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Stock market trading guide for today: Nifty, Go Digit IPO, Dow Jones

All you need to know before the market opens on Friday: Gift Nifty hints tepid start; global markets slip as Fed officials warn on rate cut bets; Go Digit IPO closes today; Market open on Saturday.

stock markets, Nifty50

Rex Cano Mumbai

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Pre-market stock update for May 17, Friday: Volatility is likely to remain an order of the day for the Indian equity market as we near the conclusion of Lok Sabha elections. That apart, global news and FIIs flow also weigh on the trading sentiment. 

After yesterday’s extreme volatile session, the Nifty is likely to open marginally lower this morning as global mood seems tepid. At 07:00 AM, Gift Nifty futures quoted at 22,480, suggesting a likely marginal dip on the Nifty 50 index.

Global markets

Overnight, the US market ended off record highs after several Federal officials warned that the central bank still needed more confidence to cut interest rates, and that the timing of the move remained uncertain.

Dow Jones crossed the 40,000-mark in intra-day deals, but eventually settled at 39,869, down 0.1 per cent. The S&P 500 and Nasdaq slipped 0.2 per cent each.

The US 10-year bond yield remained subdued around 4.365 per cent, near about five week lows. Among commodities, Gold futures eased back to $2,380 levels, while Brent Crude Oil continued to hover around $83 per barrel.

Equity markets in the Asia Pacific region were all in red this morning. Japan’s Nikkei declined 0.8 per cent. The Australian benchmark indices fell 0.4 per cent, and Malaysia’s Kospi was down 0.3 per cent.

Trading strategy for Friday, May 17 - Should you be a buyer or seller today? Here’s what market experts recommend:

On the technical front, the 22,300 zone is likely to cushion upcoming blips, while 22,200-22,100 is likely to act as the next support zone for Nifty, said - Osho Krishan, Sr. Analyst - Technical & Derivative Research at Angel One.

On the higher end, 22,500-22,600 is very much in the vicinity of the bulls, especially with the kind of momentum seen on the weekly settlement session, the analyst added.

Neeraj Sharma, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates too believes that the Nifty could rally to 22,500–22,600 levels in the near term. The analyst said, technically, the Nifty has surpassed the hurdle of 22,310, where the 21-day exponential moving average (21-DEMA) was placed, and managed to close above it, indicating strength. 

Rupak De, Senior Technical Analyst at LKP Securities recommends that the over the next few days, the bulls might have the upper hand in the market as the Nifty moved above the critical moving average after several days. On the higher side, the Nifty might move towards 22,600 in the short term. Support on the lower end remains at 22,250.

Stocks in focus

Among individual stocks, Vodafone Idea will be in focus after the telecom major said it loss widened to Rs 7,674 crore in the March 2024 quarter. Gail India too will see some action after the company reported near 3-fold jump in net profit at Rs 2,469 crore.

On Friday, Amber Enterprises, Atul Auto, Balkrishna Industries, Balrampur Chini, Bandhan Bank, Delhivery, GlaxoSmithKline Pharma, Godrej Industries, JB Chemicals, JSW Steel, LT Foods, NHPC, Pfizer, The Phoenix Mills, Polyplex Corporation, RCF, Rail Vikas Nigam (RVNL), Shipping Corporation of India, Shalimar Paints, Sobha, TV Today, Universal Cables, Zee Entertainment and Zydus Lifesciences are scheduled to announce Q4 results.

Primary Market Update

Go Digit General Insurance IPO closes today. The issue was subscribed up to 79 per cent as of yesterday. Subscription is open in the price range of Rs 258 - Rs 272 per share. Should you subscribe? Find out here

Other news

Lastly, today is not the final trading session of the week as equity market will be open for normal trading tomorrow May 18, Saturday in special session. The stock exchanges are conducting this trading session to check their preparedness to handle major disruption or failure, if any, at the primary site.

Trading will be in two sessions, the first session will be from 9:15 am - 10 am on the primary site, followed shift in trading to Disaster Recovery Site (DRS) from 11:30 am - 12:30 pm.

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First Published: May 17 2024 | 7:01 AM IST

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