Oil on tenterhooks as US steps up drive to contain Gaza crisis - Daily Market Update- Equity 16 Oct 2023 | Globe Capital Market LTD.
Oil on tenterhooks as US steps up drive to contain Gaza crisis – Daily Market Update- Equity 16 Oct 2023

Oil traded in a narrow range, with Israel yet to launch its expected ground offensive of the Gaza Strip and the US stepping up efforts to prevent the crisis from becoming a regional conflagration. Brent held below $91 a barrel, after surging almost 6% on Friday to cap a sizable weekly gain. Over the weekend, US officials rushed to speak with Middle Eastern nations — including back-channel talks with Iran — to contain the conflict. Secretary of State Antony Blinken returns to Israel on Monday, and President Joe Biden is also considering a trip there in the coming days.

Overview and Outlook

Global Stock Market Today

  • Barring Dow jones, other US equity markets ended on negative note.
  • European markets ended on a negative note, down in range of 0.59%  to 1.5%.
  • Asian equity markets are trading in red.
  • GIFT Nifty is little changed (as on 8:30AM), Nifty futures likely to open around 19725 levels.


News highlights from across the globe

  • Big tech sold off on Friday in New York, with the Nasdaq 100 down over 1%. Boeing Co sank after saying it’s investigating quality issues affecting the 737 Max aircraft. JPMorgan Chase & Co. and Wells Fargo & Co. gained on solid earnings.
  • Brent crude was trading at $90 a barrel and the yield on the 10-year US bond was trading at 4.64%.


Important news updates from the domestic front

  • Tata Motors will sell a 9% stake in Tata Technologies to TPG Rise Climate for Rs 1,467 crore and another 0.9% stake in TTL to Ratan Tata Endowment Foundation for Rs 146.7 crore.
  • Mahindra & Mahindra: September sales rose 18.14% year on year to 73,185 units, while production increased by 21.88% to 79,410 units. The Income Tax Department has filed an appeal in Bombay High Court against relief previously granted to the company over a Rs 432 crore tax dispute.
  • Laurus Labs: Associate ImmunoACT received marketing authorization approval for India’s first CAR-T cell therapy, NexCAR19, for cancer treatment therapy from the Central Drugs Standard Control Organisation.
  • NHPC expects Rs 788 crore worth of damages due to flash floods impacting its 510 MW Teesta-V Power Station in Sikkim. The damages are fully insured, and the company said it will lodge a formal claim for the damages.
  • L&T Finance Holdings: NCLT has approved the amalgamation of L&T Finance, L&T Infra Credit, and L&T Mutual Fund Trustee with L&T Finance Holdings on Oct. 13.
  • Infosys: The New York State Taxation Department has imposed a penalty of $15,076 for underpayment of advance tax in FY22.
  • Federal Bank: International Finance Corp. acquires an additional 7.26 crore shares (3% stake) via preferential issue, increasing its stake to 7.32%.
  • Gati: Total volume in Q2 volume rose 18% year-on-year to 333,000 metric tonnes on account of strong pre-festive ordering. Also, the company’s Bengaluru transshipment hub is now online.
  • Mankind Pharma: The company has resumed operation at the Sikkim facility as of Oct. 13. It has reported no damage to property due to flash floods when the facility’s operations were disrupted.


Nifty Overview & Outlook

The benchmark Nifty index ended on a negative note at 19750 levels, down 42 points from its previous closing values after a volatile trading session.

The broader markets performed inline with the benchmark as Small cap & Midcap index were down 0.12% and 0.17% respectively.

Performance on the sectoral front was mix. Amongst them, Nifty Auto & Realty index were at the top of the tally, rose nearly 1% and 0.5%.  On the other hand, Nifty Bank, Media and PSU Bank led the decline, settled lower in range 0.70% to 1.39% respectively.

Technically, Nifty index is well placed on multiple time frame. Going ahead, we reiterate our short term bullish view on Nifty index till it is trading above19600-19650 levels on a closing basis.


Derivatives Overview & Outlook

Last Friday, long unwinding was seen in Nifty and Finnifty futures with decrease in open interest by 2.0% and 5.2% respectively. Short buildup was seen in Banknifty future with increase in open interest by 9.6%.

On sectoral front, short buildup was seen in Chemicals, Technology and Textile stocks whereas some long buildup was seen in Infrastructure and Pharma stocks.

On options call writing along with put writing was seen at multiple strikes and maximum positions are at 19700 PE and 19800 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 3971 Cr in the cash segment, bought stocks futures and index futures worth Rs 3663 Cr and Rs 599 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 7086 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19860-19940; Supports 19600-19530

Banknifty – Resistances 44750-45000; Supports 44100-43900

Finnifty – Resistances 20000-20100; Supports 19730-19640






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