Powell says Fed to be careful, won’t hesitate to hike if needed - Daily Market Update - Equity 10 Nov 2023 | Globe Capital Market LTD.
Powell says Fed to be careful, won’t hesitate to hike if needed – Daily Market Update – Equity 10 Nov 2023

Federal Reserve Chair Jerome Powell said the US central bank will continue to move carefully but won’t hesitate to tighten policy further if needed to contain inflation. “We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data, and the risk of over-tightening,” he said. Powell said policymakers are committed to ensuring interest rates are high enough to return inflation to their 2% target.”

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.66% to 0.94%
  • European markets ended on positive note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is trading down by 90 points, Nifty futures likely to open around 19386 levels (as on 8:30AM).


News highlights from across the globe

  • Shares in Asia opened lower after Jerome Powell warned interest rates may have to climb further, stunting a rally in stocks and bonds and sending investors back to the dollar.
  • The U.S. benchmark slipped 0.8%, ending eight days of gains — it’s best run since 2021. The Nasdaq 100 fell by the same margin, and contracts for the two U.S. indexes edged lower early Friday.
  • Brent crude was trading at $80 a barrel and the yield on the 10-year US bond was trading at 4.64%.


Important news updates from the domestic front

  • Tata Motors: Moody’s Investors Service upgraded the company’s rating from B1 to Ba3. Moody’s also upgraded the company’s senior unsecured instrument ratings from B1 to Ba3 and has maintained a positive outlook on all ratings.
  • Tata Steel Long Products: Trading of company shares on NSE to be suspended w.e.f. Nov. 17 on account of Tata Steel merger
  • Zee Entertainment Enterprises has not commented on speculations about Puneet Goenka’s role in merged company being under contention. The company recognises the value of the merger with Sony India and is committed to ensuring all parts of the scheme are addressed.
  • Hindustan Aeronautics inked a contract with Airbus for establishing a civil MRO facility for A-320 aircraft at Nashik.
  • Garden Reach Shipbuilders & Engineers received a letter of intent from NCPOR for the award of a contract towards the construction and delivery of an ocean research vessel. The total contract value is approximately Rs 840 crore.
  • Infosys will collaborate with U.S.-based Better Home & Finance to offer mortgages as a service. The companies will offer an AI-driven mortgage white-label platform for banks and credit unions.
  • Mphasis unit, Blink UX, will update NASA’s digital platforms.


Nifty Overview & Outlook

Benchmark Nifty index settled marginally lower at 19395 levels, down 48 points from its previous closing values after a lackluster trading session.

Broader markets ended on a mix note as Mid Cap index gained nearly 0.50% while Small Cap index performed inline with the benchmark as it was down, 0.25%.

Performance on the sectoral front was also mix. Amongst them, Nifty Realty and Nifty Auto index were the top performers, rose 1.23% and 0.86% respectively. On the other hand, Nifty FMCG and IT index led the declines, down 0.90% and 0.65% respectively.

Technically, Nifty index is facing resistance around 19450-19500 levels and there is a possibility of some more consolidation or minor weakness in the near short term. The immediate support for Nifty is placed around 19200 – 19250 levels.


Derivatives Overview & Outlook

Yesterday, no major change was seen in all three major index futures on price front whereas Nifty futures open interest increase by 3.2% as short buildup, Banknifty futures open interest increase by 2.3% as long buildup and Finnifty futures open interest decrease by 4.2% as short covering.

On sectoral front, long buildup was seen in Pharma stocks whereas short buildup was seen in Cements, Power  and Metals stocks. Short covering was seen in Realty stocks and long unwinding was seen in Textile stocks.

On options front, Nifty will start the new weekly contract with maximum positions at call writing was seen at multiple strikes and maximum positions are at 19400 PE and 19500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1712 Cr in the cash segment, sold stocks futures and index futures worth Rs 976 Cr and Rs 15 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1512 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19600-19700; Supports 19330-19250

Banknifty – Resistances 44270-44500; Supports 43450-43270

Finnifty – Resistances 19750-19860; Supports 19430-19320






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