Daily Market Update- Equity 14 Feb 2023 | Globe Capital Market LTD.
14-Feb-2023
Daily Market Update- Equity 14 Feb 2023

Benchmark Nifty index settled lower at 17770 levels, down 85 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up by over 1%.
  • European equity markets settled higher in range 0.58 to 1.09%
  • Asian markets are trading in green
  • SGX Nifty is little changed (as on 8:15 AM)

 

News highlights from across the globe

  • Asian markets are set to advance, following a rally on Wall Street as traders position for the U.S. inflation data later in the day.
  • The Consumer Price Index inflation was at 6.52% in January 2023, compared to 5.72% in December 2022, according to data released by the Ministry of Statistics and Programme Implementation.
  • The yield on 10-year Treasuries declined to 3.71%. Crude prices were trading at $86-mark.

 

Important news updates from the domestic front

  • SBI, Adani group stocks:SBI on Monday said the fresh pledge of shares of three Adani Group companies was on account of the requirement to top-up the collateral for its coal mine project in Australia. The lender also clarified that it has not issued fresh loans to the group for the pledged shares.
  • Spice Jet: In the share dispute case between SpiceJet CMD Ajay Singh and ex-promoter Kalanithi Maran, the Supreme Court on Monday directed the low-cost airline to invoke a bank guarantee of Rs 270 crore to pay Maran towards the dues from the arbitral award of Rs 572 crore.
  • Shree Renuka Sugars: The Company commenced commissioning activities of its expanded ethanol production capacity at Athani (from 300 KLPD to 450 KLPD) and at Munoli (from 120 KLPD to 500 KLPD).
  • Maruti Suzuki India/ South Indian Bank: The automobile major has signed an MoU with the bank to offer dealer finance options and customised auto retail financing solutions for customers.
  • Heidelberg Cement India: The board approved the appointment of Joydeep Mukherjee as managing director of the company for a term of three years, effective April 1, 2023.

 

Nifty Outlook

Benchmark Nifty index settled lower at 17770 levels, down 85 points from its previous closing values.

Broader markets underperformed the benchmark as Mid & Small cap index settled down 1.62% and 1.15% respectively. Market breadth was heavily tilted towards the declining side as 1631 declines were recorded against 667 advances at NSE.

All sectoral indices, tracked at NSE, settled in red. Amongst them, Nifty PSU Bank and Media index were the worst performers, down 2.52% & 2.45% respectively, followed by Nifty IT and Realty that were down over 1.50%.

We reiterate our sideways view on Nifty index till it is trading in 17600-17900 congestion range. Either side break from this range on closing basis will start the next directional move in that direction.

 

Derivatives Overview & Outlook

Yesterday, both Nifty and Banknifty futures added around 4% and 8.5% of open interest respectively as short buildup.

All F&O sectors settled lower. Amongst them, Banking, IT and Textile stocks witnessed maximum addition of short positions.

On options front, call writing was seen at multiple strikes and maximum positions are at 17800 PE and 18000 CE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 1322 Cr in the cash segment, sold stocks futures worth Rs 1312 Cr and bought index futures worth Rs 89 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 522 Cr.

 

Important Results Today

Adani Enterprises, Apollo Hospitals Enterprise, Arvind Fashions, Aster DM Healthcare, Bata India, Bharat Forge, Biocon, Bosch, CESC, DB Realty, Eicher Motors, EID-Parry (India), Eureka Forbes, Gujarat Mineral Development Corporation, GMR Airports Infrastructure, Grasim Industries, Harsha Engineers International, HEG, Indiabulls Housing Finance, Ipca Laboratories, Jindal Poly Films, Jupiter Wagons,

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE 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. 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. Globe Comex International DMCC is step down subsidiary 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.

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.