Oil prices jump $ 3/ Bbl on Israel launches missile attack on Isfahan in response to Iran assault : Daily Market Update - 19 April 2024 | Globe Capital Market LTD.
Oil prices jump $ 3/ Bbl on Israel launches missile attack on Isfahan in response to Iran assault : Daily Market Update – 19 April 2024

Oil prices jumped $3 a barrel on Friday in reaction to explosions had occurred in Iran, sparking concerns that Middle East oil supply could be disrupted. Brent futures jumped $3.03, or 3.5%, to $90.14 a barrel by 0147 GMT, and U.S. West Texas Intermediate crude rose $3.03, or 3.7%, to $85.76 per barrel.

Overview and Outlook

Global Stock Market Today

  • Barring DOW, other US equity markets settled on a flat to negative note.
  • European equity markets settled on a flat to positive note.
  • Asian equity markets are trading lower.
  • GIFT Nifty is trading down by 300 points, Nifty futures likely to open around 217000 levels (as on 8:30AM).


News highlights from across the globe

  • Benchmarks in Japan declined after data showed the country’s inflation rose less than expected, which weighed on investors’ expectation of a rate hike in near term.
  • Japan’s CPI came at 2.7% on year in March, just below 2.8% forecasted by economists in a Bloomberg’s survey. Traders expect the Bank of Japan to hold rate steady in the upcoming week, and hike in October.
  • US Treasury yields edged higher after solid economic data spurred bets the Federal Reserve will be in no rush to cut interest rates, reported Bloomberg.


Important news updates from the domestic front

  • Infosys Q4 Earnings (Consolidated, QoQ) Revenue down 2.3% at Rs 37,923 crore vs Rs 38,821 crore. EBIT down 4.3% at Rs 7,621 crore vs Rs 7,961 crore. Margin at 20.1% vs 20.5%. Net profit up 30.45% at Rs 7,975 crore vs Rs 6,113 crore. Note: Net profit was above estimates due to the Rs 1,934 crore interest on the income tax refund. To pay a final dividend of Rs 20 per share and a special dividend of Rs 8 per share.
  • Bajaj Auto Q4 Earnings (Consolidated, YoY) Revenue up 29% at Rs 11,485 crore vs Rs 8,905 crore. Ebitda up 34.3% at Rs 2,306 crore vs Rs 1,717 crore. Margin at 20.1% vs 19.3%. Net profit up 35% at Rs 1,936 crore vs Rs 1,433 crore . Recommended a dividend of Rs 80 per share.
  • ICICI Securities Q4 Earnings (Consolidated, YoY) Net profit at Rs 537 crore vs Rs 263 crore. Total income up 75% at Rs 1,544 crore vs Rs 885 crore. Board approved the re-appointment of Vijay Chandok as MD and CEO, effective May 7. Board approves appointment of T. K. Srirang as the joint MD effective May 1 for five years.
  • SJVN’s unit incorporated a JV with an Assam power distribution company named “SGEL Assam Renewable Energy Limited” to carry out business in the field of power generation from all renewable energy sources, including hydropower, by setting up power plants.
  • Nestle clarified media reports and reaffirmed its commitment to high standards of nutrition, quality, and safety. It also mentioned that the media reports had no material impact on its operations or performance.
  • Rail Vikas Nigam signed a MoU with Turkish engineering consulting and contracting firm TUMAS India for collaboration in public transportation and infrastructure projects in India.
  • Torrent Power acquired SPV MSKVY Ninth Solar as part of the 306 MW Nasik project for Rs 50 lakh.
  • Container Corporation of India signed a MoU with PSA Mesa Supply Chain to collaborate in offering seamless and cost-effective end-to-end logistics services to customers.
  • Federal Bank received an RBI nod to open a representative office in Saudi Arabia.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side but failed to sustain at higher levels and settled sharply lower below 22000 levels after a cut of 330 points from intraday highs.

Broader Markets performed in line with the benchmark as Mid and Small cap index settled on a flat to negative note; resultant, poor market breadth.

All the sectoral indices, barring Media, tracked at NSE settled lower. Amongst them, Nifty Healthcare index was down nearly 2% while majority of sectoral indices were down 1% each.

Technically, Nifty index is trading in a lower lows – lower highs formation for past couple of sessions. Going ahead, we reiterate our bearish view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 22350 levels on closing basis and expect it to test 21900-21850 levels in near term.

Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty and Banknifty futures with increase in open interest by 14.2% and 5.2% respectively, whereas long unbinding was seen in Finnifty futures with decrease in open interest by 2.2%.

On the sectoral front majority of sector settled lower, short buildup was seen among Automobile, Oil & Gas, Pharma, Cement, FMCG and Realty stocks whereas long buildup was seen in Telecom stocks.

On options front, Nifty will start the new weekly contracts with maximum positions at 23000 CE and 22000 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4260 Cr in the cash segment, sold stocks futures and index futures worth Rs 4597 Cr and Rs 7021 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 2286 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22230-21350; Supports 21970-21820

Banknifty – Resistances 47750-48000; Supports 47050-46750

Finnifty – Resistances 21170-21300; Supports 20910-20790




Important Results Today- HDFCAMC, HINDZINC, JIOFIN, WIPRO.


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