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

The benchmark Nifty index settled lower at 18688 levels, down 68 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled higher over 1%
  • European equity markets settled on a mix note
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is up by 46 points (as on 8:35AM)


News highlights from across the globe

  • The stock rally driven by the exuberance surrounding artificial intelligence is widening beyond the tech industry, defying naysayers and raising concern about an overbought market.
  • Mounting bets that the Federal Reserve will end its tightening cycle sooner rather than later to prevent a recession added fuel to the equity advance, with the S&P 500 topping 4,400 and rising for a sixth straight day. The Dow Jones Industrial Average extended its advance from a September low to almost 20%, while the Nasdaq 100 closed at its highest since March 2022.
  • Brent crude was trading around $75 a barrel and the yield on the 10-year U.S. bond was trading at 3.72%


Important news updates from the domestic front

  • Tech Mahindra appointed Mohit Joshi as managing director and chief executive officer of the company with effect from Dec. 20, 2023, to June 19, 2028. Current MD and CEO CP Gurnani will retire on Dec. 19, 2023.
  • Titagarh Wagons, Ramakrishna Forgings won a Rs 12,226.5 crore contract to manufacture and supply 15,40,000 forged wheels over a span of 20 years for Indian railways. As per the contract, 40,000 forged wheels will be delivered during the first year, 60,000 wheels in the second year, and 80,000 wheels every subsequent year thereafter.
  • TVS Motor sold its entire stake of 11.12 crore equity shares, or 43.54% stake, held in associate company Emerald Haven Realty for Rs 166.83 crore to TVS Holdings, a promoter group company.
  • Bharat Heavy Electricals, Eicher Motors: BHEL, Volvo Eicher Commercial Vehicles inked a memorandum of understanding to jointly develop and deploy Type-IV hydrogen and CNG cylinders in the commercial vehicle segment.
  • Torrent Pharma: U.S. FDA has issued an Establishment Inspection Report after inspecting the drugmaker’s oral-oncology manufacturing facility at Bileshwarpura in Gujarat.
  • Natco Pharma: U.S. FDA has issued an Establishment Inspection Report after inspecting Natco’s drug formulations manufacturing facility at Visakhapatnam in Andhra Pradesh from Jan. 30 to Feb. 3.
  • Power Finance Corporation wholly owned subsidiary, PFC Consulting, has been nominated as Bid Process Coordinator for the development of independent transmission projects by the Power Ministry. The company will take the special purpose vehicle route to execute the tariff-based competitive bidding process.
  • NLC India has incorporated a wholly-owned subsidiary, NLC India Renewables, to take over the existing renewable assets of the company.


Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18688 levels, down 68 points from its previous closing values.

Mid & Small cap index outperformed the benchmark as Small cap index settled on positive note while mid cap index fell just 0.17% against 0.36% decline in frontline index.

Performance on the sectoral front was mix. Amongst them, PSU Bank index was the worst performer, fell 2%, followed by Pvt Bank, Banknifty and Media index that were down over 1% each. On the other hand, Nifty Healthcare and Pharma index led the greens, rose nearly 1.50% each.

Going ahead, we reiterate our bullish view on the Nifty and suggest traders to maintain buy on dips trading strategy till it is holding above 18400 levels on closing basis. On the other hand, Banknifty index is showing signs of weakness, sustenance below 43400 will open the doors for 43000 levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, Nifty & Banknifty futures added around 3% & 4% of open interest respectively as short positions while Finnifty futures shed around 11% of open interest as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Banking and Chemical stocks witnessed maximum addition of short positions whereas some long buildup was seen among Pharma stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 18700 PE and 18700 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 3086 Cr in the cash segment, sold stocks futures worth Rs 1441 Cr and also sold index futures worth Rs 746 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 298 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18870; Supports 18660-18580

Banknifty – Resistances 43860-44050; Supports 43200-42900

Finnifty – Resistances 19350-19450; Supports 19180-19100


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