Share Market Today | GIFT Nifty Holds Strong Amid Mixed Global Signals

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Synopsis:

Today’s latest market updates include Sobha's ₹2,000 Cr rights issue, Brigade aims for ₹13,000 Cr from Chennai residential projects, Bain Capital’s plan to exit L&T Finance with a ₹1,500 Cr block deal, the latest May inflation data, plus other global market news.

Latest Market News

  1. India's retail inflation dropped to a 12-month low of 4.75% in May.

  2. India's industrial production grew by 5% in April 2024, meeting forecasts.

  3. US core inflation in May was 0.2% month-over-month and 3.4% year-over-year, both below estimates.

  4. Sobha's board approved a rights issue of up to ₹2,000 crore at ₹1,651 per share, open from June 28 to July 4, 2024.

  5. Brigade aims for a total development value of ₹13,000 crore from its Chennai residential projects.

  6. Bain Capital plans to exit L&T Finance via a ₹1,500-crore block deal with a floor price of ₹169.17 per share.

  7. Motilal Oswal AMC launched India's first index fund for defence stocks, open from June 13 to June 24.

  8. FIIs and DIIs net bought ₹426.63 crore and ₹233.75 crore in equities, respectively, yesterday.

 

 

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

US Share Market News

  1. Performance Overview:

    • On Wednesday, the S&P 500 and Nasdaq Composite closed at record highs for the third straight session after consumer inflation cooled more than expected in May.

  2. Economic Indicators:

    • Annual inflation slowed to 3.3% in May, down from 3.4% in April, matching Wall Street expectations.

    • The Federal Open Market Committee kept interest rates steady at 5.25% to 5.50%, marking its seventh consecutive pause, aligning with market projections.

    • The committee's updated economic forecast now suggests only one rate cut this year, down from three projected in March.

  3. Sector-Specific Movements:

    • The Nasdaq, led by tech stocks, jumped 1.5% to 17,608.4, while the S&P 500 rose 0.9% to 5,421.

    • The Dow Jones Industrial Average fell 0.1% to 38,712.2.

    • Technology was the best-performing sector, while energy saw the biggest decline.

  4. Stock-Specific Action:

    • Oracle shares surged 13%, making it the top performer on the S&P 500. Late Tuesday, the software company projected annual growth in its fiscal first-quarter revenue and earnings and announced cloud partnerships with Microsoft-backed OpenAI and Google's Alphabet.

 

Other Asset Classes

  1. Treasury Yields:

    • The yield on the benchmark 10-year US Treasury note fell by 8 basis points to 4.322%, after hitting 4.25%, its lowest level since April 1. The two-year US Treasury yield dropped 7.6 basis points to 4.758%, marking its biggest daily drop since May 15.

  2. Currency:

    • The dollar index remained mostly unchanged at 104.68.

  3. Commodities:

    • Brent crude closed at $82.47, while West Texas Intermediate crude oil rose by 0.6% to $78.38 per barrel on Wednesday.

    • Gold increased by 0.5% to $2,339 per troy ounce, while silver surged 1.8% to $29.76 per ounce.

 

Asian Markets

  1. General Trends:

    • Asia-Pacific markets rose on Thursday after the US Federal Reserve kept the Federal Funds rate at 5.25% to 5.5% and adjusted its 'dot plot' to indicate only one rate cut this year.

    • This is a decrease from the three cuts projected in the March meeting. However, the dot plot also suggests a more aggressive cutting path for 2025, with four rate cuts totalling 100 basis points, up from three.

  2. Specific Index Performance:

    • Japan's Nikkei 225 rose by 0.56%, while the broad-based Topix was slightly lower.

    • South Korea's Kospi led the gains, rising 1.39% and on track for a third consecutive day of gains, while the small-cap Kosdaq increased by 0.6%.

    • Australia's S&P/ASX 200 increased by 0.8%, recovering from two days of losses.

    • Hong Kong's Hang Seng index futures were at 18,035, higher than the previous close of 17,937.84.

 

India Market Outlook

  1. GIFT Nifty Projection:

    • Gift Nifty suggests a slightly positive start for the Indian markets amid mixed global signals. Nifty is expected to break out of its consolidation range between 23,000 and 23,500.

  2. Nifty Short-Term Outlook:

    • Benchmark indices started strong, reaching a new high in early trade, but lack of follow-through led to a range-bound session, with the Nifty50 ending at 23,322.95, gaining 58.10 points.

    • Mid and Small-caps outperformed, each advancing over 1%, with Media and PSU Banking sectors leading while FMCG lagged.

    • A Shooting Star candlestick pattern at record levels indicates weakening bullish momentum.

    • The last-hour reversal was due to cautious investor sentiment ahead of US & India CPI data, triggering profit booking. Despite this, the short-term trend remains positive above 23,300.

    • The index is likely to consolidate within the 23,300-23,500 range, with a breakout above 23,500 potentially leading to a rally towards 23,800. Buying on dips around 23,150-23,100 is recommended.

  3. Intraday Levels:

    • Nifty: Intraday resistance is situated at 23,500, followed by 23,650 levels. Conversely, downside support is located at 23,200, followed by 23,080

    • Bank Nifty: Intraday resistance is positioned at 50,350, followed by 50,700, while downside support is found at 49,400, followed by 49,250.

    • Fin Nifty: Intraday resistance is positioned at 22,480, followed by 22,700, while downside support is found at 21,960 followed by 21,660.

 

Derivative Market Analysis

  1. Nifty:

    • The highest call OI is at the 24,000 level, with significant call OI additions at 23,400 and 23,500, which will act as strong resistance for the weekly expiry.

    • Major put OI additions are positioned at 23,000 and 23,200, serving as crucial support levels.

    • Option chain analysis shows call writers active above 23,400 and put writers below 23,200, suggesting consolidation within this range. A break on either side may trigger a directional move.

    • The Nifty put-call ratio has remained unchanged at 1.02.

  2. Bank Nifty:

    • The accumulation of both call and put OI at the 50,000 strike level suggests a straddle formation, making it a key level for the day.

    • Call writers are aggressively positioning at 50,000, likely capping upward movement, but surpassing this level could trigger short covering.

    • If prices remain below 50,000, a corrective move towards 49,500 and 49,000 may occur.

    • Option chain analysis shows put writers active below 49,700 to 49,500 and call writers above 50,000, indicating consolidation.

    • The Bank Nifty put-call ratio has increased by 0.11, now standing at 0.92.

 

 

 

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.

 

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