Daily Market Update- Equity 16 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 16 Aug 2023

The benchmark Nifty index witnessed an early downtrend but managed to recover from its day low and settled on a positive note above 19400 levels with marginal gains of 6 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range of 1.02% to 1.14%
  • European equity market also settled lower in range 0.87% to 1.59%
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is down by 85 points (as on 8:20AM)


News highlights from across the globe

  • Asian stock markets are poised to open lower following declines across the board in the U.S. as inflation and growth concerns sapped risk sentiment.
  • Stocks fell on the Wall Street on Tuesdat after retail sales came in above forecasts, bolstering the case for the Federal Reserve to raise interest rates higher for longer. The S&P 500, tech-heavy Nasdaq 100 and the blue-chip Dow Jones Industrial Average ended just off session lows.
  • Financials weighed on the broader benchmark after a warning from Fitch Ratings that the firm may downgrade larger lenders like JPMorgan Chase & Co. or Bank of America Corp.
  • Brent crude was trading below $85 a barrel and the yield on the 10-year U.S. bond was trading at 4.21%


Important news updates from the domestic front

  • ITC shareholders will get one share in ITC Hotels for 10 shares held in the parent company. The indicative timeline for listing of ITC Hotels is approximately 15 months. The hotels business will be given a license to use the ‘ITC’ brand. The board has approved the acquisition of 25% stake in Maharaja Heritage from Russel Credit and 45.36% stake in International Travel House.
  • Hero MotoCorp received the family settlement deal from promoter group under which Sunil Kant Munjal has resigned as Joint Managing Director and will exit the company. The management and control will vest with the family group comprising of Santosh Munjal, Renu Munjal, Suman Kant Munjal and Pawan Munjal. An understanding has been reached between family and Sunil Munjal on usage of trad
  • Ashok Leyland will acquire OHM Global Mobility (OHM India) from OHM International Mobility under share purchase agreement. It will infuse fresh equity or preference capital of up to Rs 300 crore in one or more tranches for its business requirements.
  • Reliance Industries: Jio completed minimum roll-out obligations of 5G ahead of schedule across all spectrum bands acquired in the 2022 auction. Jio customers now using 26 GHz millimetre wave-based connectivity across all 22 telecom circles.
  • Zee Entertainment: The markets regulator SEBI passed a confirmatory order barring Chairman Emeritus Subash Chandra and former Managing Director Punit Goenka from company boards over allegations of diversion of the company’s funds.
  • Suzlon Energy has raised Rs 2,000 crore via QIP and allotted 113.96 crore shares at Rs 17.55 apiece, representing a discount of 4.83% to the floor price. More than 5% of equity shares offered were allotted to BNP Paribas, Bandhan Mutual Fund, HDFC Mutual Fund, Invesco Mutual Fund, Max Life Insurance. Goldman Sachs and ICICI Prudential.


Nifty Overview & Outlook

The benchmark Nifty index witnessed an early downtrend but managed to recover from its day low and settled on a positive note above 19400 levels with marginal gains of 6 points to its previous closing values.

Small cap index underperformed the benchmark as its down by 0.73% while Midcap index performed in line with the benchmark.

Majority of sectoral indices tracked at NSE settled in red. Amongst them, Nifty Metal led the decline, down over 2% followed by PSU Bank and Reality index which fell over 0.50% each. On the other hand, Nifty FMCG, IT and Media indices settled lower in range 0.49% to 0.87%.

Going ahead, we reiterate our sideways view on Nifty index till it is trading below 19700 levels on a closing basis.


Derivatives Overview & Outlook

On Monday, no significant activity was seen in Nifty futures on price as well as on open interest front whereas long unwinding was seen in Banknifty futures and Finnifty futures with decrease in open interest by 4.9% and 4.7% respectively.

On the sectoral front, a short buildup was seen in Banking, Finance, Infrastructure and Metal stocks, long unwinding was seen in Automobiles, Cement, Power and Realty share whereas some short covering was seen in Media and Textile shares.

On the options front, put writing was seen at multiple strikes and maximum positions are at 19400 PE and 19600 CE.


Institutional Trading Activity

On Monday, FIIs sold stocks worth Rs 2324 Cr in the cash segment, sold stocks futures and index futures worth Rs. 1120 Cr and Rs 440 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 1461 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19510-19575; Supports 19300-19230

Banknifty – Resistances 44400-44620; Supports 43800-43600

Finnifty – Resistances 19800-19880; Supports 19600-19480





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