Daily Market Update- Equity 1 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 1 Aug 2023

The benchmark Nifty index snapped two days losing streak and settled higher at 19753 levels, added over 100 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled on a flat to positive note.
  • European equity markets ended mixed.
  • Asian markets are trading positive.
  • GIFT Nifty is indicating a gap up opening for Nifty index, trading at 19882 (as on 8:35AM)


News highlights from across the globe

  • The S&P 500 edged higher to around 4,590 points, closing at a 16-month high. The Nasdaq 100 notched its longest streak of monthly gains since August 2020.
  • Japanese, Hong Kong and Australian futures pointed to gains in early trading Tuesday as concerns dissipated that equity markets could become overheated and company earnings may decline.
  • Brent crude was trading around $85 a barrel the yield on the 10-year U.S. bond was trading at 3.96%.


Important news updates from the domestic front

  • Maruti Suzuki approved to terminate contract manufacturing agreement with Suzuki Motor Gujarat Ltd. It exercised option to acquire shares of Suzuki Motor Gujarat from Suzuki Motor Corporation
  • South Indian Bank has agreed to raise funds via QIP, FPO and other methods. It will raise Rs 1000 crore via QIP, FPO, Rights Issue and other methods. It has also agreed to additionally raise Rs 500 crore via debt.
  • State Bank of India has raised Rs 10,000 crore via infrastructure bond issue at coupon rate of 7.54%.The tenor of these bonds is 15 years. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment.
  • InterGlobe Aviation: DGCA gave approval to Air India and IndiGo for importing aircraft.
  • Oberoi Realty approved the merger of Oberoi Constructions Ltd., Oberoi Mall Ltd., and Evenstar Hotels Pvt. Ltd. with Oberoi Realty. Incline Realty Pvt. Ltd will not be merged, as opposed to earlier, due to commercial reasons.
  • Coromandel International subsidiary Coromandel Technology has acquired 32.68% equity stake in Dhaksha Unmanned Systems, taking its total stake in the company to 51.02%.


Nifty Overview & Outlook

The benchmark Nifty index snapped two days losing streak and settled higher at 19753 levels, added over 100 points to its previous closing values.

Broader market outperformed the benchmark as Midcap & Small cap indices were up by 1.27% and 0.88% respectively. The market breadth was heavily inclined towards the advancing side as nearly 2 advances were recorded for every declining share at NSE.

All sectoral indices, barring Nifty FMCG & Healthcare index, tracked at NSE settled in green. Amongst them, Nifty IT and Metal index were at the top of the tally gained, 1.77% and 1.49% respectively followed by Nifty Auto and Oil & Gas index that were up over 1% each.

Going ahead, we reiterate our short term sideways to positive view on Nifty index and suggest traders to maintain buy on dips trading strategy till index is holding above 19500 levels on closing basis. Medium term and Long term trend are still positive.


Derivatives Overview & Outlook

Yesterday, all three main indices (Nifty futures, Banknifty futures and Finnifty futures) witnessed addition of long positions as they added 0.3%, 7.6% and 15.4% of open interest respectively.

Majority of F&O sectors settled higher. Amongst them, Textile, Realty, Oil & Gas, Infra and Cement stocks witnessed maximum addition of long positions whereas some short covering was seen in Chemicals, Power and Technology shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 19600 PE and 19800 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 701 Cr in the cash segment, sold stocks futures and index futures worth Rs. 613 Cr and Rs 730 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 2488 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19920-19980; Supports 19680-19605

Banknifty – Resistances 46050-46190; Supports 45530-45410

Finnifty – Resistances 20580-20650; Supports 20300-20220


F&O stocks in ban today: IBULHSGFIN, PEL




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