US stocks jumps after inflation falls to 3.2% - Daily Market Update - Equity 15 Nov 2023 | Globe Capital Market LTD.
US stocks jumps after inflation falls to 3.2% – Daily Market Update – Equity 15 Nov 2023

Stocks rallied Tuesday, building on their strong November gains, as Wall Street cheered new U.S. inflation data that raised hopes of the Federal Reserve wrapping up its rate-hiking campaign.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 1.43% to 2.37%
  • European markets ended on positive note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is up nearly 250 points, Nifty futures likely to open around 19735 levels (as on 8:30AM).


News highlights from across the globe

  • Stocks in Asia rose after a surge on Wall Street as an unexpected inflation slowdown bolstered bets the Federal Reserve’s aggressive hiking cycle is over.
  • On Tuesday, the S&P 500 gained nearly 2% on Tuesday, the most since April. Tesla Inc. led gains in megacaps and Nvidia Corp. rallied for a 10th straight session.
  • Brent crude was trading at $82 a barrel and the yield on the 10-year US bond was trading at 4.44%.


Important news updates from the domestic front

  • Asian Paints original installed production capacity of the Khandala plant has been increased to 4,00,000 KL per annum from 3,00,000 KL per annum in order to meet the medium-term capacity requirements of the company for Rs 385 crore.
  • Wipro: Designit Tokyo Co., a step-down subsidiary of Wipro Limited, has been voluntarily liquidated with effect from Nov. 13, 2023. The revenue contribution from such units is 0.004% as of March 2023.
  • Adani Energy Solutions: The distribution arm of Adani Energy Solutions Ltd., Adani Electricity Mumbai Ltd., announced a tender offer to buyback up to $120 million of its outstanding 3.949% $1,000 million senior secured notes due 2030. The tender offer is being fully funded through its cash surplus and internal accruals.
  • RVNL received a Rs 311 crore LoA from Central Railways for the construction of tunnels and bridges in Madhya Pradesh. The time period by which the order is to be executed is 18 months.
  • PTC Industries and Safran Aircraft Engines, the French global leader in aero engine design, development, and manufacturing, announced a multi-year contract to develop industrial cooperation for LEAP engine casting parts. Under the terms of the contract, PTC Industries will produce titanium-casting parts for Safran aircraft engines.
  • Biocon Biologics, a subsidiary of Biocon, has announced that MHRA, the Medicines and Healthcare Products Regulatory Agency in the U.K., has granted marketing authorization for YESAFILI, a biosimilar of Aflibercept. In September, YESAFILI received marketing authorization approval from the European Commission for the European Union.
  • IDFC First Bank received a PFRDA nod for the merger of IDFC and IDFC Financial Holding Co. with IDFC First Bank. The company also received BSE and NSE’s nods for the merger of IDFC and IDFC Financial Holding Co. with itself.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the downside and settled at 19443 levels, down 82 points from its previous closing values.

Broader markets outperformed the benchmark as Small cap index was up over 0.5% while Midcap index settled on a flat note against a 0.42% decline of the frontline index.

All the sectoral indices, barring Nifty PSU Bank and Metal index, tracked at NSE settled in red. Amongst them, Nifty Consumer Durables, Financial Services and IT indices witnessed selling pressure, down in range 0.59% to 0.81%. On the other hand, PSU bank index soared over 2.50%.

Going ahead, we reiterate our short term positive view on Nifty index and suggest traders to maintain buy on dip trading strategy till it is trading above 19300 levels.


Derivatives Overview & Outlook

On Monday, no significant activity was seen in Nifty and Finnifty futures on price as well as on open interest front whereas some long unwinding was seen in Banknifty futures with decrease in open interest by 6.8%.

On sectoral front, long buildup was seen in Metals, Power and Capital Goods stocks whereas short Buildup was seen in Chemical and Textile stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 19400 PE and 19500 CE.


Institutional Trading Activity

On Monday, FIIs sold stocks worth Rs 1244 Cr in the cash segment, sold stocks futures worth Rs 98 Cr and bought index futures worth Rs 616 Cr. DIIs were net buyer in the cash segment to the tune of Rs 830 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19600-19700; Supports 19410-19300

Banknifty – Resistances 44370-44650; Supports 43600-43360

Finnifty – Resistances 19780-19870; Supports 19450-19350




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