Share Market Update | April 24, 2024

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Synopsis:

Explore the latest market updates including Rama Steel Tubes’ ₹500 crore FPO approval, NBCC’s contract book hitting ₹23,500 crore in FY 24, 8.8% decline in India’s agriculture exports, USFDA’s Establishment Inspection Report for Lupin’s Aurangabad plant, and more. Plus, detailed insights on global and Indian share markets.

Latest Market News

  1. Rama Steel Tubes FPO receives board approval for raising ₹500 crore.
  2. NBCC secures new contracts totalling ₹23,500 crore in FY24, marking a significant increase from ₹6,700 crore in the previous year.
  3. India sees an 8.8% decline in agricultural exports year-over-year due to restrictions on cereals, onions, and maise.
  4. Dr Reddy's Laboratories recalls six lots of Sapropterin Dihydrochloride Powder for Oral Solution 100 mg in the U.S. voluntarily, citing powder discolouration affecting potency.
  5. Lupin receives an Establishment Inspection Report (EIR) from the USFDA for its Aurangabad manufacturing facility.
  6. Foreign institutional investors (FIIs) sold ₹3,044.54 crore while domestic institutional investors (DIIs) purchased ₹2,918.94 crore in equities on the previous day.

Detailed Global Market Insight: U.S. and International Stocks, Other Asset Classes, and Asian Market

U.S. Stock Market

1. Performance Overview:

  • Global shares rose as Wall Street investors focused on US mega-cap earnings, while the Japanese yen hit multi-year lows ahead of the Bank of Japan policy meeting this week.
  • Optimism surged with easing Middle East tension fears, strong company earnings focus, and positive business activity surveys indicating growth in Germany and the eurozone.

2. Economic Indicators:

  • Market participants now expect the Fed's first rate cut in September, expecting only 40 basis points of cuts this year, down from earlier forecasts of 150 basis points.
  • The key economic indicators from the US this week that remain in focus include business activity, quarterly economic growth, and monthly inflation rates.

3. Sector-Specific Movements:

  • Stock markets had a good day with the Dow Jones up by 0.69% to 38,503.69, the S&P 500 up by 1.20% to 5,070.55, and the Nasdaq Composite climbing 1.59% to 15,696.64. Big tech stocks did particularly well in anticipation of upcoming quarterly reports.

4. Corporate Earnings:

  • Tesla's first-quarter revenue dropped, but their announcement of new models coming before the second half of next year caused a nearly 9% surge in after-hours trading for their shares.

Other Asset Classes

1. Treasury Yields:

  • Treasury yields decreased as recent data revealed a slowdown in U.S. business activity, hitting a four-month low. Specifically, the yield on the key U.S. 10-year notes dropped by 1.9 basis points to 4.605% from its previous level of 4.623% recorded late on Monday.

2. Currency:

  • The dollar eased slightly from its recent peak, yet remained well-supported, closing yesterday's session at 105.48.
  • Investors believe the Federal Reserve won't cut interest rates soon, buoyed by rising Treasury yields reaching their highest levels since November. 

3. Commodities:

  • Gold prices continued to decline, with spot gold dropping by 0.2% to $2,321.57 per ounce, while U.S. gold futures settled 0.2% lower at $2,342.10.
  • Brent crude futures increased by 1.63% to reach $88.42 per barrel, while U.S. crude settled up by 1.78% at $83.36. Investors kept a close eye on the Middle East, causing oil prices to climb.

Asian Markets

1. General Trends:

  • Asia-Pacific markets continue to rise as Wall Street's rally persists and investors await Australia's first-quarter inflation data.

2. Specific Index Performance:

  • Japanese Nikkei 225 and Topix, rose in morning trade by 1.27% and 0.71% respectively.
  • South Korea's Kospi surged by 1.85%, led by Samsung Electronics, while Kosdaq gained 1.25%.

India Market Outlook

1. GIFT Nifty Projection

  • Gift Nifty predicts a bright start for the Indian market, driven by global optimism. Nifty Spot is anticipated to continue its recent upward trend and trading positively within the range of 22500-22350.

2. Nifty Short-Term Outlook:

  • Nifty opened positively, reaching an intraday high of 22447 before closing at 22368, up by 0.1%, while Bank Nifty closed at 47970, also up by 0.1%. Nifty Midcap and Nifty Small outperformed, closing 1.1% and 1.3% higher, respectively.
  • Despite a small bear candle, the overall bias remains positive, with expected volatility due to global cues, and Nifty is likely to rise towards 22500-22600 levels.
  • Short-term support for Nifty is expected to be around 21700-21800 levels, supported by March 2024 lows and key retracement levels.

3. Intraday Levels:

  • Nifty: Nifty is expected to face intraday resistance at 22480 and 22540 levels while finding support at 22350 and 22290 levels.
  • Bank Nifty: Ahead of weekly expiry, the intraday resistance for Bank Nifty is at 48330 and 48550, with downside support at 47900 and 47670.
  • Fin Nifty: Intraday resistance for Fin Nifty is predicted at 21450 and 21530, with downside support at 21300 and 21230.

Derivative Market Analysis

1. Nifty:

  • Call writers are active above 22,400, with significant call OI at 23,000 indicating resistance, while put writers are present below 22,300, with major put OI at 22,000 suggesting support.
  • Option chain analysis indicates positive sentiment with a decreasing put-call ratio and Nifty futures showing a 5.7% uptick in Open Interest alongside a 0.1% price increase, implying a long build-up.

2. Bank Nifty:

  • Accumulation of OI at 48,000 suggests it to be a decisive level. If the resistance at 48,000 is surpassed, short covering can be witnessed. If Bank Nifty holds below 48,000, it may lead to a corrective bias towards 47,500.
  • Bank Nifty futures indicate short covering as OI declines by 4.1% while the price remains unchanged.

Navigate through the complexities of the market with Bajaj Broking’s comprehensive share market update. Beyond just the number, delve into the narratives shaping the Indian share markets today. Stay informed, stay ahead, and make informed choices amidst the ever-changing world of finance.

 

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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Frequently Asked Questions

What exactly is the stock market, and how does it work?

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The stock market is a platform where investors buy and sell shares of publicly traded companies. It operates through stock exchanges, where supply and demand for securities determine prices.

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What are the risks associated with stock market investments?

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What is the difference between long-term investing and trading in the stock market?

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Can I invest in the stock market with a small amount of capital?

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