On a promising Monday morning, Indian benchmark indices, Sensex and Nifty, commenced trading with a positive momentum. The Sensex surpassed 80,800, while the Nifty crossed the 24,400 mark. Many Asian stock markets, such as Japan’s Nikkei 225 and Hong Kong’s Hang Seng, remained closed in observance of Vesak Day, a significant holiday honoring the life and teachings of Gautama Buddha.
U.S. Market Influence
Following a robust performance on Friday, U.S. stock markets displayed resilience, absorbing nonfarm payroll data that alleviated recession concerns. The U.S. indices closed with gains ranging between 1.3% and 1.5%. However, on Monday morning, U.S. futures presented a different picture, trending downward.
- Dow Jones futures dipped by 0.5%, trading at 41,111.
- The S&P 500 marked its longest winning streak in over twenty years, surging 1.47% to finish at 5,686.68.
Oil Prices Decline
Amid OPEC+’s plans to ramp up oil production, crude oil prices fell below the $60 per barrel threshold. On Monday morning, Brent crude futures decreased by $2.04, or 3.33%, landing at $59.25, while West Texas Intermediate (WTI) crude slipped to $56.19, down $2.10 or 3.60%.
Market Opening Highlights
The trading session opened positively:
- Nifty 50 jumped 0.46% to 24,458.
- BSE Sensex rose 0.44%, or 353 points, to reach 80,855.51.
- The Nifty Midcap 100 increased by 0.75%, climbing to 54,105.
Market Insights
Akshay Chinchalkar, Head of Research at Axis Securities, commented on the market’s recent movements, stating, “The Nifty’s early gains on Friday did not hold, leading to a flat close. The market’s direction in the near term hinges on whether it can break above Friday’s highs or lows. Key support levels are between 24,050-24,200, while resistance lies between 24,700 and 24,872.”
Precious Metals Performance
Gold and silver experienced significant volatility last week, leading to a drop to three-week lows. The rebound of the U.S. dollar and renewed optimism surrounding U.S.-China trade talks contributed to the decline.
- Gold is facing support at $3,235-3,210 and resistance at $3,282-3,298.
- Silver has support levels at $31.80-31.60 and resistance at $32.40-32.65.
Weekly Market Outlook
As the week begins, market sentiments appear optimistic, bolstered by strong U.S. jobs reports and foreign institutional investors (FIIs) buying over ₹40,000 crore in the past twelve sessions. Prashanth Tapse, Senior VP of Research at Mehta Equities, noted that bulls are eyeing a target of 24,858 for the Nifty. Key stocks to watch include DLF, Apollo Tyres, Sun Pharma, and Godrej Properties.
Earnings Reports to Watch
A slew of companies are set to release their financial results today, including:
- Mahindra & Mahindra
- Coforge
- Indian Hotels Company
- Bombay Dyeing & Manufacturing Company
Key Stocks in Focus
Investors will keep an eye on the following stocks today:
- State Bank of India
- Adani Enterprises
- Gensol Engineering
- Tata Consultancy Services
FII Activity
Recent data indicates that foreign institutional investors were net buyers of shares worth ₹2,769.81 crore, while domestic institutional investors sold shares worth ₹3,290.49 crore on May 2, 2024.
Conclusion
With the market opening on a positive note, traders and investors are looking ahead to what the week will bring, especially with the upcoming earnings reports and geopolitical developments. The focus remains on navigating market trends amid fluctuating global influences.
