Oil falls to three-month low as bearish demand indicators grow - Daily Market Update - Equity 08 Nov 2023 | Globe Capital Market LTD.
Oil falls to three-month low as bearish demand indicators grow – Daily Market Update – Equity 08 Nov 2023

Oil fell to a three-month low as a forecast drop in US gasoline consumption added to a growing array of indicators suggesting the demand outlook is worsening. Global benchmark Brent fell toward $81 a barrel after plunging 4.2% on Tuesday, while West Texas Intermediate was near $77. American gasoline demand will drop to a 20-year low next year on a per-capita basis, according to a US government report, with prices at the pump and inflation likely causing a reduction in discretionary driving.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.17% to 0.90%.
  • European markets ended on a flat to negative note.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19520 levels (as on 8:30AM).


News highlights from across the globe

  • Stocks in Asia opened on a mix note after a rally in big tech saw the S&P 500 notch up its longest streak of gains in two years.
  • The S&P 500 gained for a seventh day. U.S. equities advanced even after some central bank officials emphasized that bringing inflation fully down to the 2% goal is their main focus.
  • Brent crude was trading at $81 a barrel and the yield on the 10-year US bond was trading at 4.57%.


Important news updates from the domestic front

  • Inox Wind will raise Rs 500 crore through the issue of preference shares. The board approved the raising of funds by way of the issuance of 0.01% non-convertible, non-cumulative, participating, redeemable preference shares of the face value of Rs 10 each.
  • Lupin received U.S. FDA tentative approval for the Invokamet generic.
  • Voltas denied news reports that the Tata Group is considering selling the home appliance operations of the company.
  • SJVN received a letter of intent for the purchase of 200 megawatts of solar power from Uttarakhand Power Corp. UPCL to purchase solar power for Rs 2.57 per unit from the company’s 1,000 MW Bikaner plant.
  • InterGlobe Aviation anticipates aircraft on the ground in the mid-thirties in Q4 due to accelerated engine removals. It reconfirmed capacity guidance for Q3, along with FY24 guidance for the upper range of mid-teens. Alert: Earlier this year, Pratt & Whitney highlighted the impact of the powder metal issue that has affected its new generation GTF aircraft engine.


Nifty Overview & Outlook

The benchmark Nifty index ended on a flat note at 19406 levels, after a highly volatile trading session.

The broader markets outperformed the benchmark as Small cap & Mid cap index rose 0.75% and 0.20% respectively against flat closing of the frontline index.

Majority of the sectoral indices settled higher. Amongst them, Nifty Healthcare & Pharma index were at the top of the tally, gained nearly 1% each. On the other hand, Nifty Realty and Media index led the declines, fell over 1% and 0.5% respectively.

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


Derivatives Overview & Outlook

Yesterday, on price front, no major change was seen in all three indices but on OI front long unwinding was seen in Nifty futures with decrease in open interest by 0.3%, whereas short covering was seen in Banknifty and Finnifty futures with decrease in open interest by 1% and 5% respectively.

On sectoral front, long buildup was seen in Oil & Gas, Telecom and Textile stocks whereas short buildup was seen in Automobile and Chemical stocks. Short covering was seen in Pharma stocks and long unwinding was seen in Media and Reality 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 497 Cr in the cash segment, bought stocks futures and index futures worth Rs 940 Cr and Rs 125 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 700 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19560-19630; Supports 19310-19210

Banknifty – Resistances 44250-44500; Supports 43400-43150

Finnifty – Resistances 19750-19860; Supports 19450-19340






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