Share Market Update | April 26, 2024

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Synopsis:

Explore the latest market updates including Tata Steel’s ₹13,000 crore investment in collaboration with the UK Government, NHPC’s ₹337.6 crore fine to L&T over hydro project dispute, IndiGo’s 30 Airbus order, Inox Wind’s 3:1 bonus issue, Nestle India and Dr. Reddy’s Laboratories’ JV, and more. Plus, get detailed insights on FII DII data, option chain analysis, and outlook on global and Indian share markets.

Latest Market News

  1. Tata Steel proceeds with ₹13,000 crore investment in collaboration with the UK Gov to build Furnace in Port Talbot.
  2. US Q1 GDP growth disappoints investors. The Treasury yields surge and market sentiments weaken.
  3. NHPC was directed to pay ₹337.6 crore to L&T in the hydro project dispute.
  4. IndiGo places a massive order of 30 Rolls Royce-powered Airbus A350-900 aircraft.
  5. Inox Wind approves the 3:1 bonus issue for its shareholders.
  6. Nestle India and Dr Reddy’s Laboratories to form a joint venture on nutritional health solutions.
  7. FIIs sell ₹2,823.33 crore while DIIs buy ₹6,167.56 crore in equities on Thursday.

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

US Share Market News

1. Performance Overview:

  • US stocks fell on Thursday as Meta's dismal forecasts hit the tech sector, and Japan's yen dropped below 155 per dollar for the first time since 1990. The market also faced pressure from weak US GDP data.
  • Treasury yields gained as the US economic growth in Q1 was lower than expected at 1.6%, while inflation surged higher than anticipated at 3.7%. Some economists are concerned about stagflation, but some argue that the growth wasn't as weak as the report indicated.

2. Economic Indicators:

  • Inflation in the US spiked this quarter, causing worries about the Fed possibly hiking interest rates to control it. Investors keep an eye out for the PCE price index, the Fed's favorite gauge of inflation, coming out later today.

3. Sector-Specific Movements:

  • The Dow Jones dropped almost 375 points to 38,085 (-0.98%), the S&P 500 slipped by about 23 points to 5,048 (-0.46%), and the Nasdaq fell nearly 101 points to 15,611 (-0.64%).

4. Corporate Earnings:

  • Shares of Alphabet and Microsoft rose after beating Wall Street expectations in their latest earnings reports.
  • On the flip side, Intel saw an 8% drop in after-hours trading as it predicted lower-than-expected revenue and profit for the next quarter.

Other Asset Classes

1. Treasury Yields:

  • The yield on US 10-year bonds rose by 5 basis points to 4.704% and that on the yield on 2-year notes went up by 6.3 basis points to 4.9996%.
  • US Treasury yields jumped to their highest level in more than five months because new data hinted at ongoing inflation. The possibility for lower interest rates by the Fed remains less likely.

2. Currency:

  • The dollar index dropped slightly by 0.21% to 105.58, just before the upcoming US Federal Reserve FOMC meeting next week.

3. Commodities:

  • Gold prices rose by 0.69% to $2,331.78 per ounce, while U.S. gold futures settled slightly lower at $2,319.90 per ounce, down 0.2%.
  • Brent crude futures closed up 1.1% at $89.01 per barrel, while U.S. West Texas Intermediate crude futures rose 0.9% to $83.57. This is due to optimism about the U.S. economy, despite weak first-quarter data and ongoing Middle East conflict drove the gains.

Asian Markets

1. General Trends:

  • Asia-Pacific markets began with mixed sentiments on Friday as investors remained focused on the Bank of Japan's policy decision and Tokyo's inflation data.

2. Specific Index Performance:

  • Japan's Nikkei 225 started with a slight increase of 0.17%, while the Topix remained slightly above the previous close.
  • South Korea's Kospi rose by 0.53%, and the smaller Kosdaq gained even more at 0.75%

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty suggests that the Indian Market today will likely open flat to positive. If Nifty stays above 22500, the outlook remains positive, with the index possibly reaching 22630.

2. Nifty Short-Term Outlook:

  • Stocks started the day weak but bounced back, with Nifty closing 0.75% higher at 22570 and Bank Nifty up 0.63% at 48494. The broader market also rose, with Nifty Midcap and Smallcap up 0.4% and 0.8% respectively.
  • The index shows bullish signs, closing above 22500 and aiming for 22775. However, with daily stochastic indicating overbought conditions, some consolidation is expected.
  • Short-term support is at 22000, being a mix of the rising channel’s lower band since Jan 2024 and a 61.8% retracement level between 21777 and 22476.

3. Intraday Levels:

  • Nifty: Today's resistance levels for Nifty are at 22630 and 22690. On the other hand, the downside support stands at 22500 and 22430.
  • Bank Nifty: The current resistance levels for Bank Nifty are at 48650 and 48890, with support levels at 48280 and 48050.
  • Fin Nifty: Fin Nifty is likely to face resistance around 21610 and 21700 during the day. If it inches downward, it might find support at 21460 and 21380.

Derivative Market Analysis

1. Nifty:

  • The 22,500 level holds the highest Put OI, with 22,400 as immediate support. If the price dips below 22,400, a correction could occur. On the flip side, major call OI is at 22,900, with immediate resistance at 22,600. Both put and call OI at 22,500 suggest a straddle formation, a key level for the day.
  • The immediate range is likely between 22,400 and 22,600, with breaks potentially prompting directional shifts.

2. Bank Nifty:

  • The highest call OI is at 50,000, with immediate resistance at 48,500. If the price holds above 48,500, it may move towards 49,000. Major put OI at 48,000 forms strong support.
  • The Bank Nifty's immediate range is 48,000 to 48,500, with potential for movement beyond this range.

Stay ahead of the game with Bajaj Broking’s real-time market insights. Our expert analysis goes beyond the surface, unravelling the complexities of the global stock market. Stay updated with the latest market news, including US share market updates and maximise your investment potential.

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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