  • On Wednesday, the S&P 500 and Nasdaq closed at new record highs, driven by Nvidia's strength in tech and falling Treasury yields.
  • Signs of a cooling labour market boosted hopes that the Federal Reserve will cut interest rates later this year.

2. Economic Indicators:

  • Data showed the economy created only 152,000 private sector jobs in May, down from 188,000 in April and below economists' estimates of 173,000.
  • About 65% of traders expect the Fed to implement a 25 basis-point reduction in September, up from below 50% a year earlier, according to CME's FedWatch Tool.
  • A slew of US jobs data showing a cooling labour market comes just ahead of the important monthly nonfarm payrolls report due Friday.

3. Sector-Specific Movements:

  • The Nasdaq Composite gained 2%, closing at a record high of 17,187.90. The S&P 500 climbed 1.2% to a record high of 5,354.03, while the Dow Jones Industrial Average rose 96 points, or 0.3%.

Other Asset Classes

1. Treasury Yields:

  • On Wednesday, the treasury yields slipped as investors assessed the economic outlook amid key data releases. The yield on the 10-year Treasury fell by nearly 6 basis points to 4.283%.

2. Currency:

  • The US dollar rose 0.2% to 104.28 after data showed a rebound in the services sector. On Tuesday, it hit 103.99, its lowest since April 9.

3. Commodities:

  • Crude oil futures rose over 1%, recovering from four-month lows. US crude (WTI) for July increased by 1.12% to $74.07 a barrel, and Brent for August rose by 1.15% to $78.41 a barrel. However, both are down nearly 4% this week due to a selloff after OPEC+ decided to increase production.
  • Gold prices gained 1.1% to $2,353.90 per ounce as bond yields fell following weaker-than-expected US private payrolls data, reinforcing expectations of a Federal Reserve rate cut later this year.

Asian Markets

1. General Trends:

  • Asia-Pacific stocks rose on hopes for rate cuts from the European Central Bank, while major US indexes reached new highs overnight.
  • The European Central Bank is expected to cut borrowing costs for the euro area this week, the first reduction since September 2019.

2. Specific Index Performance:

  • Japan's Nikkei 225 climbed 1.12%, nearing the 39,000 mark for the first time in two weeks, while the Topix gained 0.65%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty indicates a positive opening for the Indian market amid strong global cues. The Nifty spot is expected to consolidate with a positive bias in the 22500-22800 range. The high volatility seen in the first three trading sessions of this week is likely to subside.

2. Nifty Short-Term Outlook:

  • On June 5, the benchmark indices rebounded strongly, rising over 3% after a nearly 6% fall in the previous session, driven by value buying.
  • The Nifty, despite high volatility in the first half, surged 3.4% to close at 22620, led by gains in banks, automobiles, metals, and FMCG stocks. The Bank Nifty also recovered, closing 4.5% higher at 49054.
  • The index formed a bull candle, indicating a pullback from oversold territory, with key support at the Tuesday low around 21200.
  • Sustaining above 22670 could push the index towards 22900, but failure to do so may result in consolidation between 22700 and 22000 in upcoming sessions.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22700, followed by 22770 levels. Conversely, downside support is located at 22570, followed by 22500.
  • Bank Nifty: Intraday resistance is positioned at 49360, followed by 49600, while downside support is found at 48830, followed by 48550.
  • Fin Nifty: Intraday resistance is positioned at 21780, followed by 21900, while downside support is found at 21610, followed by 21500.

Derivative Market Analysis

1. Nifty:

  • The option chain analysis indicates that for the current expiry, the Nifty is expected to consolidate within the 22,800 to 22,500 range.
  • Significant call open interest at 23,000 and 22,800 suggests strong resistance at these levels, while substantial put open interest at 22,000 and 22,500 indicates robust support at 22,500.
  • The put-call ratio has risen slightly to 0.75, reinforcing this consolidation outlook.

2. Bank Nifty:

  • The accumulation of both call and put OI at the 49,000 strike price suggests a straddle formation, marking it as a crucial level for the day.
  • The highest call OI additions are at the 50,000 and 49,000 levels, indicating a potential upward move towards 50,000 if the price stays above 49,000.
  • Significant put OI additions at 48,000 and 49,000 suggest a possible loss of momentum if the price falls below 49,000.
  • Additionally, the Bank Nifty put-call ratio has risen by 0.37 to 0.83.

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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