" Today Reliance AGM & NVIDIA down 6.5%" Pre-Market Report , Nifty & Bank Nifty 29 Aug 2024 Range
Summary
TLDRIn this video, the focus is on Nvidia's Q2 results which beat analyst expectations with a $30 billion revenue and EPS of $6.8, leading to a $50 billion share buyback announcement. Despite this, Nvidia shares fell over 6.5% in the aftermarket due to strong selling pressure. The video also discusses the impact of Nvidia's results on the S&P 500 and NASDAQ, and anticipates increased market volatility due to Reliance's AGM, where investors await updates on IPOs, new energy plans, 5G monetization, and succession strategies. The script concludes with a technical analysis of Nifty and Bank Nifty, highlighting key support and resistance levels.
Takeaways
- 📉 Nvidia reported better-than-expected Q2 results with revenue of $30 billion and earnings per share of $68, surpassing analyst estimates of $28 billion and $64 respectively.
- 📈 Despite the positive results, Nvidia's stock dropped over 6.5% in the aftermarket, likely due to strong selling pressure after a significant year-to-date increase of over 160%.
- 🌐 The US market closed negatively, with Dow Jones down by 0.31%, S&P 500 down by 0.58%, and NASDAQ down by 1.14%, influenced by Nvidia's results and a general market nervousness.
- 📊 VIX increased by 10%, moving from around 15.5 to 17, indicating heightened market volatility.
- 🇮🇳 Nifty opened marginally down at 25,33, indicating a gap down opening of 20 to 40 points, possibly due to the monthly expiry day and global market sentiment.
- 🔄 Indian ADRs like Infosys and Wipro corrected after a massive increase, while banking ADRs like ICICI Bank and HDFC Bank closed marginally negative.
- 🛢️ Oil prices dropped further by 1.5% due to expectations of lower summer demand in Europe and the US, with crude trading around $74.5 per barrel.
- 📅 Reliance AGM is expected to start at 2:00 p.m., adding to market uncertainty and potential volatility, especially with the US market's negative close and Nvidia's selling pressure.
- 🔍 Investors are looking for updates from Reliance AGM on the IPO of Jio and Retail as a separate entity, the new energy business plan, 5G monetization, and succession plans.
- 📊 Technical analysis shows Nifty forming a doji candlestick, indicating indecision, with support at 24,800 and resistance at 25,400 to 25,500. Bank Nifty showed a bearish pattern with support at 39,500 to 38,500 and resistance at 51,500 to 51,600.
Q & A
What is Nvidia's weightage in the S&P 500 index?
-Nvidia is the second-highest weightage company in the S&P 500 index.
How did Nvidia's Q2 results compare to analyst expectations?
-Nvidia's Q2 results exceeded analyst expectations, with a top-line revenue of $30 billion versus an expected $28 billion and earnings per share of $6.8 versus an expected $6.4.
What was Nvidia's market reaction after releasing their Q2 results?
-Despite the positive results, Nvidia's shares dropped over 6.5% in the aftermarket, indicating strong selling pressure.
What was the impact of Nvidia's results on the broader market?
-The broader market, particularly the S&P 500 and NASDAQ, experienced negative momentum, with the NASDAQ being significantly influenced and dropping 1.14%.
What is the significance of Reliance's AGM scheduled for 29th August 2024?
-The Reliance AGM is significant as it may provide updates on the IPO of Geo Reliance Retail and the new energy business, among other things, which could impact the stock value.
What are the four key expectations from Reliance's AGM?
-The market expects updates on the IPO of Geo Reliance Retail, information on the new energy game plan, details on the 5G monetization plan, and insights into the succession plan for the management of the company.
How did the US market perform before the Reliance AGM?
-The US market closed negative, with all three major indices showing losses, and the NASDAQ being particularly affected by Nvidia's selling pressure.
What is the current status of oil prices as discussed in the script?
-Oil prices dropped further by 1.5%, with double crude trading around $74.5 per barrel and Brent crude at $77.5 per barrel, due to lower-than-expected summer demand.
What was the technical analysis of Nifty and Bank Nifty as per the script?
-Nifty formed a doji candlestick pattern indicating indecision but has consistently formed higher highs. Bank Nifty underperformed and formed a small bearish candle pattern but sustained above key moving averages.
What are the immediate support and resistance levels for Nifty as per the options data?
-The immediate support for Nifty is at 24,800, and the resistance levels are at 25,000 and then 25,400 to 25,500.
What advice does the script give regarding investment decisions based on the information provided?
-The script advises not to make any investment decisions based on the information provided as it is for educational purposes only and not financial advice.
Outlines
📉 Nvidia's Q2 Results and Market Reaction
In the first paragraph, the video script discusses Nvidia's Q2 financial results, which exceeded analyst expectations with a top-line revenue of $30 billion and earnings per share of $68, compared to the predicted $28 billion and $64, respectively. Despite the positive results and a future guidance that also surpassed estimates, Nvidia announced a $50 billion share buyback. However, the stock experienced significant selling pressure, dropping over 6.5% in the aftermarket, possibly due to its 160% year-to-date increase and a market cap exceeding 3 trillion. The script also touches on the broader market sentiment, with the US market closing negatively and the VIX index rising by 10%. The Nifty and Bank Nifty are mentioned, along with the impact of the monthly expiry day and expectations from Reliance's AGM on the market.
📈 Expectations from Reliance AGM and Market Overview
The second paragraph delves into the expectations surrounding Reliance's Annual General Meeting (AGM), focusing on potential updates regarding the IPO of its GE and Retail segments, which were announced to be spun off as separate entities within five years. The market is also anticipating news on the new energy business, including the hydrogen plant and fuel cell developments, as well as the 5G monetization strategy and succession plans within the company. The script provides a summary of the US market's negative close, influenced by Nvidia's selling pressure, and the potential impact on the Indian market. Technical analysis of Nifty and Bank Nifty is included, highlighting key resistance and support levels, along with the implications of the monthly options data. The video concludes with a reminder for viewers to subscribe and like for educational purposes, and a disclaimer about investment decisions.
Mindmap
Keywords
💡Nvidia
💡S&P 500 index
💡Q2 results
💡Earnings per share (EPS)
💡Stock market cap
💡Aftermarket
💡Volatility
💡Reliance AGM
💡IPO
💡5G monetization
💡Technical analysis
Highlights
Nvidia has the second-highest weightage in the S&P 500 index.
None of the 'magnificent seven' companies delivered good results this quarter.
Global Market momentum has been nervous due to the Jackson H Symposium and anticipation of company results.
Nvidia's Q2 results showed a top-line revenue of $30 billion, beating analyst expectations of $28 billion.
Earnings per share for Nvidia came in at $68, surpassing the expected $64.
Nvidia's future guidance also exceeded analyst estimations.
Nvidia announced a $50 billion share buyback.
Despite good results, Nvidia's stock dropped over 6.5% in the aftermarket due to strong selling pressure.
US market closed negatively, with Dow Jones down by 0.31%, S&P 500 down by 0.58%, and NASDAQ down by 1.14%.
VIX increased by 10%, moving from around 15.5 to 17.
Nifty opened marginally down, indicating a gap down opening of 20 to 40 points.
Most IT stocks increased massively, but ADRs corrected, indicating a negative .5% difference.
Reliance AGM is expected to start at 2:00 p.m., adding uncertainty and volatility to the market.
Investors are expecting updates on the IPO of Jio and the Retail business, and the new energy business.
Market is looking for clarity on Reliance's 5G monetization plan and succession plan details.
Oil prices dropped further by 1.5% due to lower summer demand expectations.
Technical analysis shows Nifty forming a doji-like candlestick, indicating indecision in the market.
Bank Nifty underperformed, forming a small bearish candle pattern.
Monthly options data suggests Nifty might face resistance at 2500 with support at 2400.
Transcripts
hello everyone Nvidia is the second
highest weightage in the S&P F index so
far in the magnificient seven companies
none of them delivered good results this
quarter hence in the past three sessions
after the Jackson H Symposium the whole
Global Market momentum had been nervous
and expecting this results so in this
video first we will look at those and
then today is reliance AGM hence we can
talk about what's the expectation what
time it's starting all those details in
addition to our regular pre-market
report for today 29th August 2024 for
the near stock market in terms of nifty
and Bank Nifty so without delay let's
get started I mean after the US market
closed last night Nvidia released their
Q2 results on the top line revenue for
the quarter was $30 billion against the
analyst expectation of $28 billion and
for the earnings per share it came 68
against expectation of 64 us so both the
revenue as well as the profit beats the
analyst estimation then second even the
future guidance also beats the analyst
estimation on top of that Nvidia
announced the $50 billion worth of
shares buy back hence the results or
future guidance whatever they released
last night was really good however year
to date the stock increased over 160%
and at present it trates above3 trillion
US market cap so despite the good
results in the aftermarket Nvidia shares
at present dropped over 6.5% I mean if
required please pause and have a look
despite being in after market the price
was very volatile and at one point of
time it was down above 8% it looks like
whatever the results irrespective of it
the stock got the strong selling
pressure so that's the Nvidia status the
results were good but because of the
recent runup the stock got severe
selling pressure and that to very much
intense enough to push down the stock by
over 6.5% anyway even before the result
release anticipating the selling already
US market was negative and all three
major index closed negative as well Dow
Jones down by 31% S&P fund decreased 58%
and NASDAQ was the one majorly
influenced on the negative side down
1.14% in case of vix it increased by 10%
and moved to 17 from around 15.5 however
that negativity was not seen in the gift
Nifty early morning today it was down
marginal
25,33 since today is the monthly expir
day I don't expect any premium so for
now it's indicating the gap down opening
of 20 to 40 points then regarding Indian
ADR because most of the it stocks
increased massively yesterday it adier
last night just corrected so I don't
think the positive close of infosis and
vpro is fresh however on the banking
side both ICC Bank ADR and HDFC Bank ADR
both closed fresh marginally negative
hence if you see the arbit rage all the
four major ADR all indicating the
negative .5% difference here some of the
viewers commented why I'm saying HDFC
Bank ADR as negative especially when it
got the positive Arbitrage of near 4% to
answer that question htfc Bank ADR
always have some dollar premium like we
have future Market time premium before
the expiry date one year ago this dollar
premium was in the range of 8% but it
dropped now so only 4% here I'm saying
.5% Arbitrage because the premium
dropped to 3.93% from day before
yesterday
4.43% so there is a reduction in the
premium value itself so only I said all
four major ad are indicating the .5%
Arbitrage however on the positive side
relance gdr got the positive 1%
difference which we can expect to to
favor the market about oil now in Europe
and us there is a sign that the summer
oil demand will be lower compared to
what earlier they estimated so oil price
dropped further 1.5% so at the time of
this video double crude trading around
74.5 per barrel and Bren crude trading
at 77.5 per barrel those are the things
happened in the US market now let's look
at the India related info first of all
as I said earlier today is reliance AGM
and it's expected to start at 2:00 p.m.
so today between 2:00 p.m. to 3:30 p.m.
along with the exper day volatility and
Nvidia selling pressure in the US future
Market this Reliance AGM also adds more
uncertainity and expects to increase
more volatility anyway let's look at
what investors are expecting from the
AGM first some information regarding the
IPO listing of Geo Reliance retails and
new energy business I mean 2019 at that
time Mukesh Amani made an announcement
that in the next 5 years his aim is to
list the GE and Retail as a separate
entity and now that 5year period is over
but so far there is no progress on this
statement so Market at present expecting
some more information regarding that
since that will unlock the stock value
at present Jeff estimates the Reliance
GE will be valued around $12 billion and
also I hope regular viewers remember
this there was a constant talk between
Reliance with Saudi aramco about the
stake sale in the o2c business but
however it didn't materialize so the
first expectation is regarding the IPO
information or some info about the
Strategic stock sale then the second
thing is about the new energy game plan
I mean in 2022 Mukesh Amani mentioned
that he's going to invest around1
billion worth in building up the jiga
factory hydrogen plant and Fuel Cell
related development but however so far
Reliance industry invested only around 2
billion us so in this space Also Market
wants some clarification like what is
the plan for the future third 5G
monetization plan I mean how much of the
country they covered so far and what's
the expected date when they will break
even on these Investments and finally
regarding the succession plan like after
mukes Amani from when they three
children will start managing their own
segment business from when as
independent so these are the four things
Market expects some answers around from
today's Reliance AGM as a summary US
market closed negative on top of that
Nvidia selling pressure made S&P 5 and
NASDAQ future market value to drop
another .5 to 1% hence the global
momentum is not good however for now
gift Nifty is indicating only the gap
down opening of 20 to 40 points but
still selling May intensify if the US
future Market further Falls means just
in case if Reliance gave some input or
timeline regarding the Dem merger then
that will be a huge positive as I said
earlier three things monthly expiry day
nidus result impact and Reliance AGM
influence all these three will drive the
market today regarding the things to
look out at 2:30 p.m. Europe's consumer
confidence and business climate data is
due to release then in the night US GDP
data data weekly jobs data PC prices and
7year note auction are some of the items
we need to keep an eye out today coming
to technical Nifty opened flat and hit a
new all-time high
25130 however the last hour profit
booking made it to end below 25,00 thus
on the daily chart Nifty formed a do
like Candlestick same as the previous
session indicating extended indecision
however Nifty has consistently formed a
higher high and the positive buas
momentum indicators hence a decisive
move above 25,00 or a close Above This
level could confirm a further rally in
the market otherwise Nifty May slip
lower as the absence of sustained buying
might trigger the selling pressure the
immediate support is at 24,800 in case
of Bank Nifty it opened 70 points gap
down and underperformed Nifty finally
closed at around
5,140 thus on the daily chart Banky
formed a small bearish candles pattern
and traded within the previous days
range whereas on the positive side Bank
Nifty sustained above the downward
sloping resistance trend line 10day
exponential moving average and it
crossed to the 50-day exponential moving
average hence we can expect ,950 to
,850 shall act as the crucial support
Zone while 51,500 to
5,600 is the immediate hurdle Zone
regarding the monthly options data the
maximum call option open interest was at
25,500 strike followed by 26,000 and
25,00 strike with new call option rating
at 25,400 strike followed by 25,00 and
25,200 on the put side the maximum open
was at 25,000 strike followed by 24,800
and
24,900 with a new put option writing at
24,700 strike followed by
24,900 and
24,800 th from options data Nifty might
face resistance at 25,00 for the move
towards 25,400 to 25,500 area with
support at 25,000 and then
24,900 so that's all in this video hope
you all got some extra information
please consider subscribing the channel
and liking the video so it will help me
beat the YouTube algorithm and also
motivate me to do more please don't make
any investment Deion based on this as
not say be adviser I'm doing this for me
and viewers educational purpose only
thanks for watching
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