" 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.