Exit polls set to ignite market, GIFT Nifty trading up by 800 points : Daily Market Update -3 June 2024 | Globe Capital Market LTD.
Exit polls set to ignite market, GIFT Nifty trading up by 800 points : Daily Market Update -3 June 2024

The exit polls predicting a landslide victory for the BJP are likely to set the markets ablaze with excitement. Markets are buzzing with anticipation, expecting a surge driven by short-covering and euphoria going by how various constituency of traders are positioned in the derivatives market. The Gifty Nifty was showing a 800 point rise.

Overview and Outlook

Global Stock Market Today

  • Barring NASDAQ, other US equity markets settled higher.
  • European equity markets settled on a flat to positive note.
  • Asian equity markets are trading higher.
  • GIFT Nifty is up by 800 points, Nifty futures likely to open around 23500 levels (as on 8:20AM).


News highlights from across the globe

  • Stocks in the Asia-Pacific region are trading higher on Monday, tracking last week’s positive close and renewed rate-cut hopes by the US Federal Reserve.
  • A renewed bout of volatility gripped US stocks in the final stretch of Friday session, with most of them ending in the final 20 minutes of trading.
  • Brent crude was trading 0.33% lower at $81.38 a barrel.


Important news updates from the domestic front

  • Tata Motors – Total domestic sales rose 2% year-on-year to 75,173 units in May 2024, as against 73,448 units in the year-ago period, according to an exchange filing on Saturday. Total sales at 76,766 units vs 74,973 units, up 2% YoY.
  • Maruti Suzuki India Ltd – Total sales fell in May 2024, due to a slump in exports, according to an exchange filing on Saturday. Total sales fell 2% YoY to 1.74 lakh units vs 1.78 lakh units. Domestic sales up 4% YoY to 1.57 lakh units vs 1.51 lakh units. ⁠Exports down 34% YoY to 17,367 units vs 26,477 units.
  • Mahindra & Mahindra Ltd.’s overall auto sales in May 2024 stood at 71,682 vehicles, a growth of 17%, including exports. Domestic tractor sales up 6% YoY at 35,237 units. Total tractor sales rose 9% YoY at 37,109 units. Total exports up 2% YoY to 2,671 units. Domestic CV sales up 1% YoY at 19,826 units.
  • Canara Bank is to dilute a 14.5% stake in the arm of Canara HSBC Life through an IPO.
  • Aurobindo Pharma’s arm executed a master service pact with Merck Sharpe and will invest Rs 1,000 crore for the manufacturing facility.
  • REC approved raising up to Rs 1.45 lakh crore through bonds and appointed Harsh Baweja as CFO.
  • Adani Ports and Special Economic Zone’s arm has signed a 30-year concession pact with the Tanzania Ports Authority for container terminals.
  • Wipro has expanded its retail media offering by partnering with Cisco and AT&T.
  • NTPC commissioned the second and last part capacity of 33 MW out of the 90 MW Anta Solar PV Project in Rajasthan. The company’s total capacity on a standalone and group basis now stands at 59,168 MW and 76,048 MW, respectively.
  • Angel One arm incorporated a wholly owned subsidiary for the distribution of financial products and services.


Nifty Overview & Outlook

The Nifty benchmark index experienced significant volatility on the final trading day of May 2024. Although it began positively, it encountered intraday swings before ultimately closing flat to positive. On the contrary, Bank Nifty also saw volatility but sustained its momentum, surpassing the benchmark with a 0.6% gain.

On the broader market front, both Midcap and Smallcap indices slightly underperfomed, with Midcap ending flat and Smallcap declining by 0.2%.

Sector-wise performance revealed Nifty Realty as the top performer, surging by 2.3%. Nifty Metal rebounded from its previous losses, claiming the second spot with a 1.9% rise. Across the BFSI sector, all indices closed positively. However, Nifty Media and Nifty IT dragged down, each witnessing a decline of nearly 1.3%.

Considering the daily timeframe, Nifty concluded Friday’s session consolidating within the support range of 22460-22430, as previously noted. Thereby, our outlook maintains 22310 as the subsequent support level once this zone is breached. Conversely, if there’s a rebound, we anticipate resistance at 22680 and 22765 following a breach above 22580, as attempted during the session.


Derivatives Overview & Outlook

Yesterday, Banknifty, Finnifty and Midcap nifty futures rose on short covering as all three major indices shed around 6.5%, 10.6% and 4.5% of open interest respectively. On the other hand, long buildup was seen in Nifty futures with increase in open interest by 8.3%.

On the sectoral front, long buildup was seen among Cement, Metal and Telecom stocks whereas some short buildup was seen in Automobile and FMCG stocks and no meaningful activity was seen rest of sectors on price as well as on open interest front.

On options front, call writing was seen in multiple strikes and maximum positions are at 23000 CE closely followed by 23500 CE and 22000 PE followed by 22500 PE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 989 Cr in the cash segment, sold index futures worth Rs 6132 Cr and bought stocks futures worth Rs 11,295 Cr. DIIs were net buyer in the cash segment to the tune of Rs 14,936 Cr during the week.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22800-22880; Supports 22600-22550

Banknifty – Resistances 49500-49700; Supports 49100-49000

Finnifty – Resistances 22000-22080; Supports 21800-21720


F&O Securities in Ban Today – NIL


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