Oil holds biggest gain in six months on Middle East tensions- Daily Market Update- Equity 10 Oct 2023 | Globe Capital Market LTD.
Oil holds biggest gain in six months on Middle East tensions- Daily Market Update- Equity 10 Oct 2023

Oil steadied after its biggest jump in six months as Israel said its retaliation for attacks by militant group Hamas over the weekend had “only started,” increasing the prospect of fresh instability in the Middle East.  West Texas Intermediate traded near $86 a barrel after surging 4.3% on Monday, as markets reacted to fighting that started Saturday and reignited a conflict with broad repercussions across the region. Israel has announced its largest-ever mobilization of more than 300,000 army reservists as it attacked Gaza from the air and sea, with Prime Minister Benjamin Netanyahu vowing to “change the Middle East.” Hamas threatened to execute hostages.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.39% to 0.59%
  • European markets ended on negative note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is little changed (as on 8:30AM), Nifty futures likely to open around 19610 levels.


News highlights from across the globe

  • Asian shares opened higher following the lead from Wall Street after dovish comments on rates from Federal Reserve officials. Oil and gold climbed on the fallout from Hamas’ attack on Israel.
  • On Monday, energy companies led gains in the S&P 500 as U.S. crude futures briefly topped $87 a barrel. Exxon Mobil Corp and Chevron Corp added over 2.7%. Defense companies rallied, with Northrop Grumman Corp up the most since March 2020 and Lockheed Martin Corp gaining 8.9%.
  • The yield on the 10-year U.S. bond was trading at 4.65%.


Important news updates from the domestic front

  • Adani Enterprises has condemned the Financial Times for its “Malicious Campaign to Tarnish its Global Reputation.” The company said in a statement that the Financial Times is deliberately recycling old allegations to support vested interests.
  • Tata Steel: Fitch upgraded the steelmaker to BBB- from BB+ with a ‘Stable’ outlook. The upgrade follows a reduction in uncertainty and financial risk from its U.K. operations.
  • Indian Oil has appointed Anuj Jain as the Director (Finance) as of Oct. 9, 2023. Consequently, Sanjay Kaushal has ceased to be the CFO of the company.
  • Dr Reddy’s Laboratories was named in an antitrust complaint filed in California court by Mayo Clinic and Lifepoint Corporate Services. It alleges improper restraining of competition and a shared monopoly in the sale of Revlimid.
  • IDFC First Bank will sell its office premises in BKC, Mumbai, to NSDL for Rs 198 crore.
  • Container Corporation of India Export-Import volumes rose 3.5% year on year to 9.7 lakh TEUs, and domestic volumes rose 26.13% to 2.61 lakh TEUs in the second quarter.
  • Mazagon Dock Shipbuilders has signed a Letter of Intent with a European client for the construction of six firm and four optional units of 7,500 DWT multi-purpose hybrid power vessels. The prices for the vessels would be decided after the signing of the contract.
  • Dilip Buildcon has received a LoA for an order worth Rs 396.9 crore from Water Resources Zone, Udaipur. The EPC turnkey order is expected to be completed within 44 months. The order includes the planning, design and construction of Dewas III and IV Dams in Tehsil-Gogunda Udaipur.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on downside, it kept on sliding throughout the day and settled near day’s lows at 19512 levels after a cut of nearly 150 points from its previous closing values.

Broader market underperformed the benchmark as Midcap & Small Cap index were down 1.11% & 1.78% respectively.

All the sectoral indices, barring Healthcare index, tracked at NSE settled in red. Amongst them, Nifty PSU Bank and Media index were the worst performers, down over 3% and 2% respectively followed by Nifty Consumer Durables, Metals, Financial Services and Bank index that settled down in range 1% to 1.50%.

Going ahead, we reiterate our negative view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 19650 levels and expect it to test 19300 levels in near term.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty futures with decrease in open interest by 0.5% whereas short buildup was seen in Banknifty and Finnifty futures with increase in open interest by 2.4% and 21.1% respectively.

On sectoral front short buildup was seen in Chemical, FMCG, Technology stocks, long unwinding was seen in Reality and Power stocks.

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


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 998 Cr in the cash segment, sold stocks futures and index futures worth Rs 547 Cr and Rs 290 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 2661 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19665-19760; Supports 19470-19350

Banknifty – Resistances 44440-44650; Supports 43850-43600

Finnifty – Resistances 19850-19970; Supports 19530-19400




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