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

Asian equities advanced on Friday after a rescue package for First Republic Bank fueled a rebound in US shares.

Overview and Outlook

Global Market Update

  • US equity markets settled higher in range 1.17% to 2.48%
  • European equity markets were up in range by 0.89 to 1.99%
  • Asian equity markets are also trading in green
  • SGX Nifty is up over 100 points (as on 8:15 AM)


News highlights from across the globe

  • Asian markets opened higher after a rescue package for First Republic Bank sparked a rebound in the U.S. shares. Treasuries fell after the European Central Bank delivered a rate hike that added to bets the U.S. central bank will also raise next week.
  • The S&P 500 notched its largest one-day advance since January after the biggest U.S. lenders agreed to contribute $30 billion in deposits to First Republic, easing speculation that the bank could be the next to fail after two high-profile demises touched off the crisis last week.
  • The yield on 10-year treasuries were trading at 3.58%. Crude prices were trading around $74-mark


Important news updates from the domestic front

  • Tata Consultancy Services: The company’s CEO Rajesh Gopinathan resigned from the office, effective Sept. 15, after a six-year stint. K Krithivasan has been appointed as the CEO designate, effective March 16.
  • Zee Entertainment Enterprises: The company amicably settled disputes and claims with operational creditor Indian Performing Right Society. Subsequently, the insolvency plea filed by the latter against the former has been disposed of by the NCLT as withdrawn. The company has agreed to repay dues owned to IndusInd Bank in a bid to resolve insolvency, Bloomberg reported.
  • Infosys: The company’s subsidiary Infosys Finacle implemented the liquidity management solution for Netherlands-based financial services provider ABN AMRO.
  • Dr. Reddy’s Laboratories: The company divested its certain non-core brands in the dermatology segment to Eris Lifesciences for Rs 275 crore.
  • Voltas: Universal MEP Projects & Engineering Services, a wholly owned subsidiary of the company, has bagged multiple power distribution and solar projects worth Rs 1,770 crore across Uttar Pradesh, Madhya Pradesh, West Bengal, Odisha, and Karnataka.
  • Bajaj Finance: The company appointed Anup Saha and Rakesh Bhatt as executive directors and Arindam Bhattacharya as independent director for five years with effect from April 1, 2023.


Nifty Outlook

Benchmark Nifty Index ended on a flat note, settled at 16985 levels with a marginal gain of just 13 points after a highly volatile trading session.

Small cap index underperformed the benchmark as it fell 0.52% while Midcap index outperformed the benchmark, rose 0.50%. The market breadth was inclined toward the declining side as 1408 declines were recorded against 889 advances at NSE.

Majority of the sectoral indices settled higher, Nifty Media was at top of the tally, gained over 4% followed by FMCG and Realty index that were up over 1% each. On the other hand, Nifty Metal led the decline, fell over 2.50%.

Going ahead, we are expecting a relief rally towards 17250-17300 levels in near term. On levels front, it has strong supports around 16800-16750 levels while resistance is placed around 17250-17300 zones.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures added around 1% to 2% of open interest each as long buildup.

On the sectoral front, long buildup was seen among Banking and Finance stocks along with short covering among FMCG, Cement and Power stocks whereas some short buildup was seen among Metal stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 17000 PE and 17800 CE closely followed by 17000 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 282 Cr in the cash segment, sold stocks futures worth Rs 1419 Cr and also sold index futures worth Rs 1815 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2051 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17150-17250; Supports 16900-16800

Banknifty – Resistances 39600-40000; Supports 39000-38800


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