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

Nifty Index settled 241 points higher at 18101 levels after a volatile trading session where steep moves were witnessed on both sides.

Overview and Outlook

Global Market Update

  • US equity markets ended mix, Nasdaq was up 0.6% while Dow Jones ended on flat to negative note
  • European equity markets settled in green
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:15 AM)


News highlights from across the globe

  • Asian stocks were mixed on Tuesday after a US rally fizzled out as the Federal Reserve officials signaled that the central bank will likely need to raise interest rates above 5% before pausing and holding for some time.
  • U.S. stocks rallied on the first day of the week on speculation that the Federal Reserve going easy with rates hikes. The S&P 500 rose 1.1% by mid-day in New York, while the tech-heavy Nasdaq 100 was up 2.2%. However, the yield on 10-year Treasuries declined four basis points to 3.53%.


Important news updates from the domestic front

  • Tata Motors: Tata Motors Group global wholesales increased 13% on-year in the December quarter at 3.23 lakh units. Passenger vehicles sales were up 23% during the period at 2.25 lakh units. Meanwhile, Jaguar Land Rover wholesales, excluding China JV, rose 15% YoY to 79,591 units in December quarter, with a positive free cash flow of £400 million (Rs 4,003.15 crore).
  • LT Foods/Chaman Lal Setia Exports/Others: Authorities are planning to remove the ban imposed in September last year on export of certain varieties of rice as domestic prices stabilise, according to a Bloomberg report. This will be positive for stocks of rice exporting companies.
  • IRB Infrastructure Developers: The company reported a 32% YoY increase in consolidated Q3 toll revenue at Rs 388.01 crore.
  • Procter & Gamble Hygiene & Health Care: The board will meet on Feb. 8 to consider and approve financial results for the December quarter and interim dividend.
  • Sona BLW Precision Forgings: The company will acquire 54% stake in NOVELIC for €40.5 million (Rs 355.98 crore).


Nifty Outlook

Nifty Index settled 241 points higher at 18101 levels after a volatile trading session where steep moves were witnessed on both sides.

Broader markets underperformed benchmark, Mid cap index was up 0.8% while Small cap index gained 0.4% against 1.35% rise in the benchmark. Market breadth was slightly tilted towards the advancing side.

Barring Consumer Durable index, all sector gauges tracked at NSE settled in green, IT index gained maximum, up 2.83% followed by Auto, Metal, PSU Bank, Oil & Gas index as they were up by 1% each.

Nifty index posted steep recovery after three consecutive session of sell-off. Going ahead, crossover and sustenance above 18160 levels will open the gates for further up move till 18265/400 levels in the near term.


Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures shed around 1% & 8% of open interest respectively as short covering.

Majority of F&O sectors settled higher. Amongst them, Power, Chemicals and Auto stocks witnessed maximum addition of long positions whereas some short buildup was seen among Textile stocks.

On options front, put writing was seen at 18000 strikes and maximum positions are at 18000 PE and 18300 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 203 Cr in the cash segment, bought stocks futures worth Rs 1982 Cr and also bought index futures worth Rs 2179 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1724 Cr.


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