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

Benchmark Nifty index settled higher on the last trading session on the week, closed shop at 17956 levels after adding 98 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.3 to 0.7%
  • European equity markets also edged higher
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is little changed (as on 8:27 AM)


News highlights from across the globe

  • Asian equities are set to open the week with a tailwind from US stocks closing at the highest in a month as easing inflation expectations fuel January’s global share rally.
  • The S&P 500 and Nasdaq finished at their highest levels in a month on Friday, with shares of JPMorgan Chase and other banks rising following their quarterly results, which kicked off the earnings season.


Important news updates from the domestic front

  • Mahindra & Mahindra: The Mumbai bench of NCLT has approved the merger of Mahindra Electric Mobility with the company.
  • Lupin: U.S. FDA inspected Lupin’s Somerset, New Jersey, U.S.A. manufacturing facility and closed with issuance of Form-483 with two observations.
  • Aster DM: Malabar Institute of Medical Sciences, a material subsidiary of Aster DM Healthcare, has entered into an agreement to acquire 99.99% stake in Cantown Infra Developers for Rs 15.22 crore.
  • L&T Finance Holdings: The board approved the amalgamation of L&T Finance, L&T Infra Credit and L&T Mutual Fund Trustee with the company. The company appointed Vinay Chhawchharia as chief risk officer for two years, effective Jan. 13, 2023.
  • State Bank of India: The bank hiked one-year lending rate by 10 basis points to 8.4%, with effect from Jan. 15.
  • Tata Steel: The company said British Steel Pension Scheme with Tata Steel U.K. as sponsor has completed a substantial part of its de-risking journey with 60% of its liabilities now insured by an insurance company.
  • Jet Airways: The Mumbai bench of NCLT approved transfer of the airline’s to the Jalan-Kalrock consortium.
  • HG Infra Engineering: The company received a letter of acceptance from Delhi Metro Rail Corporation for a project with estimated cost of Rs 399 crore.


Nifty Outlook

Benchmark Nifty index settled higher on the last trading session on the week, closed shop at 17956 levels after adding 98 points to its previous closing values.

Broader markets underperformed the benchmark as Mid and Small cap index settled on flat to positive note. Market breadth was slightly tilted towards the advancing side.

Majority of sectoral gauges tracked at NSE settled higher. PSU bank and Metal index were at the top of the tally, gained over 1% each.

Technically, Nifty index is trading in narrow range 17750-18250 spot levels. Going ahead, we expect it to trade in sideways manner till it is trading in above mentioned congestion range. Either side break from this range will start the next directional move in that direction.


Derivatives Overview & Outlook

On Friday, both Nifty & Banknifty futures added around 2% & 6% of open interest respectively as long buildup.

Majority of F&O sectors settled higher. Amongst them, IT and Banking stocks witnessed maximum addition of long buildup whereas some short buildup was seen among Textile stocks.

On options front, put writing was seen at 17800 & 17900 strikes along with call writing at 18200 & higher strikes and maximum positions are at 17900 PE and 17900 CE.


FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 8942 Cr in the cash segment, bought stocks futures worth Rs 682 Cr and also bought index futures worth Rs 575 Cr. DIIs were net buyers in the cash segment to the tune of Rs 10043 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18100-18225; Supports 17930-17830

Banknifty Futures – Resistances 42600-42900; Supports 42200-41900


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.