Daily Market Update- Equity 12 June 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 12 June 2023

The benchmark Nifty index settled lower at 18563 levels, down 71 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled on a flat to positive note
  • European equity markets were down in range by 0.12 to 0.49%
  • Asian equity markets are trading mix
  • SGX Nifty is trading up by 60 points(as on 8:30AM)


News highlights from across the globe

  • Asian Equity Markets are trading mix on Monday as traders braced for a week that brings interest rate decisions from the U.S. and Europe to China and Japan.
  • Technology shares have continued to climb amid bets the Federal Reserve is nearing the end of its hiking cycle. The European Central Bank is projected to lift its benchmark rate on Thursday.
  • Brent futures traded below $75 a barrel and the yield on the 10-year U.S. bond was trading at 3.74%


Important news updates from the domestic front

  • Cochin Shipyard won a contract by the Indian Navy for MR/Mid Life Upgrade of an Indian naval ship at an estimated contract value of Rs 300 crore. The estimated duration of the contract is around 24 months.
  • Gati, Allcargo Logistics completed the acquisition of a 30% stake in Gati-Kintetsu Express from KWE-Kintetsu World Express and KWE Kintetsu Express. Allcargo Logistics now holds a 30% stake and Gati holds the existing 70% stake in Gati-Kintetsu.
  • TVS Motor: Credit Services has successfully raised equity capital of ₹480 crores from Premji Invest. Premji Invest will buy additional equity shares for Rs 257 crore. After the completion of primary and secondary investments, Premji Invest will hold a 9.7% equity stake in TVS Credit.
  • Info Edge has agreed to sell its entire shareholding, held through unit Startup Investments (Holding) Ltd., in its associate company Happily Unmarried Marketing to VLCC Health Care for approximately Rs 61 crore through a mix of cash and share swap.
  • Karnataka Bank: Srikrishnan Hari Hara Sarma has formally assumed the responsibilities of managing director and the chief executive officer of the company.
  • Karur Vysya Bank: Lender revised the base rate to 11.20% from 10.75% and the benchmark prime lending rate to 16.20% from 15.75% with effect from Jun. 16.
  • Easy Trip Planners has become the official travel partner of the World Padel League 2023. The partnership will provide travel solutions to players, officials, and fans attending the game.
  • Power Finance Corporation’s unit PFC Consulting incorporated two special-purpose vehicles for the development of independent transmission projects.


Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18563 levels, down 71 points from its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were almost flat against 0.38% decline in frontline index.

Barring Nifty Realty and Pvt bank index, all the sectoral indices tracked at NSE settled in red. Amongst them, PSU Bank was the top loser, down over 1% followed by FMCG, Media and IT index that fell nearly 1% each.

Going ahead, we reiterate our bullish view on the Nifty and suggest traders to maintain buy on dips trading strategy till it is holding above 18200 levels on closing basis.


Derivatives Overview & Outlook

On Friday, no significant activity was seen among Nifty, Banknifty and Finnifty futures on price as well as on open interest front.

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

On options front, call writing was seen at 18700 strikes and maximum positions are at 18700 PE and 18700 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 2346 Cr in the cash segment, bought stocks futures worth Rs 1595 Cr and sold index futures worth Rs 428 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1940 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18700-18800; Supports 18580-18500

Banknifty – Resistances 44350-44550; Supports 43900-43600

Finnifty – Resistances 19540-19660; Supports 19400-19300


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.