Share Market Today | May 08, 2024

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Synopsis:

Explore the latest market updates, including Lupin’s $200 million per quarter US sales expectations, Tata Motors’s JLR April UK sales up 19% to 5,627 units YoY, Read more... Jindal Stainless supplies special alloy steel sheets for Navy's SMART system, Dixon Electro’s partnership with Nokia for telecom product development, NSE’s live trading on Saturday the May 18th, LTIMindtree and IBM’s plan to establish joint Generative AI centre in India, and more. Plus, get detailed insights on FII DII data, option chain analysis, and outlook on global and Indian share markets.Read less

Latest Market News

  1. Tata Motors' Jaguar Land Rover saw a 19% increase in UK sales for April, selling 5,627 units compared to 4,722 units last year.
  2. LTIMindtree and IBM are teaming up to create a global centre for Generative AI excellence in India.
  3. Jindal Stainless provided special alloy steel sheets for DRDO's SMART system used by the Navy.
  4. Dixon Tech's subsidiary, Dixon Electro, has made a deal with Nokia to develop and manufacture telecom products.
  5. The National Stock Exchange (NSE) plans to hold a live trading session on May 18th, a Saturday, as they switch to their disaster recovery site.
  6. Lupin aims for $200 million quarterly US sales, but India growth disappoints. Predicts 10% revenue growth next year with steady 20% margins.
  7. FIIs sold equities worth ₹3,668.84 crore, while DIIs bought equities worth ₹2,304.50 crore yesterday.

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

US Share Market News

1. Performance Overview:

  • The S&P 500 made a slight gain on Tuesday as investors looked over lots of company earnings, including Disney's disappointing subscriber growth.
  • Positive financial results from the banking sector, along with hopes that the European Central Bank will lower rates as soon as next month, boosted stock markets across Europe.

2. Economic Indicators:

  • Federal Reserve officials like Vice Chair Philip Jefferson, Boston Fed President Susan Collins, and Fed Governor Lisa Cook are scheduled to speak during the day.

3. Sector-Specific Movements:

  • The Dow Jones Industrial Average rose by 31 points or 0.1%, the S&P 500 by 0.1%, but the NASDAQ Composite fell by 0.1%.
  • This was driven by a drop in Treasury yields, fueled by hopes for a rate cut after weak jobs data and remarks from Fed chairman Jerome Powell last week suggesting no imminent rate hikes.

4. Corporate Earnings:

  • Investors are focusing on earnings from Uber and Shopify on Wednesday. They'll also keep an eye on Wednesday morning's economic data about wholesale inventories.

Other Asset Classes

1. Treasury Yields:

  • The yield on the 10-year note dropped by 3 basis points to 4.459%, while the two-year note's yield, indicating expected interest rates, went up by 0.6 basis points to 4.828%.

2. Currency:

  • The dollar initially fell but later gained strength against other currencies, including the yen, despite Japan's warnings about supporting its currency. The dollar index increased by 0.3% and is now at 105.36.

3. Commodities:

  • Oil prices ended a bit lower because worries about too much oil eased up. U.S. crude finished at $78.38 per barrel, dropping by 0.13%, and Brent settled at $83.16 per barrel.
  • Gold prices fell yesterday, reversing the gains from the last session, as traders stayed attentive to the possibility of Fed rate reductions. US gold futures ended 0.3% down at $2,324.20 per ounce.

Asian Markets

1. General Trends:

  • Asia-Pacific markets, echoing Wall Street's Tuesday session, are mixed. Eyes are on China and Japan for key economic data tomorrow, including China's April trade figures and Japan's March pay statistics.

2. Specific Index Performance:

  • Japan's Nikkei 225 fell 0.6% at the open, the broad-based Topix down 0.3%.
  • South Korea's Kospi was almost flat with a 0.1% gain, while the Kosdaq saw a larger loss of 0.34%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty suggests a steady start for the Indian market today. The index is likely to continue its recent trading range of 22200 to 22400 throughout the session.

2. Nifty Short-Term Outlook:

  • Tuesday saw the benchmark index decline for the third consecutive session. Nifty started positively but couldn't sustain, ending with a 0.6% decrease at 22302, while Bank Nifty closed 1.25% lower at 48285. Both Nifty Midcap and Nifty Small also fell by 2.0% each.
  • The daily chart shows Nifty forming a third bear candle, signalling a continued corrective decline and testing the 50-day EMA.
  • We anticipate further consolidation within the range of 22800-22200, with short-term support at 22000-22200 levels, marked by various technical indicators.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22370, followed by 22450 levels. Conversely, downside support is located at 22230, followed by 22160.
  • Bank Nifty: Intraday resistance is positioned at 48530, followed by 48690, while downside support is found at 48080, followed by 47850.
  • Fin Nifty: Intraday resistance is positioned at 21610, followed by 21700, while downside support is found at 21450, followed by 21360.

Derivative Market Analysis

1. Nifty:

  • The option chain data indicates the highest Call OI addition at 23,000, with immediate resistance at 22,500. Conversely, significant Put OI accumulation at 22,000 indicates crucial support for the Nifty. Call writers’ dominance above 22,400 and unwinding of put writers indicates caution.
  • The immediate range for the Nifty is between 22,000 and 22,400. The Nifty's put-call ratio has decreased to 0.78, indicating evolving sentiment.

2. Bank Nifty:

  • The options data reflects significant activity with the highest call OI at 49,500 and immediate resistance at 48,500. Conversely, the highest put OI is concentrated at 47,000, with support at 48,000, suggesting a cautious stance.
  • Despite this, the Bank Nifty's weekly expiry is expected between 48,000 and 48,500, with a breakout likely prompting a directional move. The maximum pain level for the week is at 48,500.

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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