Share Market Today | Gift Nifty Strong, Dow Hits 40k Mark

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Synopsis:

Today’s latest market updates include eClerx Services’ buyback at 16% premium, Norwegian Bank excludes AdaniPorts from its Pension Fund, M&M's approval for ₹12,000 Cr EV investment, Coforge and Fiorano’s partnership, PBFintech’s 1.86% equity block deal, plus other global market news.

Latest Market News

  1. eClerx Services plans to buy back shares at a 16% premium through a tender offer.

  2. Norway’s Norges Bank is excluding AdaniPorts from its Government Pension Fund due to unacceptable risk and human rights violations.

  3. US initial jobless claims fell to 222,000 for the week ending May 11, down from 232,000 the previous week.

  4. M&M's board approves a ₹12,000 crore investment in its EV subsidiary MEAL over the next three years.

  5. Coforge and Fiorano are partnering to offer ISO 20022 compliance as a service.

  6. PBFintech promoters will sell up to 1.86% equity via block deals to fund tax payments and future ESOP exercises.

  7. FIIs sold ₹776.49 crore in equities while DIIs bought ₹2,127.81 crore in yesterday’s trading session.

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

US Share Market News

  1. Performance Overview:

    • The Dow Jones hit 40,000 for the first time, with global stocks also reaching record highs. Optimism about US interest rate cuts and solid earnings drove the surge.

    • However, late trading saw stocks flatten out as some Federal Reserve officials cautioned against premature rate cut expectations.

  2. Economic Indicators:

    • On Wednesday, the US consumer prices cooled down, but on Thursday, the US jobless claims dropped and import prices rose by 0.9% for the last month.

    • Several Fed officials cautioned on both Wednesday and Thursday that the central bank requires more certainty before considering interest rate cuts, with the timing still uncertain.

  3. Sector-Specific Movements:

    • On Thursday, the Dow Jones Industrial Average dropped by 0.10% to 39,869.38 points, the S&P 500 fell 0.21% to 5,297.12 points, and the Nasdaq Composite decreased by 0.26% to 16,698.32 points.

Other Asset Classes

  1. Treasury Yields:

    • US Treasury yields rose on Thursday after hitting a six-week low. Investors analysed new economic data and its potential impact on Federal Reserve policy. The 10-year Treasury yield climbed over 2 basis points to 4.381%.

  2. Currency:

    • The dollar strengthened as US import prices surged 0.9% last month, fueling concerns that the Federal Reserve might postpone interest rate cuts. The dollar index rose 0.27% to 104.47.

  3. Commodities:

    • Oil prices went up on Thursday as US stockpiles dropped for the second week and inflation slowed down. U.S. crude settled at $79.23 a barrel, up by 60 cents, while Brent settled at $83.27, climbing 52 cents.

    • Gold prices dipped slightly with the dollar's rise, but the prospect of US interest rate cuts this year, fueled by easing inflation, kept gold near its recent high. Spot gold slipped 0.3% to $2,377.93 per ounce, following a 1% gain on Wednesday.

Asian Markets

  1. General Trends:

    • Asia-Pacific markets paused today after a recent rally, with investors waiting for important data from China to understand how the world's second-largest economy is doing.

    • This data, covering new house prices, urban unemployment, and April's retail sales figures, is expected later in the day.

  2. Specific Index Performance:

    • Japan's Nikkei 225 dropped by 0.78% at the start of trading, and the Topix fell by 0.33%.

    • South Korea's Kospi also decreased by 0.11%, with the country's unemployment rate holding steady at 2.8% in April. Additionally, the Kosdaq fell by 1.66%.

India Market Outlook

  1. GIFT Nifty Projection:

    • Gift Nifty suggests the Indian market will likely start with a positive note today. The Nifty spot is expected to trade within the range of 22330-22550 levels, leaning towards the positive side.

  2. Nifty Short-Term Outlook:

    • Benchmark indices closed strong despite early volatility. Nifty rose 0.92% to 22403.85, recovering from a mid-session drop to 22054. Bank Nifty gained 0.6% to 47977. Midcap and small-cap indices rose 0.9% and 0.95%, respectively.

    • A bull candle with a long lower shadow on the daily chart indicates buying at lower levels and a continued pullback, with Nifty closing above the 20-day EMA at 22300.

    • If the price exceeds yesterday's high (22432), it may extend the pullback to 22550-22600, reflecting an 80% retracement of the recent decline (22794-21821) and aligning with the previous up move (21822-22300) from yesterday's low (22055). Otherwise, expect consolidation within the 22000-22400 range.

  3. Intraday Levels:

    • Nifty: Intraday resistance is situated at 22480, followed by 22550 levels. Conversely, downside support is located at 22330, followed by 22250.

    • Bank Nifty: Intraday resistance is positioned at 48190, followed by 48370, while downside support is found at 47850, followed by 47580.

    • Fin Nifty: Intraday resistance is positioned at 21490, followed by 21570, while downside support is found at 21340, followed by 21250.

Derivative Market Analysis

  1. Nifty:

    • The highest call OI addition for Nifty is at 23,000, with immediate resistance at 22,500. If the price exceeds 22,500, it could move toward 23,000.

    • Major put OI additions are seen at 22,000 and 22,200, serving as support levels. Call writers have shifted to higher levels, indicating caution about upside movement.

    • The put-call ratio has risen to 1.19. Nifty saw a 1.6% rise in open interest and a 0.7% price increase, indicating a long build-up.

  2. Bank Nifty:

  • Accumulation of call and put OI at the 48,000 strike indicates a straddle formation and a key level. If the price surpasses and holds above 48,000, short covering could push it toward 48,500.

  • Major put OI at 47,500 serves as immediate support for the Bank Nifty. Option chain analysis suggests an immediate range for the Bank Nifty between 47,500 and 48,000, with significant movement possible if the range breaks.

  • Bank Nifty saw a 0.9% decline in open interest and a 0.4% price increase, indicating short covering.

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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