Share Market Today | GIFT Nifty Flat, Nasdaq Dips Over 1%

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Synopsis:

Today’s latest market updates: MSCI Index rejig to bring $2B in India, GIFT Nifty archives record turnover of $88.10B in May, IDFC First plans to raise ₹3,200 Cr, Aditya Birla Sun AMC promoters to sell up to 0.32% stake, plus other global market news.

Latest Market News

  1. MSCI Index rebalancing on May 31 is expected to bring $2 billion into Indian equities.
  2. GIFT Nifty achieved a record monthly turnover of $88.10 billion in May 2024.
  3. IDFC First Bank plans to raise ₹3,200 crore from LIC, SBI General, and others.
  4. Jio Financial Services launched the 'JioFinance' app in beta, integrating digital banking, UPI, bill payments, insurance advisory, and account management.
  5. Aditya Birla Sun AMC Promoters will sell up to a 0.32% stake from May 31 to October 10 to meet MPS norms.
  6. The US Q1 GDP growth rate is estimated at 1.3%, lower than the expected 1.6%.
  7. US initial jobless claims for the week ending May 25 increased to 2.19 lakh from 2.16 lakh the previous week.
  8. FIIs sold a net ₹3,050.15 crore in equities yesterday, while DIIs bought a net ₹3,432.92 crore.

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

US Share Market News

  • 1. Performance Overview:

    On Thursday, the US stocks took a dip, especially the Nasdaq which dropped over 1%, mainly due to tech shares sliding following a less-than-expected forecast from Salesforce.

    2. Economic Indicators:

  • The US economy grew by 1.3% annually from January to March, slightly lower than the initial estimate of 1.6%. This adjustment came as consumer spending and a key measure of inflation saw minor decreases.

  • Investors also analysed data that indicated slower-than-anticipated economic growth in Q1.

  • Another report revealed a higher-than-anticipated increase in weekly jobless claims.

  • Meanwhile, investors await April's personal consumption expenditure report for further insights.

  • 3. Sector-Specific Movements:

  • The S&P 500 dropped by 0.60% to 5,235.48, the Nasdaq lost 1.08% at 16,737.08, and the Dow Jones fell 0.86% to 38,111.48.

  • US stocks are poised for a robust finish this month, with major indices eyeing their sixth positive month in seven. The Dow is up 0.8%, the S&P 500 by 4%, and the Nasdaq Composite, with a gain of about 7%, is set for its best month since November 2023, when it surged 10.70%.

  • Other Asset Classes

    1. Treasury Yields:

    On Thursday, the US Treasury yields fell as investors awaited key economic data and evaluated the economy. The 10-year Treasury yield dropped over 7 basis points to 4.55%, dipping below the 4.6% level reached on Wednesday for the first time in a month.

    2. Currency:

    The dollar fell after revised data revealed slower-than-expected GDP growth in the first quarter. The US dollar index reached 105.18 overnight, the highest since May 14, but later dropped 0.37% to 104.74.

    3. Commodities:

  • US crude oil dropped over 1%, heading for its worst month of the year amid weak gasoline demand at the start of the summer driving season. It's down 4.9% in May, the biggest decline since December. Brent crude has fallen 6.8% this month, marking its first negative month in five.

  • Gold prices edged up on Thursday as the dollar and Treasury yields slipped, following US economic data that boosted hopes for a Fed rate cut this year. Spot gold rose 0.13% to $2,341.89 per ounce, while US gold futures closed 0.1% higher at $2,366.50.

  • Asian Markets

    1. General Trends:

    Asia-Pacific markets opened higher in Friday’s morning session as investors analysed the recent economic data from major countries across the region.

    2. Specific Index Performance:

  • Japan’s Nikkei 225 rose 0.23%, and the Topix index increased by nearly 0.7%.

  • South Korea’s Kospi led gains in Asia, climbing 1.07%, while the smaller-cap Kosdaq added 0.73%.

  • India Market Outlook

    1. GIFT Nifty Projection:

    GIFT Nifty indicates a flat to positive opening for the Indian market. After a 700-point drop over the last four sessions, Nifty appears oversold, suggesting a potential pullback today. If the Nifty spot holds above last week's low of 22,400, it could rise to 22,650-22,700.

    2. Nifty Short-Term Outlook:

  • Benchmark indices extended their decline for the fourth consecutive session on Thursday, influenced by weak global cues. The Nifty fell by 0.95% to 22,488, while the Bank Nifty rebounded slightly, gaining 0.4% to 48,682.

  • The broader market saw significant declines, with the Nifty Midcap and small-cap indices down by 1.3% and 1.6%, respectively.

  • The market's corrective phase, marked by four consecutive bearish candles, is expected to persist with high volatility due to the upcoming General Election.

  • However, if the Nifty holds above the 22,000-21,900 range, the short-term trend remains positive, potentially rising to 23,300-23,500 in the coming weeks.

  • 3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22590, followed by 22670 levels. Conversely, downside support is located at 22410, followed by 22330.

  • Bank Nifty: Intraday resistance is positioned at 48990, followed by 49250, while downside support is found at 48480, followed by 48300.

  • Fin Nifty: Intraday resistance is positioned at 21690, followed by 21800, while downside support is found at 21530, followed by 21450.

  • Derivative Market Analysis

    1. Nifty:

  • The highest call OI addition for Nifty is at the 23,000 level, indicating it as a key resistance, with 22,500 as an immediate resistance. If Nifty sustains above 22,500, it may move towards 23,000.

  • Major put OI additions are at 22,000 and 22,500, suggesting that if the price stays below 22,500, it could decline towards 22,000. The 22,500 level, with significant call-and-put OI accumulation, is critical for today's movement.

  • The immediate range for Nifty is between 22,000 and 23,000, and the put-call ratio has risen by 0.33 to 1.12.

  • 2. Bank Nifty:

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  •  
    • On Thursday, the US stocks took a dip, especially the Nasdaq which dropped over 1%, mainly due to tech shares sliding following a less-than-expected forecast from Salesforce.
    • The US economy grew by 1.3% annually from January to March, slightly lower than the initial estimate of 1.6%. This adjustment came as consumer spending and a key measure of inflation saw minor decreases.
    • Investors also analysed data that indicated slower-than-anticipated economic growth in Q1.
    • Another report revealed a higher-than-anticipated increase in weekly jobless claims.
    • Meanwhile, investors await April's personal consumption expenditure report for further insights.
    • The S&P 500 dropped by 0.60% to 5,235.48, the Nasdaq lost 1.08% at 16,737.08, and the Dow Jones fell 0.86% to 38,111.48.
    • US stocks are poised for a robust finish this month, with major indices eyeing their sixth positive month in seven. The Dow is up 0.8%, the S&P 500 by 4%, and the Nasdaq Composite, with a gain of about 7%, is set for its best month since November 2023, when it surged 10.70%.
    • On Thursday, the US Treasury yields fell as investors awaited key economic data and evaluated the economy. The 10-year Treasury yield dropped over 7 basis points to 4.55%, dipping below the 4.6% level reached on Wednesday for the first time in a month.
    • The dollar fell after revised data revealed slower-than-expected GDP growth in the first quarter. The US dollar index reached 105.18 overnight, the highest since May 14, but later dropped 0.37% to 104.74.
    • US crude oil dropped over 1%, heading for its worst month of the year amid weak gasoline demand at the start of the summer driving season. It's down 4.9% in May, the biggest decline since December. Brent crude has fallen 6.8% this month, marking its first negative month in five.
    • Gold prices edged up on Thursday as the dollar and Treasury yields slipped, following US economic data that boosted hopes for a Fed rate cut this year. Spot gold rose 0.13% to $2,341.89 per ounce, while US gold futures closed 0.1% higher at $2,366.50.
    • Asia-Pacific markets opened higher in Friday’s morning session as investors analysed the recent economic data from major countries across the region.
    • Japan’s Nikkei 225 rose 0.23%, and the Topix index increased by nearly 0.7%.
    • South Korea’s Kospi led gains in Asia, climbing 1.07%, while the smaller-cap Kosdaq added 0.73%.
    • GIFT Nifty indicates a flat to positive opening for the Indian market. After a 700-point drop over the last four sessions, Nifty appears oversold, suggesting a potential pullback today. If the Nifty spot holds above last week's low of 22,400, it could rise to 22,650-22,700.
    • Benchmark indices extended their decline for the fourth consecutive session on Thursday, influenced by weak global cues. The Nifty fell by 0.95% to 22,488, while the Bank Nifty rebounded slightly, gaining 0.4% to 48,682.
    • The broader market saw significant declines, with the Nifty Midcap and small-cap indices down by 1.3% and 1.6%, respectively.
    • The market's corrective phase, marked by four consecutive bearish candles, is expected to persist with high volatility due to the upcoming General Election.
    • However, if the Nifty holds above the 22,000-21,900 range, the short-term trend remains positive, potentially rising to 23,300-23,500 in the coming weeks.
    • Nifty: Intraday resistance is situated at 22590, followed by 22670 levels. Conversely, downside support is located at 22410, followed by 22330.
    • Bank Nifty: Intraday resistance is positioned at 48990, followed by 49250, while downside support is found at 48480, followed by 48300.
    • Fin Nifty: Intraday resistance is positioned at 21690, followed by 21800, while downside support is found at 21530, followed by 21450.
    • The highest call OI addition for Nifty is at the 23,000 level, indicating it as a key resistance, with 22,500 as an immediate resistance. If Nifty sustains above 22,500, it may move towards 23,000.
    • Major put OI additions are at 22,000 and 22,500, suggesting that if the price stays below 22,500, it could decline towards 22,000. The 22,500 level, with significant call-and-put OI accumulation, is critical for today's movement.
    • The immediate range for Nifty is between 22,000 and 23,000, and the put-call ratio has risen by 0.33 to 1.12.
    • The highest call OI addition for Bank Nifty is at the 50,000 level, indicating major resistance, with immediate resistance at the 49,000 level.
    • Major put OI addition is at the 48,500 level, providing strong support. Thus, the immediate range for Bank Nifty is between 48,500 and 49,000.
    • A break outside this range could trigger a directional move. The put-call ratio has decreased by 0.05 to 0.88.

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