Share Market Today | Gift Nifty Positive, Global Cues Strong

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Synopsis:

Latest market updates: Cochin Shipyard secures ₹500-1000 crore Hybrid SOV contract from Europe. India's April retail inflation drops to 4.83%. TCS to establish an AI Center in France. Shriram Finance sells its housing arm for ₹4,630 crore. Plus, other global market news.

Latest Market News

  1. Cochin Shipyard has secured a contract worth ₹500-1000 crore from a European client for Hybrid SOVs.
  2. RVNL has been awarded a ₹239 crore order from Southern Railway.
  3. India's retail inflation has dropped to 4.83% in April.
  4. Coromandel International is planning to acquire an additional 6.99% stakeholding in Dhaksha Unmanned Systems for ₹150 crore.
  5. TCS is planning to establish an innovative human-centric AI Center of Excellence in France.
  6. Shriram Finance plans to sell its housing finance arm to Warburg Pincus for ₹4,630 crore.
  7. Vedanta will explore fundraising options, including equity shares, through FPO or rights issues on May 16.
  8. Hindalco has confirmed Novelis Inc.'s registration statement on Form F-1 with the SEC for the proposed IPO.
  9. FIIs sell equities worth ₹4,498.92 crore, while DIIs buy equities worth ₹3,562.75 crore in yesterday’s trading session.

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

US Share Market News

1. Performance Overview:

  • On Monday, the S&P 500 stayed steady, closing almost flat. Investors are waiting for producer price index (PPI) and consumer price index (CPI) data reports about inflation, which are coming out later this week. These reports will probably affect how the Federal Reserve plans its money policies.

2. Economic Indicators:

  • PPI data is expected on Tuesday and CPI on Wednesday, which are important indicators for inflation. Inflation stayed pretty stable in the first quarter, so there's less talk about the Federal Reserve cutting interest rates this year.
  • The Fed is still leaning towards keeping interest rates higher for longer. Vice Chair Philip Jefferson mentioned on Monday that they're okay with the current interest rates until they see more signs of inflation reaching their 2% target.

3. Sector-Specific Movements:

  • Stocks had a mixed day, with the Dow Jones falling slightly, the S&P 500 staying almost the same, and the NASDAQ going up a bit. It's been a good start to the week for Wall Street after three weeks of gains last week, boosted by strong earnings and hopes for future interest rate cuts.

Other Asset Classes

1. Treasury Yields:

  • On Monday, US Treasury bond yields dipped slightly as investors monitored inflation data and remarks from Federal Reserve officials. The 10-year Treasury yield dropped 2 basis points to 4.485%, while the 2-year yield fell by almost 1 basis point to 4.861%.

2. Currency:

  • The dollar index stayed within a certain range before important inflation data came out. By the end of the session, it closed just a bit lower at 105.10 levels.

3. Commodities:

  • Oil prices rose because China's demand appeared to be improving. Additionally, there were problems getting oil from Canada, which helped prices bounce back from a $1 drop in the last session. Brent crude futures went up by 0.5% to $83.21 a barrel, and US WTI crude futures increased by 0.8% to $78.92 a barrel.
  • Gold prices dropped a bit as investors took profits. They're keeping an eye on inflation numbers this week to figure out if the US will cut interest rates. Spot gold dropped almost 1% to $2,337.04 per ounce after reaching its highest point since April 22 last Friday. US gold futures also fell 1.3% to $2,343.60.

Asian Markets

1. General Trends:

  • On Tuesday morning, most of the Asia-Pacific markets went up. According to the Bank of Japan, business prices stayed the same in April compared to last year, but import costs shot up by 6.4% last month, probably because the yen dropped a lot.

2. Specific Index Performance:

  • Japan's Nikkei 225 went up by 0.7%, and the broader Topix increased by 0.6%.
  • In South Korea, the Kospi went up by 0.18%, and the smaller-cap Kosdaq surged by 1% in today's morning trading.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty suggests that the Indian market will likely start on a good note, following strong global signals. The Nifty spot is expected to stay steady, leaning towards positivity, within the range of 22020 to 22230.

2. Nifty Short-Term Outlook:

  • Nifty opened weak but rebounded from intraday lows, closing at 22104, up 0.22%. Bank Nifty rose by 0.7% to 47754, breaking an 8-session decline.
  • The daily chart shows a bullish candlestick pattern, suggesting buying interest near 21700-21800 support. Sustaining above recent highs at 22130 could push Nifty towards 22300-22400.
  • Expect consolidation between 21700-22400 amid volatility. A 4.5% correction could find support at 21700, aligned with the 100-day EMA. Resistance lies at 22300-22400, marked by Fibonacci retracement and the 20-day EMA at 22313.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22170, followed by 22250 levels. Conversely, downside support is located at 22020, followed by 21940.
  • Bank Nifty: Intraday resistance is positioned at 47950, followed by 48170, while downside support is found at 47580, followed by 47350.
  • Fin Nifty: Intraday resistance is positioned at 21340, followed by 21430, while downside support is found at 21160, followed by 21050.

Derivative Market Analysis

1. Nifty:

  • The Nifty's option chain data indicates significant interest in call options at the 22,500 level, with call writers active above 22,200, suggesting resistance levels. If the price surpasses 22,200, there could be short covering towards 22,500.
  • On the downside, put writers are strong at 21,500, with immediate support at 22,000. The crucial range for the Nifty is between 22,000 and 22,200, with potential for directional movement upon breaking this range.
  • The put-call ratio increased to 0.97, indicating a slight preference for puts. Nifty saw a 3.2% rise in open interest and a 0.3% price increase, indicating a long buildup.

2. Bank Nifty:

  • The Bank Nifty's option chain suggests key levels as 48,000 and 47500 acting as resistance and support, respectively. Call unwinding above 47,500 and put writers shifting positions at higher levels suggest positive signs.
  • So, the immediate range is between 47,500 and 48,000, with potential for significant movement upon breaking this range.
  • The Bank Nifty saw a 3.1% decline in open interest and a 0.8% price rise, hinting at short covering.

3. Fin Nifty:

  • For today’s weekly expiry, call writers are active above 21,400, indicating resistance, while put writers are present below 21,200, signalling strong support, especially at 21,000. This suggests that Fin Nifty is likely to consolidate between 21,400 and 21,200 levels.

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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