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

The benchmark Nifty index settled lower at 18534 levels, down 100 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.41 to 0.63%
  • European equity markets also ended lower in range 1 to 1.56%
  • Asian equity markets are trading mix
  • SGX Nifty is down by 50 points (as on 8:25AM)


News highlights from across the globe

  • Asian Equity markets are trading mix after Wall Street closed lower as investors looked beyond the debt ceiling to instead focus on the path for interest rates and concern in earnings reports.
  • Comments from Federal Reserve Governor Philip Jefferson signaled the central bank is inclined to keep interest rates steady in June to assess the economic outlook.
  • The yield on 10-year treasuries in the U.S. was trading at 3.63%. Crude declined nearly 1% below $73-mark


Important news updates from the domestic front

  • Coal India: The government will sell up to 18.48 crore shares of the company, representing a 3% stake, via an offer for sale on June 1 and 2. The floor price of the offer has been pegged at Rs 225 per share.
  • MOIL increased prices of manganese ore grades BGF452, CHF473 and GMF569 by 10%, effective from June 1.
  • Tata Motors is looking to buy back external commercial bonds worth $250 million from bondholders.
  • HFCL will spend Rs 470 crore to expand its current optical fiber capacity to 33.9 million fiber kilometers per annum from 10 million fiber kilometers per annum at its manufacturing facility in Telangana.
  • Bank of India: The bank hiked the marginal cost of funds-based lending rates by five basis points across tenures, effective June 1.
  • Laurus Labs will acquire an additional 7.24% stake in Immunoadoptive Cell Therapy for Rs 80 crore. Some promoters and senior management of the company will also acquire a 0.54% stake in ImmunoACT for Rs 4 crore through secondary purchases. The company already holds a 26.62% stake in ImmunoACT.
  • Vinati Organics bought additional 65.97 lakh shares of subsidiary Veeral Organics for Rs 6.59 crore.


Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18534 levels, down 100 points from its previous closing values.

Broader markets outperformed the benchmark as Small cap and Mid cap index were up over 1% & 0.35% respectively against a 0.53% decline in a frontline index.

Performance on the sectoral front was mix. Amongst them, Realty, Consumer Durable and Healthcare index were the top performers, rose 0.75% each. On the other hand, Oil & Gas, Metals and Financial Service index led the declines, settled lower in range of 0.75% to 1.26%.

Going ahead, we reiterate our bullish view on the Nifty and suggest traders to maintain buy on dips trading strategy till it is holding above 18200 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 5% of open interest as long unwinding, Banknifty futures remained almost unchanged on open interest front and Finnifty futures added around 3% of open interest as short positions.

On sectoral front, long buildup was seen among Telecom, Capital Goods and Pharma stocks while some short buildup was seen among Metals stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18500 PE and 18600 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 3406 Cr in the cash segment, sold stocks futures worth Rs 2114 Cr and also sold index futures worth Rs 2027 Cr. DIIs were net sellers in the cash segment to the tune of Rs 2529 Cr.


Nifty Futures, Banknifty Futures & Finnifty Futures Key Levels

Nifty – Resistances 18700-18750; Supports 18560-18480

Banknifty – Resistances 44425-44700; Supports 43980-43750

Finnifty – Resistances 19625-19700; Supports 19430-19350


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