Share Market Today | Gift Nifty Negative, Nasdaq Hits 17k Mark

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Synopsis:

Today’s latest market updates: Birla Group boosts stake in Grasim from 19.10% to 23.18%, Reliance seals oil deal with Russia's Rosneft, Hindalco's US subsidiary Novelis plans 45mn shares IPO, ₹500 crore stake sale in PNB Housing Finance, plus other global market news.

Latest Market News

  1. Birla Group Holdings increased its stake in Grasim Industries from 19.10% to 23.18%.
  2. Reliance Industries signed a one-year deal with Russia's Rosneft to buy at least 3 million barrels of oil monthly in rubles.
  3. Novelis, a subsidiary of Hindalco, is set to launch a US IPO, offering 45 million shares at $18-21 each.
  4. PNB Housing Finance is set for ₹500 Cr stake sale, two shareholders have been offered a 2.68% stake (6.96 million shares) at ₹717 per share.
  5. FIIs bought ₹65.57 crore and DIIs bought ₹3,231.67 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 Tuesday, the Nasdaq Composite hit a new high, backed by Nvidia's rise, amidst an otherwise uneventful trading session.

  1. Economic Indicators:

Traders are increasingly leaning towards no rate cut in September. According to the CME Fedwatch tool, there's a 50.7% chance the central bank will maintain rates and a 43.6% chance of a 25 basis point cut.

The data arrived before Friday's release of the PCE price index data, anticipated to reveal a slight decrease in inflation, yet it's projected to stay significantly higher than the Fed's 2% annual target.

The economic calendar also highlights revised first-quarter economic growth data on Thursday.

  1. Sector-Specific Movements:

The Nasdaq rose 0.59% to reach a record high of 17,019.88, powered by Nvidia's 7% surge. Meanwhile, the S&P 500 edged up 0.02% to 5,306.04, and the Dow Jones Industrial Average fell 0.55%, closing at 38,852.86, down 216.73 points.

Other Asset Classes

  1. Treasury Yields:

On Tuesday, treasury yields rose due to a disappointing auction of the five-year note and anticipation of new inflation data. The 10-year note yield climbed nearly 7 basis points to 4.542%, while the 2-year Treasury yield fell over 2 basis points to 4.974%.

  1. Currency:

The dollar index held steady, closing unchanged after bouncing back from earlier losses. This came as benchmark US Treasury yields surged to a four-week high following lacklustre auctions. The index remained at 104.60, having briefly dipped to 104.33 earlier.

  1. Commodities:

US crude oil surged by almost 3% following last week's dip, with attention now turning to a crucial OPEC+ virtual meeting to be held on Sunday. The meeting shall review its production policy. Some members are voluntarily withholding 2.2 million barrels per day to support prices.

Gold prices rose on Tuesday, boosted by a weaker dollar. Investors are awaiting US inflation data later this week for clues on potential interest rate cuts. Spot gold climbed 0.38% to $2,359.56 per ounce, while US gold futures settled 0.9% higher at $2,356.50.

Asian Markets

  1. General Trends:

Asia-Pacific markets were mixed in Wednesday’s morning session, while the Nasdaq Composite reached a record high, surpassing 17,000 for the first time.

  1. Specific Index Performance:

Japan's Nikkei 225 opened up 0.18%, and the Topix was slightly positive.

South Korea's Kospi dropped 0.26%, and the Kosdaq declined 0.44%.

India Market Outlook

  1. GIFT Nifty Projection:

Gift Nifty indicates a negative opening for the Indian market. However, buying demand is expected around the 22800-22750 breakout area from last week. The Nifty spot is likely to consolidate within the 22750-22950 range.

  1. Nifty Short-Term Outlook:

For the second consecutive day, benchmark indices traded within a range with a corrective bias due to mixed global cues. The Nifty closed marginally lower by 0.2% at 22,888, while the Bank Nifty ended 0.3% down at 49,142.

A bear candle pattern indicated ongoing consolidation above the recent breakout range of 22,800-21,700.

Anticipating continued volatility ahead of the general election results and Q4 earnings season, the index is expected to form a base around 22,700-22,800 before resuming its upward trend towards the 23,300 target.

Current dips are viewed as buying opportunities.

  1. Intraday Levels:

Nifty: Intraday resistance is situated at 22930, followed by 22990 levels. Conversely, downside support is located at 22800, followed by 22740.

Bank Nifty: Intraday resistance is positioned at 49290, followed by 49530, while downside support is found at 48900, followed by 48740.

Fin Nifty: Intraday resistance is positioned at 22060, followed by 22150, while downside support is found at 21870, followed by 21770.

Derivative Market Analysis

  1. Nifty:

The highest call OI remains at the 23,500 level, with immediate resistance at 23,000 due to significant call writing, indicating multiple resistances above this level. Major put OI additions are at 22,500 and 23,000, suggesting a potential decline to 22,500 if prices stay below 23,000.

Option chain analysis shows put writers unwinding above 23,000, while aggressive call writing makes surpassing this level challenging. The Nifty is expected to trade between 22,500 and 23,000, with a potential directional move if it breaks out of this range.

The put-call ratio has decreased to 0.94, and a 0.7% increase in open interest coupled with a 0.2% price fall indicates a short buildup.

  1. Bank Nifty:

  The Bank Nifty is seeing significant put OI additions at the 48,000 and 49,000 levels, indicating strong support, while the highest call OI additions are at the 50,000 and 49,500 levels, with potential for short covering if prices exceed 49,500.

  Call writers are active above 49,500 and put writers below 49,000, suggesting a consolidation range between 49,000 and 49,500. A break outside this range could lead to a further directional move.

  The Bank Nifty also saw a 4.5% increase in open interest and a 0.2% price decrease, indicating a short buildup.

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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