FM Nirmala Sitharaman to table interim budget at 11 AM : Daily Market Update -1 Feb 2024 | Globe Capital Market LTD.
FM Nirmala Sitharaman to table interim budget at 11 AM : Daily Market Update -1 Feb 2024

This will be an Interim Budget, the last of Modi 2.0 government. The Parliament will convene once again later this year, maybe in July, after the next regime takes over to consider and approve a full-fledged iteration of the crucial document. Sitharaman's budget speech at 11:00 a.m. today is expected to be light on big announcements. while presenting an assessment of the past 10 years and roadmap for the days to come.

Overview and Outlook

Global Stock Market Today

  • Barring Dow, other US equity markets settled on a negative note.
  • European equity markets ended lower in range of 0.27% to 0.47%.
  • Asian markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21800 levels (as on 8:30AM).


News highlights from across the globe

  • Finance Minister Nirmala Sitharaman will take the floor today to present her sixth budget in a row.
  • The Federal Market Open Committee has kept its benchmark rate steady at 5.25-5.50% after its two day policy meeting.
  • Markets in Japan and Australia declined in early trade on Wednesday following overnight losses in tech stocks on Wall Street as the Federal Reserve Chair Jerome Powell said the central bank is unlikely to start cutting interest rates in March.
  • The Nikkei 225 was trading 327.55 point or 0.90% lower at 35,959.16, and the S&P ASX 200 was 97.10 points or 1.26% down at 7,583.60 as of 06:42 a.m.


Important news updates from the domestic front

  • One 97 Communications: The Reserve Bank of India introduced further restrictions against Paytm Payments Bank. No further deposits or credit transactions are allowed in any customer account after Feb. 29. No other banking services, apart from withdrawal or utilisation of balances, are to be allowed after Feb. 29.
  • Infosys signed a seven-year strategic collaboration with Musgrave to automate Musgrave’s IT operations by leveraging its industry-leading AI and cloud offerings.
  • UltraTech Cement: Moody’s Investors Service Inc. affirmed the company’s ‘Baa3’ issuer rating as well as its ‘Baa3’ senior unsecured rating, citing a solid balance sheet and substantially strong credit metrics.
  • Paras Defence and Space Technologies received an optical periscope contract from the Ministry of Defense.
  • Deepak Nitrite’s unit, Deepak Chem Tech, signed a Memorandum of Understanding worth Rs 9,000 crore with the Gujarat government.
  • Havells India launched for the first time a ‘Made in India’ heat pump water heater to meet the demands of residential applications.
  • Gujarat Gas signed a Memorandum of Understanding with HPCL for liquid fuels and CNG facilities.
  • Prestige Estates completed the Rs 1,000 crore Hyderabad Residential Project.
  • Triveni Engineering will buy a 26% stake in Sir Shadi Lal Enterprises via an open offer for Rs 262.1 per share.


Nifty Overview & Outlook

Benchmark Nifty index ended higher at 21725 levels after adding over 200 points to its previous closing values ahead of interim budget.

Small cap index outperformed the benchmark as it was up over 2% while MidCap index traded in line with benchmark, rose 1%.

All sectoral indices settled in green. Amongst them, Nifty Health care, Pharma, Realty and PSU Bank indices were the top performers, rose over 2% each followed by Auto and Bank index that were up 1.85% and 1.39% respectively.

Technically, Nifty index rebounded from an important supports of 21450 levels. On the higher side, resistance is placed around 21800 levels. Crossover and sustenance above 21800 levels might take it towards 22000 level in immediate near term.


Derivatives Overview & Outlook

Yesterday, Nifty futures price increased by 0.8% whereas open interest was unchanged. Short covering was seen in Banknifty and Finnifty futures with decrease in open interest by 5.5% and 0.4% respectively.

On the sectoral front, long buildup was seen in Capital Goods, FMCG, Metals, Pharma, and Chemicals stocks, whereas short covering was seen in Banking and Realty stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 21500 PE and 22500 CE closely followed by 22000 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1661 Cr in the cash segment, bought stocks futures and index futures worth Rs 3736 Cr and Rs. 802 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 2543 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22040-22175; Supports 21535-21400

Banknifty – Resistances 46700-47170; Supports 45600-45000

Finnifty – Resistances 20750-20950; Supports 20350-20150


F&O Securities in Ban Today  – SAIL, ZEEL.




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