05/06/2024
From Advisory Desk 5th June 2024
Market Outlook: Yesterday, our market experienced a sharp downturn in response to the election results for the ruling party, which fell short of both exit polls and market expectations. Institutional investors aggressively sold in the cash segment, with over 15k crore offloaded in a single day. In the near term, volatility may continue until the government formation, and we advise traders to focus on defensive sectors like FMCG, IT. Overall, we remain positive on the market from a medium to long term perspective. Asian markets have started on a mixed note, while the GIFT Nifty is indicating a positive opening. Crude oil prices fell nearly 10% in 5 days over fears of weakening global demand. US equities closed slightly higher on Tuesday following softer-than-expected labor market data that reaffirmed expectations of an interest rate cut by the Fed. Today, being the Banknifty's weekly expiry, we expect the range to be 45500/46000-47777/48500.
Actionable: Buy Dabur, TCS.
Global market:
DOW: +140
GIFT NIFTY : +123 (Yesterday’s Close 21947)
NIFTY 50 : 21884
SENSEX : 72079
Institution:
FII: - 12436 Cr
DII: - 3318 Cr
BSE:
Advances: 418 / Declines: 3427
Currency:
Dollar: $ 83.53
Dollar Index: 104.15
Commodity:
Gold: $ 2332 per ounce
Crude: $ 77.5 per barrel
Bonds:
10 year US bond rate: 4.34
10 year Indian Bond rate: 7.03
Derivative:
PCR: 0.52
VIX: 26.75
Updates:
Hindalco Industries: Novelis Inc, the US subsidiary of Hindalco Industries, has delayed its initial public offering citing market conditions. The company will reassess the timing of the offering in the future, according to Novelis. Initially aiming to raise between $810 million and $945 million, the IPO price band was set at $18 to $21 per share, as announced by Hindalco Industries last week.
SBI : The SBI announced that its board of directors will convene on June 11 to discuss raising long-term funds in single or multiple instalments of up to $3 billion through either a public offering or private placement of senior unsecured notes in US Dollars or other major foreign currencies during the fiscal year 2024-25.
Tata Motors: Board has approved to set up a wholly-owned subsidiary for commercial vehicles business. The company proposed the name of the new unit as TML Commercial Vehicles. The firm will be a wholly-owned subsidiary of the company.
Infosys: Infosys on Tuesday announced its collaboration with Nihon Chouzai (TSE), Japan’s dispensing pharmacy chain, in order to expand healthcare access in Japan with enhanced online medication guidance services and payment solutions.
GPT Infraproject : The company has secured a contract valued at Rs.547 crore from Rail Vikas Nigam.
Securities In Ban: ZEEL.
Derivative View: On weekly front, Maximum Call OI is at 23000 then 22500 strike while Maximum Put OI is at 21000 then 21500 strike. Option data suggests an immediate trading range in between 21500 to 22500 zones.
