Oil jumps as Hamas’ attack on Israel fans middle east tensions - Daily Market Update- Equity 09 Oct 2023 | Globe Capital Market LTD.
Oil jumps as Hamas’ attack on Israel fans middle east tensions – Daily Market Update- Equity 09 Oct 2023

Oil surged as much as 5% after the broadest and bloodiest attack on Israel in decades threatened to inflame tensions in the Middle East, the source of around a third of the world’s crude. West Texas Intermediate traded near $86 a barrel as a war-risk premium returned to markets. The death toll on both sides following Hamas’ strikes against Israel over the weekend topped 1,100 as fighting headed into a third day, while the US said it was sending warships to the region.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.87% to 1.60%
  • European markets ended on positive note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is trading down by 130 point (as on 8:30AM), Nifty futures likely to open around 19640 levels.


News highlights from across the globe

  • Oil soared more than 4% as traders reacted to attacks by Hamas within Israel over the weekend that left hundreds dead.
  • The S&P 500 had advanced 1.2% on Friday, snapping a four-week losing streak. The Nasdaq 100 jumped 1.7% with large-cap tech names, including Microsoft Corp, Apple Inc and Nvidia Corp, powering the index higher.
  • The yield on the 10-year U.S. bond was trading at 4.80%.


Important news updates from the domestic front

  • TCS announced plans to consider the buyback of shares at the Oct. 11 board meeting.
  • Titan Company reported a 20% y-o-y increase in its standalone revenue, and its emerging businesses saw sales growth of 29% y-o-y, while the watches and wearable saw sales growth of 32% year over year, the jewellery division saw sales growth of 19% year over year.
  • Bank of Baroda reported a domestic CASA of Rs 4.28 lakh crore, up 4.43% year over year. Global gross advances and total deposits rose 12.01% and 14.63% year over year, respectively.
  • Adani Energy Solutions acquired a 100% stake in Sangod Transmission Service via cash at a face value of Rs 10 apiece.
  • TVS Motor on Friday started production in the Tamil Nadu manufacturing plant for CE 02, the company’s first electric vehicle that is jointly designed and developed with BMW Motorrad.
  • Biocon inked a pact with Canada’s Juno Pharmaceuticals for commercialising diabetes and obesity-managing devices.


Nifty Overview & Outlook

The benchmark Nifty index extended gains for the second consecutive trading sessions and settled at 19653 levels after adding over 100 points to its previous closing values.

Broader markets outperform the benchmark as Midcap & Small cap index was up 0.78% and 0.80% respectively against 0.55% advance of frontline index.

All the sectoral indices, barring Media index, tracked at NSE settled in green. Amongst them, Nifty Realty index was at the top of the tally, gained over 3% followed by Nifty Consumer Durable, Financial Services and Pharma index that were up over 0.5% each.

Going ahead, we reiterate our short term negative view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 19700 levels, on the down side, support is placed around 19200 levels.


Derivatives Overview & Outlook

Last Friday, short covering was seen in Nifty futures and Banknifty futures with decrease in open interest by 3.5% and 1.3% respectively. Long buildup was seen in Finnifty futures with increase in open interest by over 3%.

On sectoral front, long buildup was seen in majority of sectors led by Finance, Metals, FMCG and Reality index. Some shorts were also seen in Telecom stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19500 PE and 20000 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 10087 Cr in the cash segment, sold stocks futures and index future worth Rs 4719 Cr and Rs 2172 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 7187 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19740-19830; Supports 19540-19470

Banknifty – Resistances 44780-45000; Supports 44100-43900

Finnifty – Resistances 20050-20140; Supports 19780-19680




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