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

Credit Suisse to borrow up to $54 Billion from Swiss National Bank liquidity facility

Overview and Outlook

Global Market Update

  • US equity markets settled on flat to negative note, Nasdaq ended on flat note while Dow jones and S&P 500 fell 0.87% & 0.70% respectively.
  • European equity markets ended sharply lower in range 3% to 4%
  • Most of the Asian equity markets are trading in red
  • SGX Nifty is little changed (as on 8:15 AM)


News highlights from across the globe

  • Asian markets headed for declines after the U.S. stocks fell and government bonds and the dollar rallied.
  • A fresh turmoil at Credit Suisse Group AG roiled markets days after the collapse of three American lenders. This casts doubt on whether the Federal Reserve will increase interest rates next week.
  • U.S. futures showed fledgling signs of stability after Switzerland’s central bank said Credit Suisse would receive a liquidity backstop if needed.
  • Brent crude slipped below $75 a barrel for the first time since December 2021, intraday.


Important news updates from the domestic front

  • Samvardhana Motherson International: Sumitomo Wiring Systems to sell approximately 3.4% stake or 23 crore shares via JPMorgan, reports Bloomberg. The size of the deal will be around $195 million (approximately Rs 1,613-crore) at a floor price of Rs 69.90 apiece.
  • Patanjali Foods: Stock exchanges BSE and National Stock Exchange have frozen shareholding of promoters and promoter group in the company as it could not increase public shareholding to the required 25% within the stipulated deadline. The action, which affected 29.26 crore shares, will remain in effect till the mandated public shareholding levels are met.
  • Ceat: Ceat Specialty, a division of Ceat Tires, entered into an agreement with CNH Industrial to supply agricultural radial tires for their machines being produced in Brazil and Argentina, the company said in a statement.
  • ITC: ITC Infotech India, a wholly owned subsidiary of the company, incorporated a subsidiary in Germany under the name ITC Infotech GmbH.
  • Federal Bank: The board of the bank will meet on March 18, 2023, to consider raising Rs 1,000 crore via tier-II bonds on a private placement basis.


Nifty Outlook

The benchmark Nifty continued its decline for the fifth consecutive session and ended lower at 16972 with the loss of 72 points from its previous closing values.

Broader market outperformed the benchmark as Mid and Small cap ended on positive note against 0.42% decline in benchmark.

Barring Nifty Metal and Pharma, all the sectoral indices tracked at NSE settled in red. Amongst them, Nifty PSU Bank and Media were the worst performer, plunged 1.2% each followed by Nifty Realty, Pvt Bank and Financial services index that were down nearly 1% each.

Technically, Nifty index has closed below the important psychological support levels of 17000 mark. Going ahead, we maintain sell on rise trading approach till the index is holding below 17300 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, Nifty futures added around 1% of open interest as short buildup whereas Banknifty future added around 1% of open interest as long unwinding.

On the sectoral front, short buildup was seen among Chemicals and Banking stocks whereas some long buildup was seen among Infra and Power stocks.

On options front, call writing was seen at multiple strikes along with put writing at 16900 and 16700 strikes and maximum positions are at 16800 PE and 17200 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1271 Cr in the cash segment, bought stocks futures worth Rs 256 Cr and also bought index futures worth Rs 82 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1824 Cr.



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