Chhattisgarh, Mizoram kick-off month-long poll frenzy, voting begins - Daily Market Update - Equity 07 Nov 2023 | Globe Capital Market LTD.
07-Nov-2023
Chhattisgarh, Mizoram kick-off month-long poll frenzy, voting begins – Daily Market Update – Equity 07 Nov 2023

Voting began across polling booths in 20 seats of Chhattisgarh and 40 seats of Mizoram. This is the first phase of state Assembly election in the former, whereas the latter will see a single-phase of polling.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.10% to 0.30%.
  • European markets ended on a flat to negative note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19460 levels (as on 8:30AM).

 

News highlights from across the globe

  • Asian stocks opened lower as fresh doubts emerged on whether the Federal Reserve has finished with rate hikes, with Wall Street shares struggling to gain much traction amid a rise in bond yields.
  • Wall Street’s Monday malaise came after it notched its best week of 2023 amid dovish Fed bets, oversold technical levels and positioning.
  • Brent crude was trading at $85 a barrel and the yield on the 10-year US bond was trading at 4.63%.

 

Important news updates from the domestic front

  • Cipla approved the transfer of the generics business to the unit Cipla Pharma and Life Sciences. The generics business will be transferred for a consideration of Rs 350 crore. The sale will be completed by Dec. 31, 2023.
  • Bajaj Finance QIP opened on Nov. 6, 2023, with a floor price set at Rs 7,533.81 per equity share. The floor price is at a discount of 0.37% to the stock’s closing price of Rs 7,562.05 on Monday.
  • K.P.R. Mill approved an investment of Rs 250 crore for the expansion of fabric processing capacity. Fabric processing capacity is set to increase from 25,000 MT to 37,000 MT per year. It also approved an investment of Rs 100 crore to increase solar power generation capacity to 37 MW.
  • Quess Corp approved buying a 4.5% stake in Vedang Cellular Services from the promoter for Rs 6.05 crore, increasing its total stake to 96.97%. The board also approved the acquisition of an additional 46.09% stake in unit Stellarslog Technovation for Rs 6.8 crore, increasing its total stake to 100%.
  • Central Bank of India: Ministry of Finance extended MV Rao’s term as MD and CEO till July 31, 2025, from the current notified term ending on Nov. 29, 2024.

 

Nifty Overview & Outlook

The benchmark Nifty index extended gains for the third consecutive trading sessions and settled above 19400 levels after adding 181 points to its previous closing values.

Small cap index outperformed the benchmark as it was up nearly 1.5% while Midcap index settled on a positive note, up 0.61%.

All the sectoral indices, barring Nifty PSU Bank & Consumer Durables index, tracked at NSE settled red. Amongst them, Healthcare, Metal, Oil & Gas and Pharma indices settled higher in range 1.28% to 1.36%.

Technically, Nifty index is trading tad below the resistance levels of upward sloping trendline i.e. 19425 levels. Going ahead, crossover and sustenance above 19425 levels will be positive development that might take it higher towards 19600-19650 levels in immediate short term.

 

Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty futures with decrease in open interest by 1.1%, whereas long buildup was seen in Banknifty and Finnifty futures with increase in open interest by 2.8% and 3.9% respectively.

All F&O sectors settled higher. amongst them, Cement, Oil & Gas and FMCG stocks witnessed maximum addition of long positions whereas short covering was seen in Finance and Power stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19300 PE and 19500 CE.

 

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 549 Cr in the cash segment, bought stocks futures and index futures worth Rs 693 Cr and Rs 1258 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 596 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19540-19610; Supports 19350-19270

Banknifty – Resistances 44100-44350; Supports 43350-43070

Finnifty – Resistances 19710-19810; Supports 19450-19340

 

BANSCRIPT – GNFC

 

Key Results Today –APOLLOTYRE, BALRAMCHIN, CUMMINSIND, DEEPAKNI, DEVYANI, IRCTC, MIDHANI, NAUKRI, POWERGRID, ZYDUSLIFE

Disclosure

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.