Share Market Today | May 07, 2024

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Explore the latest market updates, including REC and PFC unaffected by RBI draft, DLF expects ₹5,000+ cr sales from Privana West, JBM Auto targets ₹3,000 cr revenue from EVs in FY24-25, M&M Financial's April disbursements hit ₹3,930 cr, up 4% YoY, BPCL and HPCL to discuss bonus shares on May 9, LTIMindtree faces ₹155.7 cr GST demand for FY18-19 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. REC and PFC won't experience any negative effects on their profitability due to the proposed draft guidelines from the RBI.
  2. DLF foresees sales worth more than ₹5,000 crore from the Privana West project in Gurugram.
  3. JBM Auto is expecting to achieve revenue of ₹3,000 crore from its EV business in the FY 2024-25.
  4. M&M Financial Services has seen its overall disbursements for April reach approximately ₹3,930 crore, showing a 4% increase YoY.
  5. BPCL and HPCL are planning to discuss issuing bonus equity shares on May 9, 2024, coinciding with the announcement of their Q4 earnings.
  6. LTIMindtree has received a GST demand order of ₹155.7 crore related to the FY 2018-19.
  7. FIIs have sold equities worth ₹2,168.75 crore, while DIIs have bought equities worth ₹781.39 crore in the market on Monday.

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

US Share Market News

1. Performance Overview:

  • The US market had a strong start to the week, with renewed hopes of a September interest rate cut by the Federal Reserve bringing positive momentum to Wall Street.

2. Economic Indicators:

  • Friday's US labour report, showing weaker numbers than anticipated, made traders rethink their expectations, speculating that the Federal Reserve might start easing monetary policy as soon as September.
  • The Fed remained worried about inflation when thinking about cutting rates since prices went up more than expected in the first quarter, staying way above the Fed's 2% yearly goal.

3. Sector-Specific Movements:

  • Stocks on Wall Street went up in yesterday’s session. The Dow Jones increased by 0.46%, the S&P 500 rose by 1.03%, and the Nasdaq went up by 1.19%.

4. Corporate Earnings:

  • This week, investors will keep an eye on the first quarter earnings reports as big names like Walt Disney Company and Duke Energy Corporation will be sharing their earnings.

Other Asset Classes

1. Treasury Yields:

  • Investors saw a slight drop in Treasury yields after looking at last week's weak job numbers. This made them think that the US economy wasn't overheating, so there might be a rate cut. The yield on 10-year US notes went down by 1.3 basis points to 4.487%.

2. Currency:

  • The dollar index dropped for the fourth day in a row. As a result, the dollar index went down by 0.07% to 105.10. This happened because recent job data revealed a slower increase in jobs than expected, easing worries that the Federal Reserve might raise interest rates again.

3. Commodities:

  • Oil prices went up because Saudi Arabia increased crude prices for June, and there's worry that conflict between Hamas and Israeli forces might start again. US crude ended at $78.48 a barrel, and Brent ended at $83.33 a barrel.
  • Gold prices rose because the dollar got weaker. US gold futures for June delivery ended 0.9% higher at $2,331.20 per ounce.

Asian Markets

1. General Trends:

  • Asia-Pacific markets are poised to continue yesterday's upward trend, following Wall Street's climb fueled by anticipation of an interest rate cut from the Federal Reserve.
  • Investors in Asia are eagerly awaiting the Reserve Bank of Australia's decision on interest rates at the conclusion of its two-day monetary policy meeting.

2. Specific Index Performance:

  • Japan’s Nikkei 225, climbed 0.96% following a holiday break, with the broader Topix index also up by 0.61%.
  • South Korea's main index, the Kospi, surged 1.6% after its holiday break, while the smaller-cap Kosdaq rose by 1.08%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty predicts a strong start thanks to global trends. Nifty is expected to continue consolidating between 22350 and 22550.

2. Nifty Short-Term Outlook:

  • The benchmark index showed high volatility, opening positively but closing down slightly at 22442 levels. Bank Nifty also closed lower at 48895 levels. Nifty Midcap and Small-cap indices declined by 0.5% and 1.5% respectively.
  • On the daily chart, Nifty formed a bear candle, suggesting consolidation with a corrective bias. To maintain a pullback option, it needs to stay above Friday’s low of 22348.
  • We anticipate Nifty to continue consolidating between 22800-22200, forming a higher base after a 1000-point rally in 8 sessions. This breather presents a buying opportunity in quality stocks.
  • Short-term support for Nifty is at 22000-22200 levels, marked by the lower band of the rising channel since Jan 2024, 61.8% retracement of the recent up move (21777-22794), and the rising 50-day EMA at 22238.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22530, followed by 22600 levels. Conversely, downside support is located at 22400, followed by 22340.
  • Bank Nifty: Intraday resistance is positioned at 49130, followed by 49370, while downside support is found at 48770, followed by 48530.
  • Fin Nifty: Intraday resistance is positioned at 21820, followed by 21900, while downside support is found at 21670, followed by 21600.

Derivative Market Analysis

1. Nifty:

  • The Nifty's option chain indicates significant activity around key levels: call options dominate at 23,000, with resistance seen up to 22,800, while put options show strength at 22,000, with immediate support at 22,500.
  • The Nifty is expected to consolidate between 22,000 and 22,500, with a put-call ratio of 0.85, suggesting a slight decrease in bullish sentiment.

2. Bank Nifty:

  • The highest call open interest addition is at 49,500, with immediate resistance at 49,000. A sustained breach above 49,000 could trigger a short-covering rally. Conversely, a major Put OI addition at 48,500 indicates immediate support. Breaching and holding below may lead to a corrective bias.
  • The accumulation of call and put OI at 49,000 suggests a straddle formation, likely a deciding level. Option chain analysis indicates significant movement if the index surpasses 49,500 or breaches 48,500.

3. Fin Nifty:

  • Ahead of the weekly expiry, FinNifty's open interest data indicates significant call OI at 22,000 and 21,900 levels, suggesting resistance. 
  • Conversely, the highest put open interest is at 21,300 and 21,600 levels, indicating support. Option chain analysis forecasts a consolidation range of 21,600 to 22,000 for the Nifty.

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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