CPI inflation at Four-Month high due to food price increase: Daily Market Update Equity 15 Jan 2024 | Globe Capital Market LTD.
CPI inflation at Four-Month high due to food price increase: Daily Market Update Equity 15 Jan 2024

Consumer price index inflation rose to four-month high of 5.69% (slightly lower than our expectations of 5.98%) due to increase in food price inflation. Inflation in all the other components increased at a lower rate when compared to the previous month.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat note.
  • European equity markets ended lower in range 0.6% to 1%.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is up by 82 points, Nifty futures are likely to open around 22057 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading higher on Monday as investors await for the People’s Bank of China to take call on its medium-term lending facility.
  • China’s central bank is largely expected to cut MLF rate by 10 basis points to further liquidate monetary conditions in the economy, Bloomberg reported.
  • U.S. Treasury two-year yields dropped to the lowest level since May while stocks came under pressure as a surprise decline in producer prices reinforced bets on Federal Reserve rate cuts this year.


Important news updates from the domestic front

  • Tata Consumer Products has agreed to buy Capital Foods Pvt, the owner of Ching’s Secret and Smith & Jones, and Fabindia-backed Organic India in two separate deals valued at about Rs 7,000 crore as it expands its portfolio of high-margin businesses. The board will meet on Jan. 19 to consider fundraising via equity or debt issues.
  • Adani Enterprises: Unit Adani New Industries received the Letter of Award to set up a manufacturing capacity of 198.5 megawatts per annum for electrolyzers under the Strategic Interventions for Green Hydrogen Transition scheme from Solar Energy Corp.
  • Bharat Heavy Electricals, NLC India: BHEL received a letter of award worth Rs 15,000 crore for an EPC package for the 3×800 MW Talabira thermal power project from NLC India.
  • Life Insurance Corp received a tax demand worth Rs 1,370.6 crore from the Mumbai tax authority.
  • Avalon Technologies entered into an agreement with the Centre for Development of Advanced Computing for indigenously manufactured HPC servers, ‘RUDRA’.
  • Century Plyboards’s newly set-up laminate unit started its commercial production on Jan. 12.
  • All Cargo Gati total monthly volume, including surface and air express, stood at 105 kilo tonne, up 7% YoY.
  • Kaynes Technology will acquire Mixx Technologies for a consideration of $30 million to establish itself as a “silicon to systems” manufacturer for artificial intelligence and high-performance computing infrastructure. Post-acquisition, it will hold a 13.20% stake in Mixx Technologies.
  • Alkem Laboratories appointed Nitin Agrawal as the Chief Financial Officer w.e.f. Feb. 1. A cyber security incident happened at the company’s subsidiary, which compromised the business email IDs of certain employees. The incident resulted in a fraudulent transfer of funds of approximately Rs 52 crore.


Nifty Overview & Outlook

Benchmark Nifty index settled at new all time highs i.e. 21894 levels after adding 247 points to its previous closing values.

Nifty index outperformed the broader markets as it ended higher by 1% while Midcap & Small index was up 0.62% and 0.44% respectively.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Oil & Gas index was at the top of the tally, soared over 5% followed by Nifty PSU Bank and Realty index that rose nearly 3% and 2% respectively. On the other hand, Nifty Media and Healthcare Index were down 0.65% and 0.47% respectively.

Technically, Nifty index has given fresh breakout from its important resistance levels i.e. 21800 levels (as mentioned in the previous post) and decisively closed above the same. Going ahead, we expect it to test 22250 levels in immediate near term.


Derivatives Overview & Outlook

Last Friday, long buildup was seen in Nifty futures and Finnifty futures with increase in open interest by 4.2% and 6.7% respectively, whereas short short covering was seen in Banknifty futures with decrease in open interest by 10.2%.

On the sectoral front, long buildup observed in Technology and Textile stocks, whereas short buildup was seen in Pharma and Chemicals stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 21700 PE and 22500 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 3901 Cr in the cash segment, sold stocks futures and index future worth Rs 624 Cr and Rs. 486 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 6858 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22020-22100; Supports 21770-21700

Banknifty – Resistances 48200-48500; Supports 47300-47000

Finnifty – Resistances 21550-21670; Supports 21220-21080



Important Results Today – ANGLEONE, JIOFIN, NELCO, PCBL, RIIL


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