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

Benchmark Nifty index settled higher for the second consecutive trading session, closed shop at 18016 levels after adding 86 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled in green, up in range 0.11 to 0.92%
  • European equity markets gained 0.55 to 1.19%
  • Asian equity markets are also trading in green
  • SGX Nifty is trading up by 75 points (as on 8:20 AM)


News highlights from across the globe

  • Asian markets opened higher after the U.S. shares climbed and Treasuries sold off as investors weighed fresh data that indicated further Federal Reserve tightening ahead.
  • MSCI said it’ll postpone implementation of any update on Foreign Inclusion Factors of specific securities associated with the Adani Group to May 2023 Index Review.
  • The yield on 10-year Treasuries advanced to 3.81%. Crude prices were trading around $85-mark


Important news updates from the domestic front

  • Vedanta: The company was declared the preferred bidder for Sijimali Bauxite Block, located in Rayagada and Kalahandi districts of Odisha, under the mineral block auction conducted by the Odisha government. The block has estimated reserves of 311 million tonnes of bauxite.
  • Adani Power: The long stop date under the MoU dated Aug. 18, 2022, to acquire 100% stake in DB Power has expired.
  • ONGC: ONGC clarified that ONGC Videsh, a wholly owned subsidiary of the company, signed an MoU with Argentina’s state oil company YPF for co-operation in the hydrocarbon sector.
  • Bharat Electronics: The company signed an MoU with Goa Shipyard for co-operation for supply of products such as autonomous boats, and other systems based on artifical intellegence for naval platforms.
  • Patel Engineering: The company, along with its joint venture partners, has been chosen for projects worth Rs 1,567 crore in Madhya Pradesh and Maharashtra, to be completed within 36 months.
  • Bharat Dynamics: The company signed ten MoUs with Thales, UAE-based Al Tariq, Bulgaria’s Bultexpro, Indian Institute of Technology-Madras and Tamil Nadu Industrial Development Corporation at the Aero India event. It also launched several products at the event.


Nifty Outlook

Benchmark Nifty index settled higher for the second consecutive trading session, closed shop at 18016 levels after adding 86 points to its previous closing values.

Mid cap index outperformed the benchmark, gained 0.71% while small cap index traded in line with benchmark. Market breadth was inclined towards the advancing side as 1254 advances were recorded against 992 declines at NSE.

All sectoral indices, barring FMCG and Pharma, settled higher. Amongst them, Nifty Realty index was at the top of the tally, gained 1.30% followed by Nifty IT that was up 1.13%.

Going ahead, we reiterate our bullish view on Nifty index till it is holding above 17850 levels and expect it to test 18200 levels in near term.


Derivatives Overview & Outlook

Yesterday, both Nifty and Banknifty futures added around 1.5% of open interest each as long buildup.

All F&O sectors settled higher. Amongst them, Power, Infra and Capital Goods stocks witnessed maximum addition of long positions.

On options front, put writing was seen at multiple strike with maximum writing at 18000 strikes and maximum positions are at 17800 PE and 18200 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 432 Cr in the cash segment, bought stocks futures worth Rs 1921 Cr and sold index futures worth Rs 262 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 517 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18100-18200; Supports 17950-17850

Banknifty Futures – Resistances 42000-42250; Supports 41550-41200


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