Japan’s core inflation falls to lowest level in 22 months : Daily Market Update -27 Feb 2024 | Globe Capital Market LTD.
Japan’s core inflation falls to lowest level in 22 months : Daily Market Update -27 Feb 2024

Japan's core inflation in January dropped for the third straight month to hit its lowest level in 22 months, matching the central bank's price stability target. The core consumer price index, which excludes fresh food, rose 2% from a year earlier, a decline from a 2.3% gain in December, according to data released Tuesday by the Ministry of Internal Affairs and Communications. Weak domestic demand, partly stemming from rising prices as wages remain stagnant, contributed to the economy contracting for a second straight quarter in the October-December period. The Nikkei Stock Average, however, is hitting record highs, which could give the BOJ new impetus to end its negative rate policy.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat note.
  • Barring DAX, other European equity markets settled on a flat to negative note.
  • Majority of Asian equity markets are trading in red.
  • GIFT Nifty is down by 60 points, Nifty futures is likely to open around 22100 levels (as on 8:30AM).


News highlights from across the globe

  • Stocks in the Asia-Pacific region are trading lower after Wall Street saw a pullback near record highs as traders await remarks from Federal Reserve speakers; The MSCI Asia Pacific Index was down 0.13%.
  • U.S. equities fell from record levels and traders will look out on how the market will manage to absorb heavy Treasury and corporate sales amid month-end positioning.
  • Brent crude prices were trading above $82 a barrel


Important news updates from the domestic front

  • One 97 Communication: Paytm Founder and Chief Executive Officer, Vijay Shekhar Sharma, has resigned from the board of Paytm Payments Bank. The board has been reconstituted.
  • CMS Info System: Promoter Sion Investment Holdings, an affiliate of Baring Private Equity Asia, will offer to sell 4.17 crore shares, or a 26.67% stake in the company, at a floor price of Rs 360 apiece, representing a discount of 9.3% of the current market price.
  • Union Bank of India raised Rs 3,000 crore at an issue price of Rs 135.65 per share. Morgan Stanley, Societe Generale, HDFC Life, BNP Paribas, SBI Life, and Sundaram MF are among the investors.
  • Religare Enterprises: Religare Finvest, a wholly owned subsidiary of the company, has cleared all its debts with external lenders, in turn resolving all legacy issues.
  • MCX signed a MoU with Jakarta Futures Exchange for knowledge sharing and regional development.
  • Wipro announced a joint private wireless solution with Nokia to help enterprises scale their digital transformation.
  • Canara Bank approved the stock split in the ratio of 1:5.
  • Jindal Steel and Power announced the deployment of 10 electric buses and 27 electric SUVs at its Angul unit in Odisha, India.
  • TVS Motor’s Singapore arm will raise its stake in Germany-based Killwatt GmbH to 49% from 39.28%. The company acquired 8,000 shares of Killwatt GmbH at €500 per share.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on downside and settled lower at 22122 levels after a cut of 90 points from its previous closing values after lackluster trading session.

Midcap index underperformed the benchmark as it was up down over 0.50% while Small cap index traded in line with the benchmark settled on a flat to negative note, down 0.26%.

All the sectoral indices, barring Nifty Auto & Oil & Gas index, tracked at NSE settled in red. Amongst them, Nifty IT index was the worst performers down over 1% followed by Banking & Financial pack, Consumer Durables, Metals and Pharma indices that settled down in range 0.5% to 1%.

Technically, Nifty Index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21800 levels on closing basis and expect it to test 22500 levels in immediate near term. Hence, we suggest traders to maintain buy on dips trading strategy till it is trading above the said levels.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty, Banknifty and Finnifty futures with increase in open interest by 4%, 2.8% and 14.5% respectively.

Nifty and Banknifty futures rolled 38% & 36% of open interest respectively into next contract so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 21000 PE closely followed by 21500 & 22000 PE and 23000 CE closely followed by 22300 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 285 Cr in the cash segment, bought stocks futures and index future worth Rs 1005 Cr and Rs 531 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 5 Cr only.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22300-22400; Supports 22050-21910

Banknifty – Resistances 46950-47250; Supports 46370-46050

Finnifty – Resistances 20710-20820; Supports 20550-20440


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


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