Share Market Update | April 29, 2024

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Synopsis:

Explore the latest market updates including Ircon International's ₹1,198 crore order, NBCC's subsidiary approval in Dubai, IREDA's Navratna Status, Apollo HealthCo’s ₹2,475 crore stake sale to Advent International, RBI's new debt investment limits for FPIs, 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. Ircon International secures ₹1,198.09 crore order from East Coast Railway.
  2. NBCC gets in-principle approval to form a wholly owned subsidiary in Dubai.
  3. IREDA was awarded 'Navratna Status' by the Department of Public Enterprises.
  4. Apollo Hospitals secured ₹2,475 crore investment from Advent International in Apollo HealthCo for a 12.1% stake.
  5. RBI sets investment limits in debt by FPIs for FY25 and maintains the FPI gilt investment limit at 6%.
  6. ForexData shows that the Total reserves dropped by $2.8 billion to $640.3 billion, and foreign currency assets dropped by $3.8 billion to $560.9 bn in the week ended April 19.
  7. FIIs net sold equities worth ₹3,408.88 crore, while DIIs net bought ₹4,356.83 crore on Friday.

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

US Share Market News

1. Performance Overview:

  • Last week, the S&P 500 rose 2.7%, driven by robust earnings from tech leaders like Microsoft and Alphabet, alongside a steady PCE report for March. However, Meta Platforms saw a notable drop of over 10% in its stock value due to a raised capex/opex forecast.

2. Economic Indicators:

  • Year-on-year PCE inflation hit 2.7%, slightly exceeding the anticipated 2.6%. Positive US data boosted market confidence with March's PCE Price Index up by 0.3%, meeting Reuters' forecasts.
  • Investor focus turns to the forthcoming Fed meeting for policy clues. Expectations lean towards unchanged interest rates in May, with potential cuts postponed to September or later due to ongoing inflation and strong consumer spending.

3. Sector-Specific Movements:

  • On Friday, the Dow Jones Industrial Average climbed 0.40% to 38,239.66, the S&P 500 surged 1.02% to 5,099.96, and the Nasdaq Composite soared 2.03% to 15,927.90.

4. Corporate Earnings:

  • Major companies are expected to report their earnings this week, keeping the momentum of the earnings season going. After a calm Monday, Amazon.com Inc. and Coca-Cola Co. are slated to announce their earnings on Tuesday.

Other Asset Classes

1. Treasury Yields:

  • The longer-term US Treasury yields dipped as March inflation matched economists' forecasts. The benchmark 10-year U.S. Treasury note yield dropped 4.3 basis points to 4.663%.

2. Currency:

  • The U.S. dollar dipped slightly in early Monday trading due to Japan's holiday, while the yen, euro, and sterling remained close to their lows from Friday's volatile session. The dollar index stands at 105.80.

3. Commodities:

  • Gold prices saw a modest rise, with spot gold increasing by 0.21% to reach $2,336.79 per ounce, while U.S. gold futures settled slightly higher, up by 0.2% at $2,347.20.
  • Oil prices dropped in early Asian trading on Monday, reversing Friday's gains due to discouraging US inflation data. Brent crude fell by 0.84% to $88.75 a barrel, and West Texas Intermediate (WTI) dropped 0.78% to $83.20 a barrel.

Asian Markets

1. General Trends:

  • Asian markets rallied on Monday ahead of the Federal Reserve meeting this week. Key data releases include China's April PMI and Japan's March industrial production and retail sales ahead of the Labor Day holiday on May 1.

2. Specific Index Performance:

  • Australia's benchmark indices surged by 0.55% today, bouncing back from Friday's downturn.
  • South Korea's Kospi climbed by 0.63%, with the smaller-cap Kosdaq notching a robust gain of 0.94%.
  • Japan's markets remained closed today due to a public holiday.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty predicts a favourable start for the Indian market despite a decrease in global equity markets. It expects the Nifty spot to open positively and then possibly stabilise within a range of 22600 to 22420.

2. Nifty Short-Term Outlook:

  • The benchmark indices saw a pullback alongside global markets, with US rate cut expectations delayed post-strong inflation data. Nifty closed up 1.23% at 22420, and Bank Nifty at 48201, while Nifty Midcap and Small Cap hit all-time highs, up 3.96% and 4.37% respectively.
  • The index showed a pullback with a high wave candle, indicating potential consolidation around 22700-22200, supported by positive bias and short-term hurdles at 22500-22600.
  • Expectations include a higher base formation after an 850-point rally over 5 sessions, with short-term support at 22000-21900 levels, as per the lower channel band since Jan 2024 and a 61.8% retracement of the recent up move.

3. Intraday Levels:

  • Nifty: The day’s resistance levels for Nifty are at 22560 and 22620, with support at 22410 and 22350.
  • Bank Nifty: The resistance levels for Bank Nifty stand at 48530 and 48700, while support is located at 48200 and 48050.
  • Fin Nifty: For Fin Nifty, the resistance levels are at 21480 and 21570, while the support is at 21340 and 21270.

Derivative Market Analysis

1. Nifty:

  • Nifty’s weekly option chain suggests a potential range of 2000 points, with the highest call OI at 23500 and put OI at 21500. Heavy call writing above 22500 indicates anticipation of Nifty staying below 22500, though sustaining above it could trigger a short covering rally.
  • Weekly PCR OI of 0.75 indicates short-term bearishness but a monthly PCR OI of 1.35 suggests long-term bullishness,  advising to view dips as potential opportunities for fresh long positions.

2. Bank Nifty:

  • Bank Nifty's synthetic future for 30 April expiry is trading at 48259.75, with a weekly option chain indicating a range of 48000-48500. Put OI is concentrated below 48000, while call writers are active above 48500.
  • A sustained move above 48500 could trigger a short covering rally, while the overall bullish setup remains intact despite potential movement towards 48000.

3. Nifty Midcap:

  • Midcap Nifty has been in a strong uptrend since April 19. Its synthetic future is trading at 10978.40 and an option chain suggesting a range of 10900-11000 with the highest call and put OI at 11200 and 10800 respectively.
  • Significant additions in OI were observed at 11000 on Friday, which can be a deciding level for potential upmove if sustained. If it breaks 10900, support could be seen at 10800 during today's expiry session.

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

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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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