Daily Market Update- Equity 11 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 11 Aug 2023

The benchmark Nifty index witnessed a volatile trading session as RBI kept the repo rate unchanged at 6.50%, ended the session on a negative note at 19543 levels, down 89 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended on a flat to positive note
  • European equity markets settled higher in range 0.41% to 1.50%
  • Asian equity markets are trading on a mix note
  • GIFT Nifty is little changed (as on 8:40AM)


News highlights from across the globe

  • Asian stocks were headed for a mixed open amid bets that Federal Reserve policy will remain tight to prevent a flare-up in inflation despite signs that price increases are easing.
  • US equity futures edged higher after the S&P 500 index pared a gain of as much as 1.3% to close little changed on Thursday.
  • Brent crude was trading at $86.42 a barrel and the yield on the 10-year U.S. bond was trading at 4.11%

Important news updates from the domestic front

  • HCL Tech won a $2.1 billion contract from Verizon Communications to manage the networks for the business customers of the U.S.’ biggest telecom operator by subscribers. The deal, with a total contract value of $2.1 billion over the next six years, will see Verizon Business lead sales and development, while HCLTech will take care of post-sale network rollout and support.
  • Adani Enterprises said no such event concerning the media report on the exiting Wilmar venture requires any disclosure.
  • NBCC India awarded an order for the redevelopment of GPRA Colony at Sarojini Nagar, New Delhi, to Varindera Constructions for a total contract value of Rs 955.8 crore.
  • DLF, Medanta entered into a 50:50 joint venture in a special purpose vehicle to set up a 400-bed multi-specialty hospital in Delhi.
  • SJVN subsidiary SJVN Green Energy has bagged the 90 MW floating solar project at the Omkareshwar reservoir, Madhya Pradesh. The project cost is Rs 610 crore. It also signed an MoU with ONGC for joint development of renewable energy projects and with Sambhar Salts for the development of a solar project/park in phases.
  • Zee Entertainment Enterprises unit, Zee Studios, entered into a share purchase agreement with Elitecast Media to sell Zee Unimedi for Rs 2.4 crore.


Nifty Overview & Outlook

The benchmark Nifty index witnessed a volatile trading session as RBI kept the repo rate unchanged at 6.50%, ended the session on a negative note at 19543 levels, down 89 points from its previous closing values.

Midcap cap index outperformed the broader market as its ended on a flat to positive note while small-cap index performed in line with the benchmark. Resultant poor market breadth as 0.78 advances were recorded for every declining share at NSE.

Majority of sectoral indices tracked at NSE settled lower. Amongst them, Nifty Media index was at the top of the tally rallied over 6% followed by Nifty Metal index that was up by 0.68%. On the other hand, Nifty Bank, FMCG, Healthcare, Pharma and PSU Bank indices ended lower in range 0.72% to 0.91%.

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, long unwinding was seen in nifty future with decrease in open interest by 0.4%. Fresh short buildup was seen in banknifty future and finnifty future with increase in open interest by 9.9% and 6.5% respectively.

On the sectoral front, fresh long buildup was seen in media stocks. Fresh short buildup was seen in all major sector like banking, capital good, FMCG, metal, oil & gas, power and telecom shares. Long unwinding was seen in automobile, chemical, pharma and technology shares.

On options front, call writing was seen at multiple strikes and maximum positions are at 19500 PE and 19600 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 331 Cr in the cash segment, sold stocks futures and index futures worth Rs. 5066 Cr and Rs 1162 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 704 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19710-19770; Supports 19510-19440

Banknifty – Resistances 45150-45300; Supports 44520-44300

Finnifty – Resistances 20130-20200; Supports 19830-19740





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