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

The benchmark nifty index extended gains for the second straight trading session, settled higher at 18398 levels after adding 84 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.14 to 0.66%
  • European equity markets settled on a flat note
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is up by 50 points (as on 8:40AM)

 

News highlights from across the globe

  • Asian markets are trading in green as traders continue to look for clues of any breakthrough in Washington’s stagnant negotiations to avert a US default.
  • U.S. stock market traded in a tight range on Monday, with equities making small gains ahead of a meeting between President Joe Biden and House Speaker Kevin McCarthy. Both factions have been sending mixed signals, while Treasury Secretary Janet Yellen reiterated her department could run out of cash as soon as June 1 unless Congress raises or suspends the federal debt limit.
  • The yield on 10-year treasuries in the U.S. was trading at 3.59%. Crude edged above $75-mark,

 

Important news updates from the domestic front

  • Ultratech Cement: Ultratech Nathdwara Cement, the company’s wholly owned subsidiary commissioned a brownfield cement facility with annual capacity of 0.8 million tonnes in Neem Ka Thana, Rajasthan. The company’s total grey cement manufacturing capacity now stands at 129.95 million tonnes per annum.
  • Wipro: The company will integrate its cloud computing framework with Google Cloud’s Rapid Migration Program, together with artificial intelligence and automated tooling, to accelerate cloud adoption among its clients.
  • HCL Technologies: The company expanded its partnership with SAP, becoming a customer of and a global strategic service partner for SAP SuccessFactors Human Experience Management Suite.
  • NIIT: The company bought remaining 10% stake in RPS Consulting for a fixed consideration of Rs 15 crore, and a performance based earnout consideration of up to Rs. 3.71 crore, payable over the next two years. NIIT now owns 100% stake in RPS Consulting.
  • HDFC Bank/HDFC: Markets regulator SEBI has approved change in control of HDFC Capital Advisors, a subsidiary of HDFC and a co-investment portfolio manager, pursuant to the merger of the two companies.
  • Vedanta: The company appointed Sonal Shrivastava as the chief financial officer, effective June 1, it said in a statement.

 

Nifty Overview & Outlook

The benchmark nifty index extended gains for the second straight trading session, settled higher at 18398 levels after adding 84 points to its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were up nearly 1% each; despite that, market breadth was almost flat as 1.24 advances were recorded for every declining share at NSE.

All sectoral indices tracked at NSE settled in the green. Amongst them, Nifty Realty was at the top of the tally rose over 4% followed by PSU Bank and FMCG index that were up by over 1% each.

Going ahead, we reiterate our bullish view on the Nifty index and we suggest traders to maintain buy on dips trading strategy till it is holding above 18150 levels on closing basis.

 

Derivatives Overview & Outlook

On Friday, Nifty, Banknifty and Finnifty futures added around 2%, 7% and 38% of open interest respectively as long buildup.

Majority of F&O sectors settled higher. Amongst them, Finance, FMCG and Realty stocks witnessed maximum addition of long positions.

On options front, Nifty (18 May contract) put writing was seen at multiple strikes along and it has maximum positions at 18300 PE and 18500 CE. Banknifty (18 May contract) has maximum positions at 43500 PE and 44000 CE.

 

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1685 Cr in the cash segment, bought stocks futures worth Rs 646 Cr and also bought index futures worth Rs 1290 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 191 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18475-18550; Supports 18350-18250

Banknifty – Resistances 44200-44500; Supports 43700-43400

 

Important Results: Bharti Airtel, LIC Housing Finance, Max Healthcare Institute, Bank of Baroda, Indian Oil Corporation, Jindal Steel & Power, JK Paper, Credit Access Grameen, Alicon Castalloy, Amber Enterprises India, Aurionpro Solutions, Automotive Axles, Chemplast Sanmar, EIH Associated Hotels, Excel Industries, Granules India, Jubilant Ingrevia, Kajaria Ceramics

 

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