Share Market Today | Gift Nifty Positive, US Markets Soar

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Synopsis:

Today’s latest market updates include a reduction in Windfall Tax on crude from ₹8,400/ton to ₹5,700/ton, US April Inflation at 3.6% (YoY), QuickHeal’s collaboration with European Group, Mines Minister urges Coal India and NMDC to seek lithium overseas, plus other global market news.

Latest Market News

  1. Windfall Tax on crude oil reduced to ₹5,700 per ton from ₹8,400; no Windfall Tax for Diesel, Petrol & ATF.
  2. The US April Inflation Rate matches estimates at 0.3% (MoM) and 3.6% (YoY).
  3. QuickHeal collaborates with Europe's EET Group for cybersecurity solutions.
  4. Mines minister urges Coal India and NMDC to explore lithium mines abroad.
  5. Thermax identifies green hydrogen and chemicals as key investment sectors.
  6. FIIs sold equities worth ₹2,832.83 crore, while DIIs bought ₹3,788.38 crore in equities yesterday.

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

US Share Market News

1. Performance Overview:

  • The Dow, S&P 500, and Nasdaq hit new highs on Wednesday. This happened because consumer inflation slowed down after three months of higher-than-expected numbers. This made people think interest rates might go up sooner, so Treasury yields dropped a lot.

2. Economic Indicators:

  • For April, the US consumer price index rose by 0.3%, a bit slower than economists predicted. This suggests inflation might be easing, as annual figures dipped to 3.4% from 3.5%. Weak retail sales data from Wednesday further fueled hopes for cooling inflation ahead.
  • Stocks surged as Fed Chair Jerome Powell's upbeat views on US growth, inflation, and interest rates eased concerns after April's high producer prices. 

3. Sector-Specific Movements:

  • The S&P 500 climbed 1.2% to 5,308.15 points, and the NASDAQ Composite surged 1.4% to 16,742.39 points. Meanwhile, the Dow Jones Industrial Average gained 0.9%, closing at a record high of 39,908.0 points.

Other Asset Classes

1. Treasury Yields:

  • After the CPI data released on Wednesday, Treasury yields took a significant dip, with the 10-year Treasury falling by 10 basis points to 4.34%.

2. Currency:

  • The dollar dropped as April's U.S. consumer prices signalled a downward trend in second-quarter inflation. The dollar index hit a one-month low at 104.10.

3. Commodities:

  • The US crude oil prices climbed as domestic inventories fell more than anticipated. West Texas Intermediate for June rose to $78.63 per barrel, up 0.78%, while Brent for July reached $82.75 per barrel, up 0.45%. U.S. oil and Brent have dipped 4% and 5.82% this month, respectively.
  • Gold hit a three-week high on Wednesday, due to a weaker dollar and lower Treasury yields. Spot gold rose 1.2% to $2,386.65 an ounce, with U.S. gold futures for June delivery also up 1.2% at $2,392.40 an ounce.

Asian Markets

1. General Trends:

  • Stocks in the Asia-Pacific region went up on Thursday following record highs on Wall Street, driven by lower inflation numbers.
  • Investors also looked at Japan's GDP data, which showed a bigger contraction than expected, with a 2% drop in the first quarter compared to the 1.5% predicted in a Reuters survey.

2. Specific Index Performance:

  • Japan's Nikkei 225 started 0.9% up today, and the broader Topix rose by 0.54%.
  • South Korea's markets reopened after a midweek break, with the Kospi surging by 1.49% and the smaller cap Kosdaq adding 1.3%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty predicts a positive start for the Indian market, with Nifty expected to open higher. Following a strong start, Nifty Spot may continue trading positively within the range of 22200-22400.

2. Nifty Short-Term Outlook:

  • Benchmark indices traded flat on Wednesday. Nifty opened positively but closed marginally lower at 22200 (-0.1%). Bank Nifty fell 0.4% to 47687, ending its two-session uptrend. Nifty midcap and small-cap indices rose 0.9% and 0.6%, respectively.
  • The daily chart shows consolidation, with Wednesday's session seeing the index retreat from the 20-day EMA and 50% retracement levels (22794-21821). Holding above Tuesday's low (22080) could signal a pullback towards 22400.
  • Nifty is expected to consolidate between 21700-22400 amid volatility. A 4.5% correction would align with 21700, coinciding with the 100-day EMA. Resistance is at 22300-22400, marked by the 20-day EMA and 61.8% retracement levels (22794-21821).

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22330, followed by 22400 levels. Conversely, downside support is located at 22180, followed by 22120.
  • Bank Nifty: Intraday resistance is positioned at 48070, followed by 48350, while downside support is found at 47670, followed by 47520.
  • Fin Nifty: Intraday resistance is positioned at 21320, followed by 21400, while downside support is found at 21170, followed by 21100.

Derivative Market Analysis

1. Nifty:

  • The weekly expiry outlook centres around key levels in the options market. The 22,000 mark holds crucial support, while 22,500 and 22,300 emerge as formidable resistance zones.
  • Active call writing above 22,300 suggests additional hurdles. Option chain analysis highlights 22,000 to 22,300 as the decisive range. The Nifty's put-call ratio at 0.92 leans slightly towards calls.
  • In futures trading, Nifty saw a 0.1% dip alongside a 1.0% decrease in open interest, indicating the unwinding of long positions.

2. Bank Nifty:

  • The addition of aggressive call options at 48,000 may cap upside movement, with potential short covering if surpassed. Conversely, significant put options at the same level indicate downward pressure, possibly targeting 47,500. 
  • Both call and put options accumulating at 48,000 suggest a crucial deciding level. Option chain analysis forecasts a trading range between 47,500 and 48,000, with a breakout likely to trigger a significant move.
  • Bank Nifty's 0.4% price decline alongside a 5.4% increase in open interest signals a buildup of short positions.

d 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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