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

The benchmark Nifty index erased its four days gains in a single day and ended sharply lower at 19332 levels, down over 150 points from its previous closing values after a volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.13% to 0.55%
  • Barring FTSE, other European equity markets settled on flat to positive note
  • Majority of Asian equity markets are trading in green
  • GIFT Nifty is down by 43 points (as on 8:35AM)


News highlights from across the globe

  • Asian markets are trading mix on the risk of higher interest rates and recession to a potential turning point for Chinese tech companies and constructive dialogue between Beijing and Washington.
  • Brent crude was above $78 a barrel and the yield on the 10-year U.S. bond was trading at 4.06%


Important news updates from the domestic front

  • Reliance Industries: The conglomerate will reduce equity share capital held by shareholders in Reliance Retail Ltd., other than its promoter and holding company, Reliance Retail Ventures. The shares held by such shareholders shall stand canceled and extinguished upon reduction. A consideration of Rs 1,362 per share will be paid towards the capital reduction.
  • Vedanta has acquired two units of Twin Star Technologies; Vedanta Foxconn Semiconductors and Vedanta Displays via share transfer thus adding semiconductors and display glass ventures to its portfolio. The share purchase price of Vedanta Displays is at a face value of Rs 5 lakh. The share purchase price of Vedanta Foxconn is at a face value of Rs 5 lakh and includes net operating liabilities of about Rs 4 crore.
  • Indian Oil Corporation has agreed to raise capital up to Rs 22,000 crore by issuing equity shares on the right basis. Separately, it inked a pact with Sun Mobility Singapore to form a 50:50 joint venture for battery swapping business. Indian Oil will invest Rs 1,800 crore in equity till fiscal 2026-27. It will also invest $78.31 million in unit IOCL Singapore for buying preference shares and warrants of Sun Mobility Singapore.
  • Samvardhana Motherson International has inked a contract to acquire a 100% stake in Rollon Hydraulics. The business will be housed under the company’s precision metals and modules division
  • Aurobindo Pharma: The company’s unit CuraTeQ Biologics has inked an exclusive licensing agreement with U.S.-based BioFactura Inc. to sell BFI-751 biosimilar. BFI-751 is a proposed biosimilar Ustekinumab, which is a recombinant monoclonal antibody, sold under the brand Stelera. It is used to treat Crohn’s disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis.
  • ITC: The conglomerate clarified on media report regarding the demerger of the hotels business. It said the company remains committed to implementing its ‘asset-right’ strategy with respect to the hotels business. It is committed to focusing on sweating existing assets, creating additional revenue streams, and pursuing alternate structures to enhance growth and value.


Nifty Overview & Outlook

The benchmark Nifty index erased its four days gains in a single day and ended sharply lower at 19332 levels, down over 150 points from its previous closing values after a volatile trading session.

Nifty Small cap index performed slightly better than the broader market as it was down just 0.44% while Mid cap index fell in line with the benchmark down nearly 1%; resultant, market breadth was weak.

Majority of sectoral indices tracked at NSE settled in red. Amongst them Media was at the top of the tally, jump nearly 4% followed by Nifty PSU Bank and Auto index that is up by nearly 1% and 0.29% respectively. On the other hand, Nifty FMCG, Pvt Bank, IT and Pharma indices led the decline, settled lower in range 0.72% to 1.53%.

Technically, Nifty closed on a weak note and made bearish doji type of candlestick on daily chart which indicates weakness in prices. Going ahead, our bullish view is intact on Nifty index and suggest to maintain buy on dip strategy till index is holding above 19000 levels on closing basis, immediate resistance for Nifty is placed around 19500-19520 levels.


Derivatives Overview & Outlook

On Friday, Nifty, Banknifty and Finnifty futures shed around 4.2%, 3.7% & 9% of open interest respectively as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Chemicals, Technology and Textile stocks witnessed maximum addition of short positions whereas some short covering was seen among Media stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 19400 PE and 19400 CE.


Institutional Trading Activity

Last Friday, FIIs bought stocks worth Rs 10884 Cr in the cash segment, sold stocks futures worth Rs 352 Cr and bought index futures worth Rs 1875 Cr. DIIs were net sellers in the cash segment to the tune of Rs 6878 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19490-19550; Supports 19240-19170

Banknifty – Resistances 45200-45310; Supports 44680-44540

Finnifty – Resistances 20200-20280; Supports 20020-19940


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