Share Market Today | Gift Nifty Flat, Nasdaq Hits Record High

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Synopsis:

Today’s latest market updates include RVNL’s ₹187.34 crore bid for the Maharashtra Metro Rail project, AdaniPorts will replace Wipro in Sensex from June 24, Cello World plans QIP fundraising, GAIL launches its first 10 MW Green Hydrogen Plant, plus other global market news.

Latest Market News

  1. RVNL wins ₹187.34 crore bid for Maharashtra Metro Rail project.
  2. AdaniPorts to join Sensex on June 24, replacing Wipro.
  3. FTSE adds JSWInfra, TataTech, and IREDA to All World and All Cap indices in the May review.
  4. Cello World board to discuss QIP fundraising on May 29, 2024.
  5. GAIL launches its first 10 MW Green Hydrogen Plant in Madhya Pradesh.
  6. FIIs sell ₹944.83 crore in equities while DIIs buy ₹2,320.32 crore on Friday.

Additional Read: Share Market News

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

US Share Market News

  1. Performance Overview:

On Friday, the Nasdaq hit a record-high close, supported by Nvidia's surge. This positive end to the week offset worries about rising interest rates. Trading volumes were quite ahead of the Memorial Day holiday.

  1. Economic Indicators:

The CME Fed watch tool suggests a 45% likelihood that the Fed will decrease rates from 5.25% to 5.5% in September, marking a shift from a level that's been at a more than two-decade high.

PCE price index, the Fed's key inflation measure, is set to be released on Friday. Expectations hint at a slight drop in spending, aligning with Fed warnings on persistent inflation delaying rate cuts.

The durable goods orders increased by 0.7% in April, down slightly from the previous month's growth of 0.8%.

  1. Sector-Specific Movements:

The S&P 500 rose by 0.7% to reach 5,304.72 points. The Nasdaq set a new record high, climbing by 1.1% to 16,920.79 points. Meanwhile, the Dow remained unchanged at 39,069.59 points.

  1. Quarterly Results:

Technology drove the market up as investors capitalised on the previous day's dip in major tech stocks, while also showing confidence in chipmaker NVIDIA Corporation after its strong first-quarter earnings.

Other Asset Classes

  1. Treasury Yields:

On Friday, the US Treasury yields held steady, as investors considered the latest economic data. The 10-year yield dipped slightly to 4.467%, while the 2-year yield increased to 4.948%.

  1. Currency:

The dollar dipped as traders cashed in on recent gains. However, it's still in a good position for more growth, thanks to robust US economic data. The dollar slid 0.3% to 104.74 against a basket of currencies.

  1. Commodities:

Crude oil futures rebounded from a three-month low on Friday, despite ending the week with a loss. As the Memorial Day holiday kicks off the summer driving season, US crude hit $76.15, its lowest since Feb. 26. Meanwhile, Brent dropped to $80.65, its lowest since Feb. 8.

Gold prices climbed on Friday with a weakening dollar, though they're set for their toughest week in five and a half months due to expectations of US central bank interest rate adjustments. Spot gold edged up 0.2% to $2,332.77 per ounce.

Asian Markets

    • General Trends:

Asia-Pacific markets rose on Monday as investors awaited key economic data from China and India, including China's PMI on Friday and India's Q4 GDP figures.

  1. Specific Index Performance:

Japan’s Nikkei 225 and Topix indices rose by 0.39% and 0.4%, respectively, recovering from previous losses.

South Korea’s Kospi increased by 0.3%, and the small-cap Kosdaq gained 0.35%.

India Market Outlook

    • GIFT Nifty Projection:

Gift Nifty suggests a flat to positive start for the Indian market, with the Nifty expected to trade between 22900-23050 with a positive bias. Stock-specific action is anticipated.

  1. Nifty Short-Term Outlook:

Benchmark indices hit new highs for the second week, with Nifty closing up 2.02% at 22957 and Bank Nifty up 1.6% at 48971. The Nifty midcap index also gained 1.07%, continuing its record-setting rally.

The index formed a strong bullish candle with higher highs and lows, indicating increased upward momentum. It broke out above the 3-month consolidation range of 21700-22800.

We remain positive on Nifty, expecting it to reach 23300 in the coming weeks, with dips seen as buying opportunities and immediate support at 22700-22800. The rapid retracement of the previous consolidation suggests a robust price structure, although volatility may increase ahead of the General election and Q4 earnings season.

Major support levels for the Nifty are at 22400 and 22500 levels, being the confluence of the 20-day EMA and the bottom of the previous week.

  1. Intraday Levels:

Nifty: Intraday resistance is situated at 23030, followed by 23100 levels. Conversely, downside support is located at 22910, followed by 22860.

Bank Nifty: Intraday resistance is positioned at 49150, followed by 49390, while downside support is found at 48810, followed by 48600.

Fin Nifty: Intraday resistance is positioned at 21930, followed by 22000, while downside support is found at 21770, followed by 21680.

Additional Read: Commodities Market Today

Derivative Market Analysis

    • Nifty:

The 23,000 level has emerged as a key resistance zone with significant call and put OI additions, indicating it as a decisive level for market direction.

A sustained move above 23,000 could trigger short covering, while staying below this level may lead to a corrective trend. The shift of major put writers to the 23,000 level suggests a positive bias.

The Nifty's immediate range is 22,800 to 23,000, and a break outside this range could lead to a further directional move.

The put-call ratio has decreased to 1.14, with the Nifty seeing a 4.0% increase in open interest and a 0.1% rise in price, suggesting a long build-up.

  1. Bank Nifty:

The Bank Nifty shows strong support at the 48,500 level, with significant put option interest at both 48,000 and 48,500.

On the upside, the highest call option interest is at 50,000, with immediate resistance at 49,000, where surpassing this level may trigger short covering.

Option chain analysis indicates put writers shifting to higher levels, suggesting bullish sentiment. The current range is 48,500 to 49,500, and a breakout in either direction could determine the next trend.

The Bank Nifty's 4.1% increase in open interest and 0.4% price rise indicates a long buildup.

  1. Midcap Nifty:

For the weekly expiry, the highest call open interest (OI) addition at 11,500 suggests a strong resistance level, while active put writing below 11,400 indicates multiple support levels.

According to the option chain, the immediate range for Midcap Nifty is 11,400 to 11,500, and a break outside this range could trigger a further directional move.

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 and global stock markets. 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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