SEBI says institutional investors need to disclose short sales upfront: Daily Market Update Equity 08 Jan 2024 | Globe Capital Market LTD.
SEBI says institutional investors need to disclose short sales upfront: Daily Market Update Equity 08 Jan 2024

Markets watchdog SEBI on Friday said that institutional investors have to disclose upfront at the time of placing an order whether a proposed transaction is a short sale or not, a significant move aimed at curbing market volatility. The Securities and Exchange Board of India has made certain changes with respect to norms pertaining to short selling in the market.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a flat to positive note.
  • European equity markets settled lower in range 0.14% to 0.44%.
  • Majority of Asian equity markets are trading in red
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21770 levels (as on 8:30AM)


News highlights from across the globe

  • U.S. stocks hinted at a rebound after a dour start to the year as investors digested data hinting that the Federal Reserve can pull off a soft landing for the world’s largest economy.
  • Brent crude was trading 0.13% lower at $78.66 a barrel


Important news updates from the domestic front

  • Titan reported a 22% revenue growth in YoY terms and added 90 stores in Q3, with total stores now at 2,949.
  • Marico’s Q3 consolidated revenue declined to a low single-digit on a year-on-year basis and saw robust gross margin expansion on a YoY basis.
  • Federal Bank: The Reserve Bank of India has asked the bank for its succession plans. The regulator has asked the bank to submit at least two fresh names for the roles of managing director and chief executive officer.
  • Adani Wilmar estimated that elevated demand from the festive and wedding seasons benefited the company in the branded oil and foods segment, and it recorded the best-ever volume during the quarter.
  • Tata Steel reported India’s steel output at 5.32 million tonnes, up 6% YoY, and deliveries at 4.88 million tonnes, up 10% YoY, in its Q3 business update.
  • JSW Steel: The unit received possession of 2,678 acres of forest land from the Odisha government for setting up an integrated steel plant with a 13.2 MTPA crude steel manufacturing capacity.
  • Reliance Power signed an agreement with DBS Bank India in the settlement of its entire obligations concerning its borrowings.
  • Godrej Industrie’s chemical division signed a MoU with the Gujarat government to invest Rs 600 crore over the next four years.
  • SJVN’s unit, SJVN Green Energy, signed a power usage agreement with Uttarakhand Power Corp. to supply 200 MW of solar power from the under-construction 1,000 MW Bikaner. The development cost of the project is Rs 5,491 crore.
  • TVS Motor signed a memorandum of understanding with Tamil Nadu government with the proposal to invest Rs 5,000 crore over five years in the state.


Nifty Overview & Outlook

The benchmark Nifty index ended on a positive note at 21710 levels, added over 50 points to its previous closing values after a lackluster trading session.

Small cap index outperformed the broader markets as it was up nearly 1% while Midcap index ended on a flat note.

Performance on the sectoral front was mix. Amongst them, Nifty IT index were at the top of the tally, rose over 1% followed by Auto and Realty index that were up 0.44% and 0.36% respectively.  On the other hand, Nifty Healthcare index led the decline down, 0.6%.

Technically, Nifty index is trading in a range for past couple of sessions. Going ahead, we expect markets to trade sideways till it is trading in 21800-21500 levels on a closing basis. Either side break and sustenance from the said range will open the doors for next directional move in that direction.


Derivatives Overview & Outlook

Last Friday, no significant changes was seen in Nifty, Banknifty and Finnifty futures on price front. On open interest front, Nifty future open interest increased by 2.2% whereas Banknifty and Finnifty futures open interest decreased by 6.4% and 28.9% respectively.

On the sectoral front, long buildup was seen among Technology stocks along with long unwinding was seen in Chemicals, Infrastructure and Realty stocks. Short covering was seen in Oil & Gas stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 21000 PE and 22500 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 3290 Cr in the cash segment, sold stocks futures and index futures worth Rs. 4960 Cr and Rs. 691 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 7297 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21900-22050; Supports 21600-21470

Banknifty – Resistances 48735-49000; Supports 48050-47750

Finnifty – Resistances 21700-21800; Supports 21450-21330




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