Retail inflation marginally eases to 4.83% in April, but food prices continue to rise : Daily Market Update - 14 May 2024 | Globe Capital Market LTD.
Retail inflation marginally eases to 4.83% in April, but food prices continue to rise : Daily Market Update – 14 May 2024

India's headline retail inflation stayed largely unchanged at 4.83 percent in April, according to data released by the Ministry of Statistics and Programme Implementation on May 13. The Consumer Price Index (CPI) inflation in March was at a 10-month low of 4.85 percent.

Even though inflation eased to an 11-month low in April, it will be the 55th month in a row that it would be above the RBI's medium-term target of four percent. The central bank is keen to bring it down to the target on a durable basis.
Yet again, the fall in the headline retail inflation rate in April was limited by prices of food and beverages that remained elevated at 7.87 percent, edging higher than 7.68 percent a month ago.

Overview and Outlook

Global Stock Market Today

  • Barring Nasdaq, other US equity markets settled on a flat to negative note.
  • European equity markets settled on a flat to negative note.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is up by 100 points, Nifty futures likely to open around 22250 levels (as on 8:30AM).


News highlights from across the globe

  • Most markets in Asia-Pacific countries are trading with positive bias on Tuesday as market participants await US PPI data, and Federal Reserve Chair Jerome Powell’s speech.
  • Fed Chair Jerome Powell and European Central Bank’s Governing Council member Klaas Knot will speak later today. Market participants will monitor the speech for fresh clues on the U.S. central bank’s next policy move.
  • US stocks fluctuated at the start of the week, which will bring inflation data seen as key in shaping the outlook for Federal Reserve policy.


Important news updates from the domestic front

  • DLF Q4 FY24 – (Consolidated, YOY) Revenue up 46.63% at Rs 2,135 crore vs Rs 1,456 crore. Ebitda up 89.25%at Rs 754.38 crore vs Rs 399 crore. Margin up 795 bps at 35.33% vs 27.37%. Net profit up 61.4% at Rs 920 crore vs Rs 570 crore. Board approved the appointment of Ashok Kumar Tyagi as CFO in addition to position of MD. Board recommended dividend of Rs 5 per share.
  • Jindal Steel and Power Q4 FY24 – (Consolidated, YOY) Revenue down 1.5% at Rs 13,487 crore vs Rs 13692 crore Ebitda up 11.75% at Rs 2,444 crore vs Rs 2187 crore Margin up 214 bps at 18.12% vs 15.97% Net profit up 100.45% at Rs 933 crore vs Rs 466 crore Note: Exceptional loss Rs 153 crore in Q4 FY23. Approved the final dividend of Rs 2 per share.
  • Hero MotoCorp joined the ONDC network to offer parts and accessories to customers on the digital platform.
  • Vedanta will consider raising funds via the issue of equity shares via FPO, rights issue or other means on May 16. Unit Cairn Oil and Gas’s reserves and resources portfolio grew by 19% YoY to 1.4 billion barrels of oil equivalent.
  • Maruti Suzuki introduced two new variants in FRONX, priced at Rs 8.93 lakh and Rs 9.43 lakh.
  • Zomato: Arm ZPPL will voluntarily surrender the certificate of authorization issued by RBI to operate as an online payment aggregator and also withdraw the application to operate as the issuer of pre-paid payment instruments.
  • Shriram Finance: The board approved the sale of the entire stake in Shriram Housing Finance to Mango Crest & Warburg Pincus. Warburg Pincus to buy a unit for Rs 4,630 crore.
  • Rail Vikas Nigam received an order worth Rs 239 crore.
  • Coromandel International through its arm, acquired an additional 7% stake in Chennai-based drone manufacturing company Dhaksha Unmanned Systems for Rs 150 crore.


Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the downside, fell sharply to achieve its downside targets of 21800 levels during the first hour of trade. Smart and steep recovery from its 100 DEMA i.e. 21827 levels helped it to settle above 22100 levels.

Mid cap index outperformed the benchmark as it rose over 1%, whereas Small cap index underperformed the benchmark as it was down nearly 0.5%.

Performance on the sectoral front was also mix. Pharma, Realty and Metal index were at the top of the tally, gained in range 1-2%. On the other hand, Auto and PSU Bank index were at bottom of the tally, fell 1.68% & 1.23% respectively.

Technically, Nifty index has achieved its initial down targets. Going ahead, we expect this bounce back rally to continue in short term till it is trading above 21950 levels, immediate resistance is placed around 22200-22300 zones.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Finnifty and Midcap nifty futures with increase in open interest by 3.2%, 9.8% and 8.4% respectively. On the other hand, short covering was seen in Banknifty futures with decrease in open interest by 3.1%.

Majority of F&O sectors settled higher. Long buildup was observed in Capital Goods, Finance and  Pharma stocks whereas, short covering was seen in Metal, Cement and Banking stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 21000 PE followed by 21500& 22000 PE and 23000 CE closely followed by 22500 & 22300 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4499 Cr in the cash segment, bought stocks futures worth Rs 296 Cr and sold index futures worth Rs 951 Cr.  DIIs were net buyer in the cash segment to the tune of Rs 3563 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22350-22480; Supports 22080-21980

Banknifty – Resistances 48500-48800; Supports 47500-47200

Finnifty – Resistances 21480-21550; Supports 21200-21080






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