Share Market Today | GIFT Nifty Flat Amid Muted Global Cues

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Synopsis:

Today’s latest market updates include Tata Elxsi’s partnership with RedHat on a 5G connected car, RITES and DMRC exploring metro rail operations, Wipro’s new GenAI solution with HP, and JK Tyre's bank facility rating upgraded to CARE AA-, plus other global market news.

Latest Market News

  1. Tata Elxsi partners with RedHat to develop a 5G-connected car using its CVP platform TETHER.

  2. RITES and DMRC agree to explore the operation and maintenance of metro rail systems.

  3. Wipro will launch an on-premise GenAI solution with Hewlett Packard Enterprise.

  4. MosChip Tech receives MeitY approval for its smart energy metre IC development for Indian and overseas markets.

  5. JK Tyre's long-term bank facility rating was upgraded by CARE Ratings to CARE AA- from CARE A+.

  6. Thomas Cook's bank loan facilities and corporate credit rating outlook were upgraded by CRISIL Ratings.

  7. FIIs net sold ₹3,033 crore and DIIs net sold ₹554 crore in equity yesterday.

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

US Share Market News

  1. Performance Overview:

    • On Thursday, the S&P 500 and Nasdaq Composite hit record highs for the fourth day in a row, showing that inflation pressures are easing.

  2. Economic Indicators:

    • After yesterday's lower-than-expected consumer price index report, today's data shows that the US Producer Price Index (PPI) for May increased by 2.2% year-over-year, down from 2.3% in April and below the expected rise of 2.5%.

  3. Sector-Specific Movements:

    • The Nasdaq, full of tech stocks, went up 0.3% to 17,667.6, and the S&P 500 increased by 0.2% to 5,433.7.

    • However, the Dow Jones Industrial Average dropped 0.2% to 38,647.1.

    • Technology stocks led the gains, while communication services and energy sectors saw the biggest declines.

Other Asset Classes

  1. Treasury Yields:

    • On Thursday, the US 10-year yield dropped by 4.7 basis points to 4.25%, while the two-year rate decreased by 4.9 basis points to 4.70%.

  2. Currency:

    • The dollar index increased by 0.52% yesterday, closing at 105.239.

  3. Commodities:

    • Brent crude futures slightly rose to $82.7 per barrel on Thursday after recent economic data suggested U.S. inflation has eased. Meanwhile, WTI crude oil dropped by 0.7% to $77.92 per barrel.

    • Gold fell by 1.5% to $2,318.90 per troy ounce, while silver plunged by 4.2% to $29 per ounce.

Asian Markets

  1. General Trends:

    • Asia-Pacific markets were mostly steady on Friday ahead of the Bank of Japan's rate decision.

    • Economists polled by Reuters expect the BOJ to maintain its benchmark interest rate at 0%-0.1%.

    • The BOJ currently aims to purchase about 6 trillion yen ($38.5 billion) in bonds per month and has announced plans to buy between 4.8 trillion yen and 7 trillion yen of bonds monthly.

  2. Specific Index Performance:

    • Japan's Nikkei 225 opened down 0.09%, while the Topix was slightly below the flatline.

    • South Korea's Kospi rose by 0.14%, the only benchmark in positive territory. The small-cap Kosdaq fell by 0.36%.

    • Australia's S&P/ASX 200 dropped by 0.17%.

    • Hong Kong Hang Seng index futures were at 17,964, down from the last close of 18,112.63.

India Market Outlook

  1. GIFT Nifty Projection:

    • Gift Nifty suggests a flat opening for Indian markets amid muted global cues. The Nifty spot is likely to consolidate between 23,000 and 23,500.

  2. Nifty Short-Term Outlook:

    • Indian markets hit a new high of 23,481 due to supportive global cues and domestic data, ending the session at 23,398.90.

    • Sectorally, Realty rose over 2%, IT gained 1%, Auto was up 0.7%, and Pharma increased 0.5%, while Media fell 1% and FMCG dropped 0.6%.

    • Nifty has been trading flat for the last four sessions, typically preceding a sharp move, though the direction is unclear due to profit booking at higher levels.

    • With multiple index weekly options expiring on Friday and a shortened week ahead, volatility is expected to rise.

    • The short-term trend is positive above 23,200, with potential consolidation between 23,200-23,500.

    • A breakout above 23,500 could lead to a rally towards 23,800, and buying is recommended around 23,150-23,100 where support exists.

  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 49,250, followed by 49,080.

    • Fin Nifty: Intraday resistance is positioned at 22,480, followed by 22,600, while downside support is found at 22,030 followed by 21,800.

Derivative Market Analysis

  1. Nifty:

    • Nifty’s highest call OI addition is at 24,000, with immediate resistance at 23,400.

    • Significant put OI addition is also at 23,400, suggesting a corrective bias towards 23,000 if the price holds below 23,400.

    • Call writers see 23,400 and 23,500 as crucial resistances.

    • Nifty futures are trading at 23,399.25, implying short covering towards 23,500 if 23,400 is surpassed.

    • The put-call ratio for Nifty has increased by 0.18, now at 1.20.

  2. Bank Nifty:

    • The highest call OI addition for Bank Nifty is at the 50,000 level, indicating strong resistance. Conservative call writing is at 51,000, marking the next crucial resistance level.

    • On the put side, aggressive OI addition is also at 50,000, with significant buildup at 48,500 puts as a precautionary measure.

    • The straddle at 50,000 is robust, suggesting a major upward move if this level is breached.

    • The put-call ratio for Bank Nifty has decreased by 0.10, now at 0.82.

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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