Share Market Today | May 06, 2024

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Synopsis:

Explore the latest market updates, including Godrej Properties’ ₹30,000 crore residential projects across major Indian cities, Shriram Properties’ 4-acre Bengaluru land acquisition, Firstsource’s ₹328 crore acquisition plan, Raymond’s engineering business consolidation, Trident’s additional capacity of 5.5 MWp rooftop solar power project, 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. Godrej Properties is set to launch residential projects worth ₹30,000 crore this fiscal year across major cities, which are expected to achieve 20% growth in sales bookings amid strong demand.
  2. Shriram Properties has acquired a 4-acre land parcel near Electronic City, Bengaluru, with a saleable area of 4 lakh sq ft and a revenue potential of ₹250 crore.
  3. Firstsource is planning to acquire Quintessence Business Solutions & Services for ₹328 crore.
  4. Raymond has approved the consolidation of the engineering business into a single entity.
  5. Trident has commissioned an additional capacity of 5.5 MWp rooftop solar power project at Budhni, Madhya Pradesh.
  6. Total reserves in the week ended April 26 have come down by $2.4 billion at $637.9 billion, with foreign currency assets down by $1.2 billion at $559.7 billion.
  7. In April, the final S&P Global Composite PMI for the US was 51.2, slightly lower than March's 52.1 and just above the estimated 50.9.
  8. FIIs net sold ₹2,391.98 crore while DIIs net bought ₹690.52 crore in equities on Friday.

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

US Share Market News

1. Performance Overview:

  • Global stocks surged as Treasury yields declined on Friday following a US payrolls report that fell short of expectations. This unexpected softness alleviated concerns that the Federal Reserve might prolong its stance on higher interest rates.

2. Economic Indicators:

  • In April, nonfarm payrolls rose modestly by 175,000, the lowest since October 2023, below economists' expectations of 243,000 according to a Reuters poll.

3. Sector-Specific Movements:

  • During Friday's trading session, the Dow Jones surged by 450.02 points, marking a notable 1.18% increase to reach 38,675.68.
  • Similarly, the S&P 500 climbed by 63.59 points, a 1.26% rise, closing at 5,127.79, while the Nasdaq Composite saw significant growth, gaining 315.37 points, a robust 1.99% increase, to settle at 16,156.33.

4. Corporate Earnings:

  • This week marks the ongoing stride of the first-quarter earnings season, with key players like Uber Technologies Inc. and Walt Disney Company poised to release their quarterly reports.
  • Additionally, a lineup of influential Federal Reserve officials is scheduled to address, promising further insights into the trajectory of interest rates.

Other Asset Classes

1. Treasury Yields:

  • After the payrolls report, Treasury yields and the dollar dropped as investors increased their expectations for a Fed rate cut in September. CME's FedWatch Tool now shows a 66.8% chance of a cut of at least 25 basis points, up from 61.6% previously.

2. Currency:

  • The yield on the US 10-year bonds saw a decline of 6.1 basis points, settling at 4.51%, while concurrently, the dollar index experienced a 0.3% decrease, culminating in a closing figure of 104.95.

3. Commodities:

  • Oil prices took a dive, marking their sharpest weekly decline in three months after the release of the jobs report. U.S. crude settled at $78.11 per barrel, down 1.06%, while Brent crude closed at $82.96 per barrel, a decrease of 0.85% for the day.
  • Gold prices persist in maintaining a steady stance, currently resting at $2312 per ounce.

Asian Markets

1. General Trends:

  • Asia-Pacific markets followed Wall Street's rise on Monday, encouraged by weaker U.S. job numbers, hinting at possible rate cuts by the Federal Reserve.
  • Investors are watching for Australia's rate decision on Tuesday and China's April trade figures on Thursday.

2. Specific Index Performance:

  • Japan and South Korea's markets are shut for a holiday, while Australia's main index opened with a 0.5% rise in today’s morning trading session.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty anticipates a positive start driven by strong global cues. Nifty will likely experience significant fluctuations within the range of 22470-22700.

2. Nifty Short-Term Outlook:

  • On Friday, the Nifty began positively, reaching a fresh all-time high of 22,794 within the first hour of trading. However, significant selling pressure led to a complete reversal, with the index closing sharply lower at 22,475, down 0.76%. Despite this, it managed a 0.25% weekly gain.
  • The daily chart indicates a bearish engulfing candle, suggesting profit-taking at higher levels. To maintain a potential rebound, the index needs to stay above Friday's low of 22,348.
  • Looking ahead, Nifty will likely consolidate between 22,800-22,200, forming a higher base after a rapid 1,000-point rally in just eight sessions.
  • This dip presents an opportunity to gradually invest in quality stocks. Short-term support is expected at 22,200-22,000, marked by the lower channel band, 50-day EMA, and key retracement level.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22640, followed by 22700 levels. Conversely, downside support is located at 22470, followed by 22400.
  • Bank Nifty: Intraday resistance is positioned at 49300, followed by 49480, while downside support is found at 48920, followed by 48730.
  • Fin Nifty: Intraday resistance is positioned at 21940, followed by 22000, while downside support is found at 21790, followed by 21710

Derivative Market Analysis

1. Nifty:

  • The option chain for 9th May Nifty expiry suggests a trading range of 22000-22800. The highest Put OI is at 22000, while the highest Call OI has shifted to 22800. Recent activity shows aggressive call writing between 22500 and 23000, while Put writers have moved their position below 22500.
  • Friday's downturn in NIFTY, accompanied by a decrease in Future COI and overall PCR OI, indicates potential support at 22500. Confirmation of a bullish view relies on breaching Friday's low and observing a decrease in Put OI at 22500.

2. Bank Nifty:

  • The Banknifty option chain points to a range of 47000-49500 for the upcoming expiry. There's still substantial Put OI at 49500, despite it being in the money, indicating strong confidence among put writers and suggesting a bullish sentiment.
  • The 49000 strike holds significant Call and Put OI in today’s session, making it pivotal. If BankNIFTY stays above 49000, a short-covering rally could be triggered, while dropping below it might target 48500.

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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