US Bond rout deepens with no peak in sight for unmoored rates - Daily Market Update- Equity 04 Oct 2023 | Globe Capital Market LTD.
US Bond rout deepens with no peak in sight for unmoored rates – Daily Market Update- Equity 04 Oct 2023

The US 30-year yield rose to the highest level since 2007 amid expectations that the Federal Reserve will maintain interest rates at a high level and an increasing supply of Treasury debt.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 1.29% to 1.87%
  • European markets ended on negative note.
  • Asian equity markets are trading on negative note.
  • GIFT Nifty is trading down by 15 point (as on 8:30AM), Nifty futures likely to open around 19435 levels.


News highlights from across the globe

  • Asian shares slumped, tracking U.S. peers lower after employment data bolstered the case for the Federal Reserve to keep interest rates elevated and pushed up Treasury yields.
  • The S&P 500 fell to a four-month low on Tuesday.
  • Brent Crude prices were trading above $91 a barrel and the yield on the 10-year U.S. bond was trading at 4.80%.


Important news updates from the domestic front

  • HDFC Bank sent out a detailed memo to its employees detailing management changes. IT and Tech have been brought under the CEO’s purview. Ashish Parthasarthy will handle branch business, while Arvind Kapil will manage mortgages and retail businesses.
  • Maruti Suzuki received a draft assessment order from the Income Tax Authority amounting to Rs 2,160 crore for FY 2019–20. The company will file objections before the Dispute Resolution Panel. Further, it reported total output for September at 1.74 lakh units, down 1.4% year-on-year.
  • Adani Enterprises: Abu Dhabi-based IHC Capital Holding raised its stake to 5.04% through open-market deals.
  • Bajaj Finserv: Unit Bajaj Allainz General Insurance received a Rs 1,010 crore-show cause cum demand notice from GST authorities for alleged non-payment of GST on co-insurance and re-insurance premiums.
  • Avenue Supermart standalone revenue for Q2 FY24 was up 18.5% year-on-year at Rs 12,307.72 crore. The total number of stores as of September stood at 336.
  • Nestle India board will meet on Oct. 19 to mull the stock split of shares and the second interim dividend for the year 2023.
  • Hindustan Zinc will be split into three entities: zinc, silver, and recycling, said Vedanta Chairman Anil Agarwal.
  • Hero MotoCorp will start deliveries of Harley-Davidson X440s on Oct. 15, while the booking window reopens on Oct. 16.


Nifty Overview & Outlook

The benchmark Nifty index witnessed selling pressure on the first trading session of the month and settled the day at 19528 levels, down over 100 points from its previous closing values.

The Broader market outperformed the benchmark as Midcap index ended on a flat note and Small cap index rose 0.53% against 0.56% decline of the frontline index.

Majority of sectoral indices tracked at NSE settled in red. Amongst them, Auto, and Oil & Gas index fell the most, down over 1% each. On the other hand, Nifty Media and PSU Bank index led the advances, gained 1.20% and 2.38% respectively.

Going ahead, we reiterate our sideways view on Nifty index till it is trading in 19480-19800 levels. Either side break from this range might drive the market in that direction.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty futures with increase in open interest by 7.7%, long unwinding was seen in Banknifty futures decrease in open interest by 2.0% and Finnifty futures remained almost unchanged on price as well as on open interest front.

On sectoral front, long buildup was seen in Cement, Finance and Oil& Gas Cements stocks. Short buildup was seen in Metals, Chemicals, Power, Reality, FMCG and Technology stocks whereas short covering was seen in Infrastructure and Telecom Stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 19500 PE and 19700 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2034 Cr in the cash segment, sold stocks futures and index futures worth Rs 1892 Cr and Rs 1839 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1361 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19660-19720; Supports 19450-19370

Banknifty – Resistances 44900-45180; Supports 44230-43890

Finnifty – Resistances 19960-20080; Supports 19700-19600





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