Xi Jinping Planning To Skip G-20 Summit While China-India Tensions Mount: Daily Market Update- Equity 1 Sep 2023 | Globe Capital Market LTD.
Xi Jinping Planning To Skip G-20 Summit While China-India Tensions Mount: Daily Market Update- Equity 1 Sep 2023

Chinese President Xi Jinping is planning to skip next week’s Group of 20 summit in New Delhi, according to officials familiar with preparations for the meeting, a snub that’s likely to aggravate an already rocky relationship with India.

Overview and Outlook

Global Market Update

  • Barring Nasdaq, other US equity markets settled on negative note
  • European equity markets ended mixed
  • Asian equity markets are trading on a positive note
  • GIFT Nifty is down by 39 points (as on 8:30AM), Nifty futures likely to open around 19424 levels.


News highlights from across the globe

  • Stocks in Asia were mixed after a muted session on Wall Street as traders await Friday’s jobs reading to gauge the outlook for Federal Reserve policy.
  • Shares declined in Australia while those for Japan edged higher. Earlier data showed that Japanese businesses cut their spending for the first time in five quarters, an outcome that may prompt a downward revision to second-quarter economic growth data.
  • Brent crude was trading above $86 a barrel and the yield on the 10-year U.S. bond was trading at 4.11%


Important news updates from the domestic front

  • Reliance Industries‘s media unit Viacom 18 bagged both TV and digital rights of the Indian cricket team’s home series for the next five years with a cumulative bid of approximately Rs 6,000 crore, beating Star India and Sony in a three-way battle. The rights will come into effect with India’s three-match home series against Australia beginning Sept. 22 and ending March 31, 2028.
  • Jio Financial Services will be removed from S&P BSE indices before trading starts on Sept. 1.
  • Punjab National Bank has raised lending rates by 5 bps across tenures, effective Sept. 1.
  • Nykaa invested Rs 3.97 crore in its international arm, FSN International, by acquiring 39.78 lakh shares of Rs 10 each on a rights basis for providing long-term funds.
  • Aditya Birla Fashion and Retail said that it has completed the acquisition of a 29% stake in TCNS Clothing pursuant to the open offer. It also plans to raise Rs 750 crore on or after Sept. 4 through bonds on a private placement basis.
  • Auto Stocks to be in focus as auto makers announce the wholesale figures for the month of August.
  • Shakti Pumps received an order from the Haryana Renewable Energy Department for the supply, installation, and commissioning of solar water pumping systems. The order will be executed within a 120-day period from the date of issue of the work order.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side but failed to sustain at higher levels and settled at 19253 levels, down 93 points from its previous closing values after highly volatile trading session on scheduled monthly derivatives expiry.

Broader market outperformed the benchmark as Small cap index was up by 0.81% while Midcap index ended on a flat to negative note against 0.5% decline of frontline index.

Majority of sectoral indices tracked at NSE settled in red. Amongst them, Nifty PSU Bank and Oil & Gas index led the declines, down over 1% each followed by FMCG and Nifty Bank index that settled lower, down 0.82% and 0.55% respectively. On the other hand Consumer Durables and Realty Index witnessed some buying interest, settled higher up by 0.83% and 0.65% respectively.

Technically, Nifty index is still trading in the same range i.e. 19250-19650 levels. Going ahead, we reiterate our short term sideways view on Nifty index till it is trading in 19250-19500 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty futures with decrease in open interest by 20% while fresh short buildup was seen in Banknifty and Finnifty futures with an increase in open interest by 6.7% and 17.2% respectively.

Nifty and Banknifty futures rolled 77% of open interest each into next contract.

On options front, Nifty will start the new weekly contract with maximum positions at 19250 PE and 19300 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2973 Cr in the cash segment, sold stocks futures and index future worth Rs 4719 Cr and Rs. 2490 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 4383 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19460-19540; Supports 19230-19170

Banknifty – Resistances 44600-44800; Supports 43900-43700

Finnifty – Resistances 19900-20000; Supports 19600-19490


F&O stocks in ban today: NIL



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