" Today Reliance AGM & NVIDIA down 6.5%" Pre-Market Report , Nifty & Bank Nifty 29 Aug 2024 Range

Summary

In 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

00:00

📉 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.

05:01

📈 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.

Keywords

💡Nvidia

Nvidia is a leading technology company known for its graphics processing units (GPUs) and is a significant component of the S&P 500 index. In the video, Nvidia's Q2 results are discussed, highlighting its financial performance and its impact on the stock market. The term is used to illustrate the company's influence on market sentiment and its role in the current economic narrative.

💡S&P 500 index

The S&P 500 index is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is often used as a benchmark for the overall U.S. stock market. In the script, Nvidia's weightage in this index is mentioned, emphasizing its importance in the broader market dynamics.

💡Q2 results

Q2 results refer to the financial results of a company for the second quarter of its fiscal year. These results are crucial as they provide insights into a company's performance and are closely watched by investors. The script discusses Nvidia's Q2 results, noting that they exceeded analyst expectations, which is a key point in the video's discussion on market reactions.

💡Earnings per share (EPS)

Earnings per share (EPS) is a measure of a company's profitability on a per-share basis. It is calculated by dividing net earnings by the number of shares outstanding. In the video, Nvidia's EPS for Q2 is mentioned as being higher than expected, indicating strong financial performance.

💡Stock market cap

Stock market capitalization, or market cap, is the total market value of a company's outstanding shares of stock. It is calculated by multiplying a company's shares outstanding by the current market price of one share. The script mentions Nvidia's market cap, reflecting its size and value in the stock market.

💡Aftermarket

Aftermarket refers to the period after the official trading hours of a stock exchange, during which trading can still occur but is less regulated. The script discusses Nvidia's share price performance in the aftermarket, noting a drop despite good results, which is a significant event in the video's narrative.

💡Volatility

Volatility in finance refers to the degree of variation of a trading price series over time. It is used here to describe the unpredictable movements in stock prices, particularly in the context of Nvidia's stock and the overall market conditions discussed in the video.

💡Reliance AGM

AGM stands for Annual General Meeting, a yearly meeting of a company's shareholders. Reliance AGM is a significant event for investors as it may provide updates on the company's direction and performance. The video discusses expectations for Reliance's AGM, including potential announcements about IPOs and business strategies.

💡IPO

An Initial Public Offering (IPO) is the first sale of stock by a company to the public. It often marks the company's entry into the stock market. The script mentions the potential IPO of Reliance's retail and new energy businesses, which is a key point of interest for investors watching the AGM.

💡5G monetization

5G monetization refers to the process of generating revenue from 5G technology investments. In the video, it is mentioned as a topic of interest for investors, who are looking for updates on how Reliance is capitalizing on its 5G investments and when they expect to break even.

💡Technical analysis

Technical analysis is a method used in the stock market to evaluate investments and identify trading opportunities by analyzing statistics generated by market activity, such as past prices and volume. The video concludes with a technical analysis of Nifty and Bank Nifty, providing insights into potential market movements based on chart patterns and indicators.

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

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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