US Elections 2024, Stock Market: What Gift Nifty Signals as Donald Trump Leads in 3 States

Despite strong signals from Asian markets, Gift Nifty opened on a cautious note on Wednesday and hinted at a subdued start to domestic trading later today. Early US election trends show Republican candidate Donald Trump leading in three US states and Democratic candidate Kamala Harris leading in one state.

Shares of Gift Nifty were trading at 24,256.70, down 40 points or 0.16 percent. Gift Nifty’s muted move contrasted with positive trading in Asian stock markets such as Japan and South Korea, as well as one-day gains in US equities. Republican candidate Donald Trump was reportedly leading in Kentucky, West Virginia and Indiana, while Democratic candidate Kamala Harris was leading in Vermont.

Data showed Japan’s Nikkei traded at 38,843.50 in early trade, up 263.50 points, or 0.68%. Australia’s S&P/ASX 200 index rose 67.90 points, or 0.83 percent, to 8,200.90. South Korea’s Kospi rose 4.05 points, or 0.16%, to 2,581.57. Chinese stocks have not yet opened.

In overnight trading, the Dow Jones Industrial Average jumped 427.28 points, or 1.02 percent, to 42,221.88. The S&P 500 rose 70.07 points, or 1.23 percent, to 5,782.76.

In the case of Nifty, the options data reflects a cautious outlook with call sales significantly outpacing put option activity, indicating a bearish stance.

“The highest open interest is concentrated on the 25,000 strike call (Rs 79.95 lakh contracts) and the 23,500 strike put (Rs 51.33 lakh contracts). Active trading is centered in the 24,200-24,500 call range and 23,800-24,100 put range. Strong resistance from call writers (bears) in the 24,200-24,500 area contrasts with solid support in the 23,800- 24,100, reflecting resistance shifting to lower levels amid bearish sentiment,” SAMCO Securities said.

“Elevated call writing in this resistance zone suggests increased confidence among sellers, while unwinding put calls indicates a strengthening bearish outlook. The put-call ratio (PCR) fell from 0.79 to 0.67, adding to the cautious sentiment. Currently, the ‘maximum pain’ level is at 23,900, which is likely to play a key role in influencing the movement of the index,” it said.