Asian markets cheer Fed decision to hold rates - Daily Market Update - Equity 02 Nov 2023 | Globe Capital Market LTD.
Asian markets cheer Fed decision to hold rates – Daily Market Update – Equity 02 Nov 2023

The Fed on Wednesday again held rates steady amid signs of economic growth, while labor market conditions and inflation remain above the central bank’s target. The decision also included an upgrade to the Fed’s general assessment of the economy.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.67% to 1.64%.
  • European markets ended on a positive note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is up by 26 points, Nifty futures likely to open around 19200 levels (as on 8:30AM).


News highlights from across the globe

  • Shares in Asia advanced following gains in U.S. stocks and bonds as the Federal Reserve held interest rates unchanged, bolstering hopes the rate-hiking cycle may be over.
  • The S&P 500 rose 1.1% on Wednesday. The advance placed the U.S. index on track for its best week since March while the tech-heavy Nasdaq 100 benchmark rallied 1.8%. U.S. equity futures edged higher in early Asian trading.
  • Brent crude was trading at $84 a barrel and the yield on the 10-year US bond was trading at 4.71%.


Important news updates from the domestic front

  • Maruti Suzuki India received a show cause notice from Agra’s Legal Metrology Department for not mentioning MRP on the listed products available for sale on the company’s website.
  • Tata Steel will issue 67 shares of Tata Steel for every 10 shares held in Tata Steel Long Products following the amalgamation. It also approved the Scheme of Amalgamation of Bhubaneshwar Power, a wholly owned subsidiary, into and with its parent company.
  • Indian Oil: SEBI has introduced a common online dispute resolution portal to facilitate the online resolution of all kinds of disputes arising in the Indian Securities Market for the members of the company.
  • Inox Wind allotted preference shares worth Rs 400 crore to Inox Wind Energy on a private placement basis.
  • Bharti Airtel said it doesn’t agree with the latest notice from DoT imposing a penalty of Rs 73,000 for the alleged violation of subscriber verification norms and will take action for reversal.
  • Ultratech Cement issued a corporate guarantee of $73.50 million in favour of Abu Dhabi Commercial Bank PJSC for credit facilities availed by its wholly-owned subsidiary in the UAE, UltraTech Cement Middle East Investments.
  • JK Tyre and Industries approved an investment of Rs 1,025 crore for the expansion of tyre manufacturing capacity. Manufacturing capacity to increase by 19.45%.
  • Adani Cement expects the acquisition of Sanghi Industries to close in Q3 FY24. The company had announced the acquisition of Sanghi Industries in August 2023 at an enterprise value of Rs 5,000 crore.
  • Vedanta: New Century exercised the option to acquire the Copper Mines of Tasmania from Mt Lyell Copper Mine in Australia, Monte Cello BV, a 100% subsidiary of Vedanta. The sale transaction includes a $10 million payment by New Century to MCBV, the replacement of a $4.5 million closure bond, and a $10 million payment on CMT achieving its first commercial production. MCBV shall also be entitled to receive a royalty consideration based on the future revenues of CMT.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on higher side, failed to sustain at the higher levels and kept on sliding throughout the day and settled near day’s lows below 19000 levels after a cut of 90 points from its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were down 0.18% & 0.07% decline of frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Realty and Media was at the top of the tally, gained 1.5% & 0.88% respectively. On the other hand, Metal, IT and Auto index led the declines, fell in range 0.5% to 1.43%.

Nifty index is trading in a narrow range i.e. 18800 -19250 levels for past couple of sessions, either side break from this range will drive the market in that direction in short term.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty, Banknifty and Finnifty futures with an increase in open interest by 4.33%, 1.31% and 6.7% respectively.

On sectoral front, long buildup was seen among Media and Telecom stocks whereas short buildup was seen among Automobile, Metals, Chemicals, Capital Goods and FMCG stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18800 PE and 19100 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1817 Cr in the cash segment, sold stocks futures and index futures worth Rs. 1208 Cr and Rs 362 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1622 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19225-19350; Supports 18940-18820

Banknifty – Resistances 43440-43800; Supports 42450-42040

Finnifty – Resistances 19380-19510; Supports 19050-18880






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