Pre-market stock update for May 10, Friday: Can strong overseas cues help the Indian market stage a relief rally today? As of 07:00 am, Gift Nifty futures quoted at 22,160, hinting at an over 100-points opening gain for the Nifty 50 index.
That apart, the market will also factor in expectations of higher growth in Industrial and manufacturing production for the month of March. The data will be released after the market hours today.
On the earnings front, Aarti Industries, ABB, Bajaj Hindusthan Sugar, Bank of Baroda, Bank of India, Cholamandalam Financial Holdings, Cipla, Dilip Buildcon, Eicher Motors, Excel Realty, Fine Organic Industries, Finolex Industries, GE Shipping, Hester Biosciences, Jupiter Life Line Hospitals, Kalyan Jewellers, Dr Lal Path Labs, Neuland Laboratories, Novartis India, Nuvama Wealth Management, Polycab India, Piramal Pharma, Punjab & Sind Bank, Sapphire Foods, Sharda Cropchem, Subex, Sundaram Clayton, Tata Motors, TCI Express, Thermax, Union Bank of India, Venkys India and Waaree Revewable Technologies are some of the notable companies scheduled to announce March quarter results on Friday.
Among others, shares of BPCL and HPCL will be in focus as the oil marketing companies announced Q4 results, and declared bonus share issue in the ratio of 1:1 and 1:2, respectively.
Should you be a buyer or seller today? Here’s what technical experts recommend:
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates says that technically, the Nifty has broken the rising channel support, which was placed near 22,100 levels. Thus, 22,100 will act as the immediate hurdle for the index, followed by 22,400, where the 21-Days Exponential Moving Average (DEMA) is placed.
Last month, the index has taken support around 21,780 levels, and the 100-DEMA is placed near 21,817. Thus, on the downside, 21,780-21,820 will act as the next key support for the index. If the index stays below 21,750, then weakness could extend further, the analyst said in a note.
Rupak De, Senior Technical Analyst at LKP Securities said that on the day of mayhem, the Nifty kept breaking the supports as buyers did not buy the dips. The trend looks extremely weak with a possibility of a further fall in the near term. On the higher end, immediate resistance is visible at 22,200; the market might remain sell on rise until it stays below 22,200.
Om Mehra, Technical Analyst at SAMCO Securities highlights that the negative divergence in RSI now exerts a notable impact on price action, adding to the bearish sentiment. Nifty’s breach of the crucial 22,000 support level has opened the door to further declines. The next significant level is 21,777, representing the previous swing low. If this level is violated, it could trigger a more intense sell-off in the market.
Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities adds that the India VIX rose for the 11th consecutive day and closed at 18.20, up 6.56 per cent. The VIX made a high of 19.17 earlier in the day and gave discomfort to the bulls. Both Nifty & Bank Nifty closed below their 50 DEMA level of 22,232 and 47,712 respectively
The put writers (Bulls) still have sizeable positions at the 22,000 Strike and Nifty is likely to fall further down if put writers exit from this strike, the analyst added.
Global markets
Overnight, in the US, Dow Jones ended higher for the seventh straight trading session, up 0.9 per cent, after higher-than-expected rise in the US weekly jobless claims buoyed hopes of an interest rate cut. The focus will now be on the US Producer Price Index (PPI) and Consumer Price Index (CPI) numbers to be released next week. Meanwhile, the S&P 500 gained 0.5 per cent and Nasdaq added 0.3 per cent.
The US 10-year bond yield fell 2.4 basis points to 4.459 per cent as hopes of a rate cut in September rose.
Earlier in the day in Europe, FTSE scaled record high after Bank of England (BOE) policy makers hinted that there could be more by way of interest rate cuts than the market expects. FTSE ended 0.3 per cent higher. DAX jumped 1 per cent, and CAC was up 0.7 per cent.
This morning in the Asia-Pacific region, Nikkei rallied over 1.5 per cent, and Kospi surged 1 per cent. The Australian benchmark indices were up 0.4 per cent.
Among key commodities, Gold futures jumped back to $2,355 levels, while Brent Crude Oil rose over the $84-mark.
Given the sharp rally in Gold prices to record high levels, Gold ETFs for the first time in 13 months, witnessed net outflows in the month of April 2024.
Melvyn Santarita, Analyst, Morningstar Investment Research India said that Gold has done fairly well over the last year but dwarfs in comparison to how equities have fared. Given this backdrop, flows in Gold ETF category has been somewhat patchy relative to equity asset class. That said, investors could have opted to book some profits in this segment which has resulted in the asset class witnessing net outflows despite the rise in prices.
First Published: May 10 2024 | 7:12 AM IST