Daily Market Update- Equity 10 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 10 Aug 2023

The benchmark Nifty index witnessed an early downtrend but managed to recover from its day low to end the day on a higher note above 19600 levels after adding 61 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended on negative note, down in range 0.54% to 1.17%
  • European equity markets ended on a positive note
  • Asian markets are trading negative
  • GIFT Nifty is trading down by 25 points (as on 8:35AM)


News highlights from across the globe

  • Asian equity futures traded moderately lower following a tech-led sell-off on Wall Street as investors await U.S. monthly inflation data that will help shape the outlook for the Federal Reserve’s next steps. U.S. futures ticked higher in early Asian trading.
  • The S&P 500 fell 0.7% Wednesday, while the Nasdaq 100 dropped 1.1%, weighed down by a 4.7% decline for Nvidia Corp.
  • Brent crude was trading around $87 a barrel and the yield on the 10-year U.S. bond was trading at 4%


Important news updates from the domestic front

  • Axis Bank board has approved the proposal to infuse Rs 1,612 crore in Max Life through preferential allotment. The bank’s direct stake in Max Life will increase to 16.22% and the collective stake of Axis Entities will increase to 19.02%. The bank will acquire 14.25 crore shares of face value of Rs 10 each and market value of Rs 113.06 apiece.
  • Bombay Dyeing board approved termination of deposit agreement and delisting of GDR from Luxembourg Stock Exchange.
  • Zee Entertainment: NCLT to pronounce its verdict today on the Zee-Sony merger. The tribunal had on July 10 reserved its order on the merger.
  • Suzlon Energy set the floor price at Rs 18.44 apiece for Qualified Institutional Placement that opened on Aug. 9. It aims to raise Rs 1,500 crore with a green shoe option of Rs 500 crore.
  • Angel One board approved the Scheme of Arrangement involving transfer of business undertaking to two subsidiaries—Angel Securities and Angel Crest. No cash consideration is payable for slump sale.


Nifty Overview & Outlook

The benchmark Nifty index witnessed an early downtrend but managed to recover from its day low to end the day on a higher note above 19600 levels after adding 61 points to its previous closing values.

Broader market outperformed the benchmark as Small cap & midcap index was up by 0.59% & 0.49% respectively; resultant, flat market breadth.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Nifty Media & Metal index was at the top of the tally rallied over 2% followed by Oil & Gas and Auto index that were up 1% each. On the other hand, Nifty Realty was the worst performer, down over 1%.

Nifty index is well placed on multiple chart frames and snapped two days losing streak to end higher. Going ahead, we reiterate our short term sideways view on Nifty index till it is trading in 19300-19800 range. Either side break from this range will open the doors for next directional move in that direction.


Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty futures with decrease in open interest by 0.2%. Long unwinding was seen in Banknifty and Finnifty futures with decrease in open interest by 4% and 1.7% respectively.

On the sectoral front, long buildup was seen in Capital Goods, Media, Metals, Oil & Gas stocks. Fresh some short buildup was seen in Banking, FMCG, Realty and Telecom shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 19500 PE and 19800 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 644 Cr in the cash segment, sold stocks futures and index futures worth Rs. 1980 Cr and Rs 323 Cr respectively. DIIs were net sellers in the cash segment to the tune of Rs 598 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19750-19830; Supports 19500-19430

Banknifty – Resistances 45270-45440; Supports 44660-44470

Finnifty – Resistances 20215-20300; Supports 19950-19880





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