Share Market Today | Gift Nifty Flat Amid Mixed Global Cues

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Synopsis:

Today’s latest market updates include Timken Singapore’s 6.6% stake sale in Timken India for ₹1,775 Cr, IWEL’s 5% stake sell in Inox Wind, LIC’s ₹6 dividend announcement for FY 23-24, Keystone Realtor’s ₹800 Cr fundraising via QIP, plus other global market news.

Latest Market News

  1. LIC sets a record with a ₹6 per share dividend for FY 23-24, giving the government ₹3,662 crore as the majority shareholder.
  2. Keystone Realtors raises ₹800 crore through QIP, issuing shares to Quant MF and ADIA.
  3. Timken Singapore plans to sell up to 6.6% equity in Timken for $213 million (₹1,775 crore) at a floor price of ₹3,550/share.
  4. IWEL, the promoter of InoxWind, is likely to sell up to a 5% stake.
  5. Karnataka HC puts limits on service charges for app-based auto rides to 5%.
  6. IndiGo is planning to launch business class on major metro routes.
  7. FIIs net sold ₹541.22 crore while DIIs net bought ₹922.60 crore in equities yesterday.

Additional Read: Share Market News

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

US Share Market News

  1. Performance Overview:

On Monday, the US markets were closed for Memorial Day. Stock futures for all three major indexes are trading steady to slightly up.

  1. Economic Indicators:

The CME Fedwatch tool suggests a 45% chance the Fed will lower rates from the current 5.25% to 5.5% in September.

PCE price index, the Fed's key inflation measure, will be released this Friday. It's anticipated to reflect a slowdown in spending, following Fed warnings that persistent inflation may hinder rate cuts this year.

This week, we'll see a bunch of important economic updates, including revised GDP data alongside PCE figures.

Other Asset Classes

  1. Treasury Yields:

On Tuesday, the US Treasury yields remained steady as investors considered the latest economic data. The 10-year Treasury yield dipped slightly by less than 1 basis point to 4.467%.

  1. Currency:

The dollar had a solid beginning for the week as investors watched out for inflation data from the US, Europe, and Japan to gauge global interest rates. It closed at 104.40 on the dollar index.

  1. Commodities:

Oil prices remained steady in early Asian trading as markets awaited the June 2 OPEC+ meeting, where producers are expected to discuss maintaining output cuts for the rest of the year. The Brent crude July contract edged up 11 cents to $82.23 a barrel.

Gold prices rose on Monday, recovering from a two-week low, as traders weighed the diminishing chances of US interest rate cuts before a key inflation report this week. Spot gold increased by 0.5% to $2,346.31 per ounce.

Asian Markets

  1. General Trends:

Asia-Pacific markets were steady on Tuesday as investors considered comments from European Central Bank officials suggesting potential rate cuts for the world’s largest economic bloc.

  1. Specific Index Performance:

Japan’s Nikkei 225 and the broader Topix were both trading near the flatline.

South Korea’s Kospi edged up slightly, while the small-cap Kosdaq rose by 0.42%.

India Market Outlook

  1. GIFT Nifty Projection:

Gift Nifty suggests a flat opening amid mixed global signals. After a flat start, the Nifty spot is expected to continue yesterday's consolidation within the broad range of 22,820-23,050.

  1. Nifty Short-Term Outlook:

The benchmark indices experienced high volatility and closed slightly lower due to mixed global cues. The Nifty formed a bear candle, indicating consolidation above its recent breakout range (22800-21700).

The Nifty started positively, reaching a new all-time high of 23110 mid-session, but profit booking led to a marginal close at 22932, down by 0.1%. In contrast, Bank Nifty outperformed, closing 0.63% higher at 49281.

Despite short-term volatility expected ahead of the general election and Q4 earnings season, the index is anticipated to trend positively towards 23300.

Key support is seen at 22400-22500, with dips being buying opportunities. The swift retracement of the recent consolidation signals a robust price structure favouring the ongoing uptrend.

  1. Intraday Levels:

Nifty: Intraday resistance is situated at 23000, followed by 23060 levels. Conversely, downside support is located at 22870, followed by 22800.

Bank Nifty: Intraday resistance is positioned at 49500, followed by 49690, while downside support is found at 49050, followed by 48810.

Fin Nifty: Intraday resistance is positioned at 22060, followed by 22150, while downside support is found at 21870, followed by 21750.

Derivative Market Analysis

  1. Nifty:

The Nifty's option chain analysis shows significant call OI additions at the 23,500 and 23,000 levels, indicating resistance zones, while major put OI additions at the 23,000 level suggest the potential for a corrective bias if the price stays below this mark.

The 23,000 level is critical, with both call and put OI accumulations marking it as a decisive point. The current trading range is 22,500 to 23,000, with a break in either direction likely prompting a strong move.

Additionally, the put-call ratio has dropped to 1, and Nifty experienced a 2.4% fall in open interest alongside a 0.2% price decline, pointing to long unwinding.

  1. Bank Nifty:

The Bank Nifty shows strong support at 48,000 and 49,000 levels, with significant put OI additions at these points. On the upside, the highest call OI addition is at 50,000, with immediate resistance at 49,500.

If the price exceeds and sustains above 49,500, short covering is likely. Option chain analysis indicates put writers are active below 49,000 and call writers above 49,500, suggesting potential consolidation.

The immediate range for Bank Nifty is 49,000 to 49,500, with a break beyond this range potentially triggering a directional move. A 9.1% increase in open interest and a 0.4% price rise suggest short covering.

  1. Fin Nifty:

The option chain analysis for Fin Nifty indicates that significant call option interest at the 22,500 and 22,200 levels will act as resistance. Meanwhile, active put writing below the 22,000 level suggests multiple support areas.

Consequently, Fin Nifty is expected to consolidate within the 22,200 to 22,000 range.

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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