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

The benchmark nifty index erased past two days of gains and settled lower at 18286 levels, down 112 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.18 to 1%
  • European equity markets settled on a flat to negative note
  • Asian equity markets are trading mix
  • SGX Nifty is down by 40 points (as on 8:30AM)


News highlights from across the globe

  • Asian markets are trading mix while U.S. contracts posted muted gains after leaders in Washington expressed cautious optimism about a bipartisan deal after debt-ceiling talks
  • The yield on 10-year treasuries in the U.S. was trading at 3.53%. Crude was below $75-mark


Important news updates from the domestic front

  • Bharat Petroleum Corporation will set up an ethylene cracker project at Bina Refinery in Madhya Pradesh with a capex outlay of Rs 49,000 Cr. It will set up a 50 MW wind power plant for captive consumption at Bina Refinery and Mumbai Refinery in Maharashtra, with a total project cost of Rs 978 Cr.
  • MRF has signed a purchase agreement with First Energy 4 for the acquisition of a 19.1% stake and purchasing solar power. The acquisition will be done for a cash consideration of Rs 1,3.09 crore.
  • Aurobindo Pharma received tentative approval from U.S. FDA for its Abacavir tablets, used in the treatment of HIV infection.
  • KPI Green Energy and its subsidiary KPIG Energia received commissioning certificates from Gujarat Energy Development Agency for solar power projects with a cumulative capacity of 10.18 MW, to be set up for five clients.
  • One 97 Communications: The parent company of Paytm appointed Bhavesh Gupta as president and chief operating officer.
  • Reliance Industries: Jio-bp, the fuel vending joint venture between Reliance Industries and bp, launched premium diesel fuel at a price below that charged by state-run oil companies.


Nifty Overview & Outlook

The benchmark nifty index erased past two days of gains and settled lower at 18286 levels, down 112 points from its previous closing values.

Broader markets outperformed the benchmark as Mid was up 0.33% while Small Cap settled on a flat note against a 0.61% decline in the frontline index.

Majority of sectoral indices tracked at NSE settled in red. Amongst them, Nifty Media led the decline, fell over 1% followed by Nifty Auto and Financial Services that was down 0.93% & 0.74% respectively. On the other hand, Nifty PSU Bank was at the top of the tally gained 0.72%.

Technically, Nifty settled on a weak note and formed a bearish red Marabuzo candlestick on daily chart. The immediate resistance for Nifty index is placed around 17400 levels and support is around 18150 levels. Our bullish view is intact until it is holding above the said support levels on closing basis.


Derivatives Overview & Outlook

Yesterday, no meaningful activity was seen in Nifty and Banknifty futures on price as well as on open interest front whereas Finnifty futures shed around 40% of open interest as long unwinding.

On the sectoral front, long buildup was seen among Telecom and Capital Goods stocks whereas some short buildup was seen among Textile, Media and Pharma stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18400 CE and 18300 PE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1407 Cr in the cash segment, bought stocks futures worth Rs 83 Cr and sold index futures worth Rs 347 Cr. DIIs were net sellers in the cash segment to the tune of Rs 806 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18390-18450; Supports 18250-18150

Banknifty – Resistances 44200-44500; Supports 43700-43400


Important Results: Jindal Stainless, Jindal Saw, Quess Corp, JK Tyre & Industries, Thermax, Deepak Fertilisers & Petrochemicals Corporation, Endurance Technologies, Teamlease Services, Sterlite Technologies, Jubilant Foodworks, SKF India, Honeywell Automation India, Sheela Foam, Timken India, Devyani International, Zydus Wellness, Railtel Corporation Of India, Restaurant Brands Asia,



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