Commenting on the derivative markets Anand James, Chief Market Strategist,Geojit Financial Services said Nifty weekly contract has highest open interest at 23000 for Calls and 22500 for Puts while monthly contracts have highest open interest at 23000 for Calls and 21000 for Puts. Highest new OI addition was seen at 23000 for Calls and 21800 for Puts in weekly and at 23000 for Calls and 22500 for Puts in monthly contracts. FIIs increased their future index long position holdings by 13.47%, deceased future index shorts by -3.16% and in index options by 23.84% increase in Call longs, 5.10% increase in Call short, 38.84% increase in Put longs and 15.42% increase in Put shorts. 

Commenting on the Dollar Rupee outlook Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas said Indian Rupee gained by 0.07% today on positive domestic markets and a decline in crude oil prices. However, mixed to positive US Dollar and FII outflows capped sharp gains. US Dollar rose on somewhat hawkish Fedspeak. Most Fed officials warned of cutting interest rates too early and need more data to cut rates.

Choudhary also added We expect Rupee to trade with a slight negative bias as the US Dollar may recover from lower levels if FOMC meeting minutes are hawkish. FII outflows may also weigh on the Rupee. However, positive tone in the domestic markets and weakness in crude oil prices may support the Rupee at lower levels. Investors may remain cautious ahead of FOMC minutes today and PMI data from US this week. USDINR spot price is expected to trade in a range of Rs 83 to Rs 83.55.

In terms of stock performance, Hitachi Energy shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 31.50% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 127.58%, indicating a strong upward trend.

Year-to-date, Hitachi Energy shares have surged by 103%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 171.41% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.

Morgan Stanley has issued an ‘Equal-Weight’ call on BHEL, setting a target price of Rs 220. In its report, Morgan Stanley highlighted that BHEL’s Q4 earnings fell short of expectations. 

Additionally, the company’s operating cash flow was weak, primarily due to an increase in net working capital. Despite these setbacks, the report noted an improvement in earnings visibility, driven by a strong influx of orders and a healthy prospect pipeline. 

However, Morgan Stanley also pointed out a significant risk factor: BHEL’s depleted vendor base. The company may need to offer attractive terms to vendors to mitigate this issue, which could impact its operational efficiency and profitability. 

Overall, while the near-term outlook shows promise with a robust order book, managing vendor relationships and operational cash flow will be crucial for sustained growth.

Go Digit’s IPO will be live in the secondary markets from May 23. The shares of the company – in which Virat Kohli and Anushka Sharma have invested – were attracting a premium of over 11% in the grey market. It is an unofficial market where shares change hands in an illegal way before listing. Market participants take cues by tracking grey market premiums. 

The insurance company opened its IPO on May 15 and closed it on May 17. Go Digit raised Rs 2,614.65 crore via a combination of fresh issues and an offer for sale price band at Rs 258 to Rs 272 per equity share. A retail investor had to bid for a minimum of 55 shares aggregating to Rs 14,960. 

Shares of Hindustan Zinc, primarily owned by Vedanta, rose another 7% on Wednesday, marking gains for the sixth consecutive day. The stock reached an intraday high of Rs 807.7 in today’s trading session and has gained in eight out of the last nine trading sessions.

The stock of Cipla rose 3.5% to an intraday high of Rs 1,492.25. The stock was the top gainer in the Nifty 50. The company’s stock hit its 52-week high of Rs 1,519 on March 11, 2024.

Nuvama has maintained a ‘Buy’ rating on BHEL, raising the target price significantly to Rs 400 from Rs 265. In its detailed report, Nuvama pointed out that while higher provisioning has negatively impacted BHEL’s profitability, the company’s project pipeline looks robust and promising. 

BHEL is considered to be in an excellent position to benefit from the anticipated thermal power wave over the next 12-24 months. Additionally, Nuvama has adjusted its earnings per share (EPS) estimates for FY25 and FY26, revising them upwards by 0.4% and 7%, respectively. 

This revision takes into account the ongoing execution of low operating profit margin (OPM) legacy orders until FY25 and a projected increase in new order executions starting from FY26, indicating a positive long-term outlook for the company.

Shares of Spicejet rose 3.7% to an intraday high of Rs 63.25 after it will ask for a refund of Rs 450 crore from Kalanithi Maran. The refund amount is out of the Rs 730 crore it has previously paid to former promoter Maran and his firm, KAL Airways, following the Delhi High Court’s order on May 17.

Hitachi Energy’s share price surged over 8% in the early trading session on Wednesday, following the company’s report of more than doubling its net profit in the Q4 results. The shares soared as much as 8.01%, reaching an intra-day high of Rs 11,700 per share on the NSE.

Co-working office services provider Awfis Space Solution’s IPO opened on May 22 for subscription. The company has kept the price band in a range of Rs 364 to 383 per equity share. It will raise Rs 598.93 crore from investors by offering them 15.6 million shares via a combination of fresh issue and offer for sale.

Courtesy: BSE

Courtesy: NSE

The shares of Bharat Heavy Electricals plunged over 8% in eary trading session on Wednesday after the company reported a 25% drop in net profit year-on-year in Q4FY24. The share price of BHEL slipped 8.20% to intra-day low of Rs 295 on NSE.

Coal India, Reliance, Hindustan Unilever, Ultra Tech Cement, and NTPC are the top gainers on NSE Nifty 50 index whereas top laggards include, Sun Pharma, Power Grid, JSW Steel, Hindalco, and Shriram Finance.

The stock of Apollo Tyres rose 5.7% after a block deal involving 2.25 crore shares, or 3.5% took place. According to media reports, Warburg Pincus’ arm, White Iris Investment, was looking to sell a 3.5% stake in the company. The Warburg Pincus arm wanted to raise Rs 1,040 crore through the stake sale.

“The market is likely to respond to the election outcome earlier than June 4th. Investors can consider buying stocks before the results. Priority can be given to largecaps which are fairly valued compared to the broader market where valuations are much higher. A possibility around the election results time is both FIIs and DIIs turning buyers lifting the largecaps and the indexes to higher levels,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The NSE Nifty 50 opened 0.08% higher at 22,548, while the BSE Sensex opened 0.05% higher at 73,989.89.

“With the overall bias maintained positive, we expect the levels near the 22400 zone to be sustained in the coming days, and a decisive breach above 22600 levels shall further strengthen the trend to expect for the next target of the 22900 level,” said Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher.

“We expect the Bank Nifty to rally towards 48320 – 48700 from a short-term perspective. The hourly momentum indicator has a negative crossover which can lead to a sideways price action however no signs of a trend reversal as of now. The trailing stoploss for the long positions should be kept at 47400,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

“Early action at GIFT Nifty suggests a volatile day as sentiment wavers after Federal Reserve officials, including Governor Christopher Waller, reiterated the need for sustained inflation decline before considering rate cuts. Anxiety prevails ahead of the FOMC minutes release. Despite record FPI outflows and rising India VIX above 21, Nifty’s outlook remains optimistic. Metal stocks, buoyed by rising copper prices due to Chinese housing market interventions, are in focus. The falling WTI crude prices at $78 per barrel add a positive note. Technically, Nifty remains bullish, aiming for all-time highs of 22,795 and beyond,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

“The FOMC minutes for the May FOMC meeting will be released today, which will be crucial for the yellow metal. US existing home sales (April) and the UK’s CPI (April) data will also be in focus. Gold is expected to range trade ahead of the FOMC minutes. Support is at $2400/$2380, whereas resistance is at $2450/$2475. Traders continue to buy the dips as their preferred strategy. The metal may reach the $2500 level in the short term,” said Praveen Singh, Associate Vice President of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.

“On the daily charts, we can observe that the Nifty has been in the recovery process after testing the lower end of the rising channel. It has now reached the 22570 – 22600 zone where resistance in the form of 78.6% Fibonacci retracement level is placed. The hourly momentum indicator has triggered a negative crossover which indicates that the Nifty is likely to consolidate. Considering that prices have reached a crucial level and there is a loss of momentum on the hourly time frame we can expect the Nifty to consolidate over the next few trading session. We should keep a stoploss of 22400 for the long positions,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

Foreign institutional investors (FII) sold shares net worth Rs 1,874.54 crore. However, domestic institutional investors (DII) bought shares net worth Rs 3,548.97 crore on May 21, 2024, according to the provisional data available on the NSE.

WTI crude prices were trading at $78.13 down by 0.67%, while Brent crude prices were trading at $82.40 down by 0.58%, on Wednesday morning.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded lower, 0.01% at 104.61.

The Wall Street or US market rose as investors awaited Nvidia to report its quarterly results. Also, market participants are waiting for the Fed MPC’s minutes of the meeting to be released on Wednesday. Further, the Nasdaq and S&P 500 reached an all-time high. The tech-heavy index Nasdaq Composite gained 37.75 points or 0.22% to settle at 16,832.62. The S&P 500 advanced 13.28 points or 0.25% to settle the session at 5,321.41. The Dow Jones Industrial Average advanced 66.22 points or 0.17% to 39,872.99.