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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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Frequently Asked Questions

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

Answer Field

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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Answer Field

Investing in the stock market offers the potential for long-term wealth growth, dividend income, portfolio diversification, and ownership stakes in successful companies.

How can I start investing in the stock market?

Answer Field

To begin investing in stocks, individuals can open a brokerage account, conduct research on companies and industries, and start building a diversified portfolio aligned with their investment goals and risk tolerance.

What factors should I consider before investing in stocks?

Answer Field

Important factors to consider include investment goals, risk tolerance, time horizon, market research, diversification, and staying informed about economic and market trends.

What are the risks associated with stock market investments?

Answer Field

Risks include market volatility, liquidity risk, company-specific risks, and the potential for loss of capital. It's essential for investors to assess their risk tolerance and diversify their portfolios accordingly.

How do I stay informed about daily market happenings?

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You can stay informed by monitoring financial news websites, market analysis reports, earnings announcements, economic indicators, and utilising real-time market data provided by reliable brokerage platforms.

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

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Long-term investing involves holding stocks for extended periods, typically years or decades, with a focus on capital appreciation and dividend income. Trading involves buying and selling stocks more frequently, often based on short-term price movements.

How can I mitigate risks in the stock market?

Answer Field

Risk mitigation strategies include diversifying your portfolio, setting stop-loss orders, conducting thorough research, avoiding over-leveraging, and maintaining a long-term perspective on investments.

Are there any specific tax implications associated with stock market investments?

Answer Field

Yes, tax implications vary depending on factors such as investment duration, type of account (e.g., taxable brokerage account, retirement account), and realised gains or losses from selling stocks.

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

Answer Field

Yes, many brokerage platforms offer fractional investing or allow investors to purchase partial shares, enabling individuals with limited capital to start investing in the stock market with smaller amounts.

What are government bonds in India, and how do they work?

Answer Field

Government bonds in India serve as a financing tool for public initiatives, provided by the government. Investors buy these bonds, receiving fixed interest payments. They are a reliable option, offering security and predictable returns.

What are the benefits of investing in government bonds compared to other investment options?

Answer Field

Government bonds offer safety and stability, ideal for risk-averse investors. Compared to equities, they provide predictable returns, helping in portfolio diversification. Additionally, they are less volatile, making them suitable for long-term financial planning.

How can I buy government bonds in India, and what are the steps involved in the purchasing process?

Answer Field

To understand how to buy government bonds in India, investors can participate in Reserve Bank auctions, purchase through brokers, or invest in GILT mutual funds. A Demat account is necessary, followed by transaction completion on selected platforms.

What are the different types of government bonds available for investment in India?

Answer Field

India offers several government bonds, including treasury bills, sovereign gold bonds, and long-term bonds. Each type has distinct tenures and interest rates, catering to different investment needs, from short-term liquidity to long-term stability.

How do I determine the best government bonds to invest in India based on my financial goals?

Answer Field

Choosing the best government bonds to invest in India depends on individual goals. Short-term bonds offer liquidity, while long-term bonds provide stability. Consider factors like maturity, interest rates, and inflation protection for tailored investment decisions.

What factors should I consider when evaluating government bonds for investment?

Answer Field

Key factors include interest rates, inflation trends, and bond maturity. Evaluating these aspects helps in aligning bond choices with financial goals, especially for conservative portfolios. GILT mutual funds diversify risks across multiple government bonds.

How can I invest in government bonds through the online platform or through a broker?

Answer Field

Investors can invest in government bonds via online platforms, brokers, or banks. Online options facilitate participation in auctions and secondary markets, offering a streamlined process for how to invest in government bonds conveniently.

What are the tax implications of investing in government bonds in India?

Answer Field

Interest from government bonds is taxed according to the investor’s income bracket. However, some bonds may offer tax benefits. Understanding these implications helps optimise returns when considering how to invest in government bonds.

Are there any risks associated with investing in government bonds in India?

Answer Field

Although government bonds are low-risk, they are subject to interest rate fluctuations and inflation, which can impact returns. Understanding these risks is essential when considering how to invest in government bonds effectively.

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