Crude oil steadies after tumbling almost 6% on rising demand risks - Daily Market Update- Equity 05 Oct 2023 | Globe Capital Market LTD.
Crude oil steadies after tumbling almost 6% on rising demand risks – Daily Market Update- Equity 05 Oct 2023

Oil steadied after signs of weakening demand and concerns about a slowdown in global growth sparked the steepest one-day plunge in more than a year. West Texas Intermediate traded near $84 a barrel after sinking 5.6% on Wednesday. The drop came after official US data showed the weakest seasonal demand for gasoline in 25 years and a small build in crude holdings.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.39% to 1.35%
  • European markets ended on mixed note.
  • Asian equity markets are trading on positive note.
  • GIFT Nifty is trading up by 17 point (as on 8:30AM), Nifty futures likely to open around 19500 levels.


News highlights from across the globe

  • Shares rose in Asia after stocks rallied on Wall Street, bringing some relief to financial markets after losses.
  • The S&P 500 rose 0.8% in New York, its biggest gain in almost three weeks, while the Nasdaq 100 advanced 1.5%, its best day since August.
  • Brent Crude prices were trading above $86 a barrel and the yield on the 10-year U.S. bond was trading at 4.74%.


Important news updates from the domestic front

  • Hindustan Aeronautics announced the Indian Air Force will procure 97 more LCAs after it delivered the first LCA Tejas twin-seater aircraft.
  • Punjab National Bank lender reported CASA at Rs 5.38 lakh crore, up 2.6% year over year.Gross advances grew 13.8% to Rs 9.45 lakh crore, and total deposits stood at Rs 13.09 lakh crore, up 9.7%.
  • Marico domestic volumes grew in a low single-digit percentage range over the previous year, dragged by a persisting weakness in rural demand. Category-wise, sales volumes in its Saffola edible oil and Parachute coconut oil grew in low single-digits, aided by price cuts, while the value-added hair oils segment grew in low single-digit in value terms.
  • IDFC First Bank: CARE Ratings upgraded the bank’s rating for long-term debt instruments to AA+/Stable from AA/Stable.
  • Hero MotoCorp has received 13,688 bookings for its newly launched Karizma XMR. Dispatches to dealerships have already started, and customer deliveries will begin in the festive period this month.
  • Bandhan Bank reported CASA at Rs 43,161 crore, up 6.5% year over year.Loans and advances grew 12.3% to Rs 1,07,633 crore, and total deposits stood at Rs 1,12,074 crore, up 12.8%.
  • L&T Finance disbursements for the second quarter were up 32% year over year at Rs 13,490 crore. Retail loan book up 33% year over year to Rs 69,400 crore.
  • RBL Bank reported CASA at Rs 32,075 crore, up 12% year over year, and CASA ratio as of Sept. 30 at 35.7% vs. 37.3% a quarter ago. Gross advances were up 21% year over year at Rs 78,186 crore and total deposits at Rs 89,774 crore, up 13%.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on downside. Smart recovery led by FMCG and IT stocks helped the benchmark index to settle at day’s highs at 19436 levels, down nearly 100 points from its previous closing values.

Broader market underperformed the benchmark as Midcap & Small Cap index down over 1% each.

All the sectoral indices, barring Nifty FMCG & IT, tracked at NSE settled in red. Amongst them, Nifty PSU Bank index was the worst performer, down nearly 3% followed by Nifty Healthcare, Pharma, Media and Realty index that settled down in range 1.40% to 1.73%.

Technically, Nifty index breached an important supports of 19500 levels and settled below the said support levels. Going ahead, we reiterate our short term bearish view on Nifty index till it is trading below 19700 levels on closing basis and expect it to test 19200 and lower levels in near term.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty, Banknifty and Finnifty futures with increase in open interest by 3.9%, 27.7% and 12.3% respectively.

On sectoral front, short buildup was seen in majority sectors leading by Banking, Reality, Technology, Finance, Capital good and Cements stocks whereas long unwinding was seen in Infrastructure, Power and Media stocks.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 19400 PE and 19600 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4424 Cr in the cash segment, sold stocks futures and index futures worth Rs 7185 Cr and Rs 560 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1769 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19620-19710; Supports 19320-19210

Banknifty – Resistances 44650-44900; Supports 43800-43600

Finnifty – Resistances 19900-20000; Supports 19620-19540





Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.