Share Market Today | GIFT Nifty Remains Flat on Firm Global Indicators

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Synopsis:

Today’s latest market updates include: Hero MotoCorp adds 2.2% stake in Ather Energy for ₹124 Cr, Bajaj Housing Finance plans ₹4,000 Cr IPO, Wipro wins $500 mn US Telco contract, Tata Chemicals' UK subsidiary fined £1.1 million, plus other global market news.

Latest Market News

  1. Hero MotoCorp's board approved purchasing an additional 2.2% stake in Ather Energy for ₹124 crore.
  2. Bajaj Housing Finance approved an IPO of equity shares at ₹10 each, including a ₹4,000 crore fresh issue and an offer for sale.
  3. Tata Chemicals subsidiary was fined £1.1 million by a UK court over a fatal incident in 2016.
  4. IRB Infra and IRB Infrastructure Trust collected ₹536 crore in tolls in May 2024, up 30% from May 2023 and 6.5% from April 2024.
  5. The Modi government is likely to launch a ₹10,000 crore FAME 3 scheme within the first 100 days of its new term.
  6. Wipro secured a $500 million contract from a leading US communication service provider.
  7. SEBI has issued a show-cause notice to PB Fintech CEO Yashish Dahiya regarding a $2 million investment.
  8. Allcargo Terminals signed an MoU with Kences Container Terminal to operate a container freight station in Chennai for expansion.
  9. RVNL received a Letter of Award from NTPC for a Project Execution Agency contract worth ₹495 crore.
  10. Dixon Tech signed a term sheet with HKC Corporation to form a JV for manufacturing Liquid Crystal Modules.
  11. Zen Technology received an Indian patent for its TZS Laser Boresighting, valid until July 22, 2036.
  12. FIIs net sold ₹6,867.72 crore while DIIs net bought ₹3,718.38 crore in equities yesterday.

 

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

US Share Market News

1. Performance Overview:

  • On Thursday, the S&P 500 closed flat, taking a breather after hitting a record high a day earlier, as investors assessed further signs of cooling in the labour market ahead of the crucial monthly US jobs report.

2. Economic Indicators:

  • The European Central Bank (ECB) cut interest rates to 3.75% from 4%, despite ongoing inflation in the eurozone. This is the first cut since September 2019.
  • Friday's monthly payrolls report is expected to show 185,000 new jobs, slightly up from the previous month. Traders are betting on a 25 basis point Fed rate cut in September, pushing European benchmark indices to record highs.
  • The Fed is set to meet next week and is widely expected to keep interest rates unchanged.

3. Sector-Specific Movements:

  • The Dow Jones Industrial Average rose 0.2% (78 points), while the S&P 500 fell 0.02%, and the NASDAQ Composite slipped 0.1%.

Other Asset Classes

1. Treasury Yields:

  • On Thursday, the US Treasury yields were little changed as investors considered the latest economic data and weighed the outlook for interest rate cuts. The yield on the 10-year Treasury ticked up about 1 basis point to 4.288%.

2. Currency:

  • The US Dollar Index Futures traded in a range and closed marginally down by 0.14% at 104.07.

3. Commodities:

  • Crude oil futures rose about 2% for the second consecutive day, as the European Central Bank cut interest rates for the first time in five years and traders bet the Federal Reserve will follow suit in September. The WTI July contract closed at $75.55 a barrel, up 2%. The Brent August contract closed at $79.87 a barrel, up 1.86%.
  • Gold prices climbed to a two-week high as weaker-than-expected US jobs data increased hopes for a Federal Reserve interest rate cut later this year. Spot gold rose 0.8% to $2,373.99 per ounce.

Asian Markets

1. General Trends:

  • Asia-Pacific stocks rose on Friday as investors awaited key economic data from China and Japan, while also assessing the European Central Bank’s rate cut.

2. Specific Index Performance:

  • Japan’s Nikkei 225 and the Topix traded slightly below the flatline.
  • South Korea’s Kospi rose 1.45% as investors returned from a public holiday, while the small-cap Kosdaq gained 0.6%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty suggests a flat to positive opening amid strong global cues. Nifty is expected to consolidate with a positive bias in the 23,000-22,650 range.

2. Nifty Short-Term Outlook:

  • Benchmark indices rebounded for the second consecutive session after Tuesday's sharp decline, ahead of the RBI monetary policy outcome on Friday.
  • The Nifty started positively, reaching an intraday high of 22910 before closing at 22821, up 0.9%, while the Bank Nifty closed at 49291, up 0.48%. The broader market outperformed, with the Nifty Midcap and Smallcap indices closing higher by 2.2% and 3.3%, respectively.
  • The index formed a high wave candle with a higher high and higher low, indicating a continued pullback.
  • Having retraced 80% of Tuesday's decline, maintaining strength above 22910 post-RBI policy could push the index towards 23200, whereas failure to do so might result in consolidation between 22900-22200.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22920, followed by 23000 levels. Conversely, downside support is located at 22710, followed by 22630.
  • Bank Nifty: Intraday resistance is positioned at 49670, followed by 49890, while downside support is found at 49070, followed by 48830.
  • Fin Nifty: Intraday resistance is positioned at 22010, followed by 22100, while downside support is found at 21810, followed by 21730.

Derivative Market Analysis

1. Nifty:

  • The option chain analysis indicates that the Nifty is expected to trade between 22,500 and 23,000 levels, with the highest call option interest at 23,500 acting as a resistance and significant put option interest at 22,500 and 22,800 providing support.
  • The level of 22,800 is crucial, as it shows significant call-and-put activity, making it a deciding factor for the day's movement.
  • A breach below 22,800 could lead to a corrective move towards 22,500.
  • Additionally, the Nifty put-call ratio has risen to 1.03, suggesting a balanced market sentiment with a slight bullish tilt.

2. Bank Nifty:

  • The highest call OI addition for Bank Nifty is at the 50,000 level, with immediate resistance at 49,500, where there is a significant call OI addition.
  • On the other hand, the major put OI addition is at 49,000, acting as immediate support.
  • This indicates that the immediate trading range for Bank Nifty is between 49,000 and 49,500, with movements outside this range being significant.
  • Additionally, the Bank Nifty put-call ratio has decreased by 0.12 to 0.71.

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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