Daily Market Update- Equity 18 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 18 Aug 2023

China Evergrande Group, the real estate giant, sought bankruptcy protection in New York

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range of 0.77% to 1.17%
  • European equity markets settled on negative note
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is up by 15 points (as on 8:20AM), Nifty likely to open at 19300.


News highlights from across the globe

  • China Evergrande Group, the real estate giant whose default two years ago accelerated a broader property debt crisis in the country, sought Chapter 15 bankruptcy protection in New York on Thursday.
  • Shares in Asia are poised to drop as investor concern that monetary policy makers may not be done raising interest rates fueled a further selloff in U.S. stocks and bonds.
  • Equity futures for benchmarks in Japan, Australia and Hong Kong all declined. Contracts on U.S. indexes fell in early Asia trading after stocks in New York extended this week’s losses on Thursday, with the Nasdaq 100 notching its worst three-day slide since February.
  • Brent crude was trading below $85 a barrel and the yield on the 10-year U.S. bond was trading at 4.27%.


Important news updates from the domestic front

  • Adani Energy Solutions has initiated arbitration proceedings against Gujarat Energy Transmission Corp. and expects to claim Rs 99.76 crore regarding work done on 400 kV D/C Mundra-Zerda transmission line. It is also fighting three claims aggregating Rs 1,862.5 crore in various courts.
    Adani Green Energy associate company, Mundra Solar Energy, has received approval for its solar photovoltaic manufacturing plant at Mundra, Gujarat from the Solar Energy Corp. of India. The plant has capacity of 2.0 GW per annum.
  • LTI Mindtree: The company is selected by U.S.-based Aflac as digital transformation partner for application modernization and cloud transformation. The company will rearchitect Aflac’s on-prem applications that are currently deployed on an out-of-support-platform.
  • NTPC inked business transfer agreement to sell its coal mining business to unit, NTPC Mining. It will transfer all six coal mines to NTPC Mining.
  • Spandana Sphoorty Financial board has approved the issuance of non-convertible debentures up to Rs 75 crore, including green shoe option of Rs 25 crore on private placement basis. The debentures carry an interest rate of 10.60% quarterly, with a tenure of 18 months from allotment, which is Aug. 24. The instrument will be listed on the BSE.
  • Zydus Lifesciences got final approval from the USFDA for Doxepin tablets used to treat insomnia. Doxepin tablets, 3 mg and 6 mg had annual sales of $43.4 million in the U.S.


Nifty Overview & Outlook

The benchmark Nifty index witnessed selling pressure after a post flat opening on weekly expiry day, settled the day on a negative note at 19365 levels, down 100 points from its previous closing values.

Broader market outperformed the benchmark as Midcap & Small cap index ended on a positive note against 0.53% decline of frontline index; resultant, weak market breadth.

Majority of sectoral indices tracked at NSE settled in red. Amongst them, Nifty FMCG and Oil & Gas index witnessed selling pressure down nearly 1% each. On the other hand, Nifty Consumer Durables and PSU Bank index were at the top of the tally gained, 1.79% and 1.43%% respectively.

Technically, Nifty index is still trading in a range for past couple of sessions. Going ahead, we reiterate our short term sideways view on Nifty index till it is trading in 19250-19700 levels on a closing basis. Either side break and sustenance from the said range will open the doors for next directional move in that direction.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty future and Banknifty future with increase in open interest by 3.5% and 5.6% respectively whereas long unwinding was seen in Finnifty future with decrease in open interest by 0.9%.

On the sectoral front, fresh long buildup was seen in Banking stocks, short buildup was seen in Oil & Gas and Power Telecom stocks whereas some short covering was seen in Infra and Textile shares. Capital goods and Technology share showing initial sign of long unwinding.

On options front, Nifty will start the new weekly expiry with maximum positions at 19300 PE and 19400 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1511 Cr in the cash segment, sold stocks futures and index futures worth Rs. 3556 Cr and Rs. 216 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 314 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19480-19545; Supports 19290-19250

Banknifty – Resistances 44260-44370; Supports 43660-43580

Finnifty – Resistances 19670-19740; Supports 19430-19350





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