Share Market Today | Nasdaq Hits Record Close, Gift Nifty Strong

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Synopsis:

Today’s latest market updates include US April PPI data surpassing estimates at 0.5%, Siemens’ approval for splitting its energy business, Promoter Group’s plan to sell a 2.53% stake in Cipla, Macrotech’s ₹3,500-4,000 crore investment, MSCI India Index rejig, plus other global market news.

Latest Market News

  1. The US April Producer Price Index surpasses estimates at 0.5% (MoM) and meets expectations at 2.2% (YoY).
  2. Siemens board has approved splitting its energy business into a separate entity, offering shareholders one share in Siemens Energy for each held.
  3. Promoter Group has planned to sell up to 2.53% stake in Cipla via a block deal, with an offer size of ₹2,637 crore and a price range of ₹1,289.5-1,357.35 per share.
  4. Macrotech Developers to invest ₹3,500-4,000 crore in this fiscal year for land acquisitions.
  5. MSCI India Index announces 13 additions and 3 deletions in the May review, while MSCI India Small Cap Index reveals 29 additions and 15 deletions.
  6. FIIs sold ₹4,065.52 crore, while DIIs bought ₹3,527.86 crore worth of equities yesterday.

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

US Share Market News

1. Performance Overview:

  • On Tuesday, the Nasdaq hit a record-high close, joined by gains in the S&P 500 and the Dow. Investor confidence got a lift from Federal Reserve Chair Jerome Powell's reassurance amid data review, ahead of Wednesday's awaited consumer inflation report.

2. Economic Indicators:

  • April saw higher-than-expected US producer prices due to increased costs for goods and services, leading to reduced expectations for a September rate cut.
  • Powell described the producer price index report as mixed, downplaying inflation concerns amid downward revisions in prior data. He also suggested the next interest rate move wouldn't be a hike despite recent inflation.
  • Wednesday's awaited Consumer Price Index figures will determine if the first quarter's positive surprises continued into April. Additionally, US retail sales data for April is expected later in the day.

3. Sector-Specific Movements:

  • The Dow Jones Industrial Average climbed 126.60 points (+0.32%), reaching 39,558.11 and the S&P 500 saw a gain of 25.26 points (+0.48%), closing at 5,246.68. Additionally, the Nasdaq Composite surged 122.94 points (+0.75%), settling at 16,511.18.

Other Asset Classes

1. Treasury Yields:

  • On Tuesday, the 10-year US Treasury yield dipped slightly as traders considered a higher-than-anticipated wholesale inflation report. Initially rising above 4.5%, the yield settled around 4.445% after the release of the new data.

2. Currency:

  • After an initial spike, the Dollar Index eased and concluded the session near its lows, down by 0.2% at 104.88.

3. Commodities:

  • Oil prices dipped amid worries over high interest rates, but risks from Middle East tensions and Canadian wildfires stabilised prices. Brent crude closed 1.18% lower at $82.38, while US West Texas Intermediate settled 1.39% down at $78.02.
  • Gold pieces surged, supported by a retreat in both the dollar and Treasury yields. Spot gold was up by 0.7% to reach $2,351.30 per ounce, rebounding from a 1% dip the day prior. Meanwhile, US gold futures experienced a 0.6% uptick, reaching $2,356.70.

Asian Markets

1. General Trends:

  • On Wednesday, Asia-Pacific markets kicked off on a positive note, following the upward trend set by Wall Street overnight.
  • Despite robust inflation data, the Nasdaq Composite index achieved a fresh record closing high, signalling a strong start to the trading day.

2. Specific Index Performance:

  • Japan’s Nikkei 225 surged by 0.75%, alongside a rise of 0.53% in the broader Topix index.
  • The markets in South Korea and Hong Kong observed closure on Wednesday in observance of a public holiday.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty suggests Nifty spot opens positively, supported by strong global indicators. It is anticipated to maintain a favourable momentum, likely fluctuating within the range of 22150-22350.

2. Nifty Short-Term Outlook:

  • Nifty closed higher by 0.5% at 22217, marking its third consecutive session of gains, with an intraday high of 22270. Bank Nifty saw marginal gains, closing at 47859, up by 0.22%. The broader market outperformed, with Nifty midcap and small-cap closing higher by 1% and 2% respectively.
  • The daily chart shows a bullish trend, with potential for further upward movement towards 22400 if it holds above Tuesday's low of 22081.
  • Nifty is expected to consolidate between 21700-22400 with support at 21700-21800 and resistance at 22400, being the 61.8% retracement of the recent decline (22794-21821).

2. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22310, followed by 22370 levels. Conversely, downside support is located at 22180, followed by 22120.
  • Bank Nifty: Intraday resistance is positioned at 48150, followed by 48370, while downside support is found at 47770, followed by 47510.
  • Fin Nifty: Intraday resistance is positioned at 21360, followed by 21430, while downside support is found at 21210, followed by 21130.

Derivative Market Analysis

1. Nifty:

  • The Nifty's option chain shows the highest call OI at 23,000 and immediate addition at 22,300, possibly moving to 22,500. Strong put OI at 22,000 and 22,100 levels suggests solid support, while shifts at 22,000 indicate positive sentiment.
  • The decisive range is between 22,100 and 22,300, with potential directional moves upon breaking it. Nifty's put-call ratio rose to 1.03, signalling positivity, alongside a 1.1% OI rise and 0.5% price increase, indicating a long build-up.

2. Bank Nifty:

  • As per option chain data, Bank Nifty’s immediate resistance lies at 48,000, while strong support is at 47,500. Call and put writers have adjusted positions positively. The deciding range is between 47,500 and 48,000.
  • There's a 3.6% rise in open interest alongside a 0.1% price increase, suggesting a long build-up in Bank Nifty. The max pain level is at 47,800

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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