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Pre-market stock update for May 09, Thursday: The NSE Nifty 50 is likely to start trade on a quiet note amid mixed cues from global markets.
At 07:00 am, Gift Nifty futures quoted at 22,396.
Stock specific action is likely to dominate proceedings on Dalal Street, equity market will react to Larsen & Toubro Q4 numbers. PSU Banks stocks and shares of oil marketing companies too will be in focus today.
SBI - India’s largest state-run bank is scheduled to report Q4 results today. Analysts believe the growth in SBI's Q4FY24 net profit will likely depend on the one-time staff cost (higher salary provision) the bank may set aside during the quarter, analysts said. READ MORE
Bank of Baroda stock too is expected to be in focus, as the Reserve Bank of India (RBI) on Wednesday allowed Bank of Baroda to onboard new customers through the 'Bob World' application, more than six months after it imposed restriction. Bank of Baroda is scheduled to report earnings on Friday.
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BPCL and HPCL too are scheduled to announce March quarter earnings today. More importantly, both the oil marketing companies board will consider a bonus share proposal in their board meeting on Thursday.
Shares of NBFCs, mainly those involved in the business of Gold loans, may witness some selling pressure after the RBI directed these firms not to lend in cash of more than Rs 20,000 for gold loans, citing the Income Tax act.
That apart, Ajmera Realty, Asian Paints, CAMS, Escorts, Indian Overseas Bank, Nitin Spinners, PNB, Rain Industries, Relaxo Footwear, Timken India and Vakrangee are few of the other prominent firms scheduled to report earnings today.
Global markets
Overnight, the US market ended on a mixed note with Dow Jones extending its rally to the sixth straight trading day. As per reports, investors were now awaiting Producer Price Index (PPI) and Consumer Price Index (CPI) for fresh update on the inflation trajectory as bets for a rate cut in September rose post last week’s jobs data.
The US 10-year bond yield rose marginally to 4.50 per cent.
Among key commodities, Gold futures eased a wee bit to $2,316 levels, while Brent Crude Oil inched higher to $84-mark. Bitcoin tumbled 2 per cent to $61,400 levels.
This morning markets in the Asia-Pacific region too exhibited a mixed trend. Japan’s Nikkei was up 0.2 per cent. Singapore, Australian and Malaysian benchmark indices quoted marginally in red.
Should you be a buyer or seller today? Here’s what technical experts recommend:
Om Mehra, technical analyst at SAMCO Securities expects Nifty to witness short-term weakness, as the NSE benchmark index trades below the 40-day EMA and 20-day EMA. The bias is likely to remain negative as long as the index remains below 22,500.
Over the past three trading sessions, the daily RSI has declined from 52 to 47, indicating a slowdown in bullish momentum. A breach of 22,220 could lead to a downward movement towards 22,100. However, the lower Bollinger Band on the daily chart, positioned around 22,070, is viewed as a strong support level for the index, Om Mehra added.
Ashwin Ramani, derivatives & technical analyst at SAMCO Securities expects the Nifty to remain range-bound basis on the Open Interest action in Nifty options.
Strong put writing is observed at the 22,200 Strike in Nifty while the 22,400 & 22,500 Strikes saw significant call writing. The call writers strengthened their positions at these strikes in Nifty. Unless and until put writers (Bulls) exit from the 22,200 Strike, Nifty is likely to trade sideways or remain rangebound. Up move is likely only if call writers (Bears) exit from the key 22,500 Strike in the Index, said Ashwin Ramani in a note.
Rajesh Bhosale, technical analyst at Angel One cautions that the going ahead, the focus shall be on how prices react around 22,150 – 22,100 levels; a breach could signal a 'Rising Channel' breakdown, potentially leading to further decline towards 22,000 and testing April lows of 21,800 in the near term.
The analyst expects a break of this support sooner or later, but adds that short-term consolidation or a relief bounce from current levels due to oversold conditions cannot be ruled out.
Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Interrmediates highlights that the Nifty found support near the 50-DEMA and formed a tiny bullish candlestick on Wednesday. However, the Nifty closed below the barrier of 34-DEMA (22,344) and 21-DEMA (22,403). As long as the index remains below 22,400, short-term weakness will persist.
Hrishikesh Yedve adds that If the Nifty can stay above 22,410, a relief rally to 22,500-22,600 cannot be ruled out. On the downside, the Nifty index will find strong support at 22,100-22,000 levels. Overall, the analyst expects the Nifty to consolidate in the 22,000-22,800 range in the near future.
Neeraj Sharma, AVP technical and derivatives research at Asit C. Mehta Investment Interrmediates expects 47,700 - 47,750 to act as a strong support zone for the Bank Nifty. If the Bank Nifty maintains this support zone, a relief rally to 48,400-48,600 would be possible.
