Daily Market Update- Equity 17 Feb 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 17 Feb 2023

Benchmark Nifty Index opened with gap on higher side, failed to sustain at higher levels, and settled on flat note at 18035 levels after adding just 20 point to the previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets down in range 1.26 to 1.78%
  • European equity markets settled on flat to positive note
  • Most of the Asian equity markets are trading in red
  • SGX Nifty is trading down by 100 points (as on 8:15 AM)


News highlights from across the globe

  • Asian markets declined, following a drop in the U.S. benchmarks after comments by two Federal Reserve officials that they were considering 50 basis-point interest rate hikes to battle persistently high inflation.
  • The yield on 10-year Treasuries advanced to 3.87%. Crude prices were trading around $85-mark.


Important news updates from the domestic front

  • Vedanta: The company was selected as the preferred bidder for receiving composite licence for Kelwardabri block in Chhattisgarh, which has reserves of nickel, chromium and associated platinum group elements.
  • REC: Fitch Ratings has assigned ‘BBB-’ rating to proposed senior unsecured notes of the company, which will be issued from its existing $7 billion global medium-term note programme.
  • RailTel Corporation of India: The company received a work order worth Rs 27.07 crore from Bangalore Metro Rail Corporation for supply, installation, testing and commissioning of the IT network infrastructure, and a comprehensive annual maintenance contract of Rs 6.22 crore per year for 5 years, extendable to 10 years.
  • Vodafone Idea/Bharti Airtel/Reliance Industries: Vodafone Idea lost 2.47 million subscribers in December last year, while Bharti Airtel and Reliance Jio Infocomm added 1.53 million and 1.7 million subscribers during the month, respectively, as per data released by telecom regulator TRAI.
  • Hindustan Aeronautics/Bharat Forge: Hindustan Aeronautics, Saarloha Advanced Materials and Bharat Forge signed an MOU for collaboration in development and production of aerospace grade steel alloys.
  • UltraTech Cement: The company commissioned 1.30 mtpa brownfield cement capacity in Hirmi, Chhattisgarh and 2.80 mtpa greenfield grinding capacity in Cuttack, Odisha, taking its total cement manufacturing capacity in India to 126.95 mtpa.
  • Angel One: Narayan Gangadhar resigned from the position of CEO of the company, effective close of business hours on May 16, 2023, due to personal reasons. The day-to-day affairs of the company will be under chairman and managing director Dinesh Thakkar for now.


Nifty Outlook

Benchmark Nifty Index opened with gap on higher side, failed to sustain at higher levels and it kept sliding lower in a gradual manner. It settled on a flat note at 18035 levels after adding just 20 point to the previous closing values.

Performance on the sectoral front was mix. Nifty IT, Realty and Metal index were at the top of the tally, gained 1.63%, 1.33% & 1.23% respectively.

Going ahead, we reiterate our bullish view on Nifty index till it is holding above 17900 levels and expect it to test 18200 levels in near term.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen among Nifty and Banknifty futures on the price front whereas on open interest front Nifty futures remained almost unchanged while Banknifty futures added around 6% of open interest.

On sectoral front, long buildup was seen among Oil & Gas, IT and Capital Good stocks whereas some short buildup was seen among Finance and Telecom stocks.

On options front, Nifty will start the final expiry week of February series with maximum positions at 18000 PE and 18100 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 1571 Cr in the cash segment, bought stocks futures worth Rs 873 Cr and sold index futures worth Rs 351 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 1577 Cr.


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