Rupee hits three-month high as RBI eases dollar buying on Fed signal, FII Flows : Daily Market Update Equity 18 Dec 2023 | Globe Capital Market LTD.
Rupee hits three-month high as RBI eases dollar buying on Fed signal, FII Flows : Daily Market Update Equity 18 Dec 2023

The Indian rupee hit its highest level in nearly three months on Friday on the back of persistent foreign fund inflows and some easing in the Reserve Bank of India's dollar buying, two currency traders said on the condition of anonymity. The rupee closed the trade at Rs 83 a dollar, after hitting a high of Rs 82.95 earlier in the day. On Thursday, the Indian currency closed at Rs 83.33 against the greenback.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended mix, S&P was down 0.18% while Nasdaq ended on a flat to positive note.
  • Barring FTSE, other European equity markets settled on a positive note.
  • Asian equity markets are a trading mix.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21484 levels (as on 8:30AM)


News highlights from across the globe

  • Asian markets are trading lower on Monday ahead of the caution about the Bank of Japan’s policy meeting outcome and economic data from China.
  • Brent crude was trading 0.69% higher at $77.08 a barrel.


Important news updates from the domestic front

  • Zee Entertainment Enterprises has requested Culver Max Entertainment Pvt Ltd — formerly known as Sony Pictures Networks India Pvt Ltd — and Bangla Entertainment Pvt Ltd to extend the timeline required to make their merger effective.
  • Mankind Pharma acquired an additional 1.3% stake in Actimed Therapeutics for about £999,900. The company’s stake rises to 10.19%.
  • NBCC conducted an auction for the sale of 2.23 lakh square feet in the World Trade Centre and sold commercial inventory worth Rs 905 crore. Total sales of commercial inventory through e-auction stand at Rs 9,656.6 crore.
  • Tata Power signed Rs 418 crore pacts for supplying 152 MWp DCR solar PV modules to NTPC.
  • Lupin received approval from the United States Food and Drug Administration for its abbreviated new drug application for Allopurinol Tablets USP and Sitagliptin Tablets USP.
  • Mahindra & Mahindra‘s unit incorporated a wholly owned subsidiary named Migos Hybren Pvt for power and electricity generation.
  • United Spirits gets a claim worth Rs 365.33 crore from an institutional customer in relation to a previously concluded settlement with the customer. The company cannot determine the financial implications of this claim.


Nifty Overview & Outlook

The Benchmark Nifty index extended gains for the third consecutive trading sessions, settled at record highs i.e. 21456 levels after adding 273 points to its previous closing values.

Nifty index outperformed the broader markets as it was up over 1% while Small Cap & Midcap index were up 0.71% and 0.22% respectively.

Majority of the sectoral indices settled higher. Amongst them, Nifty IT index was at the top of the tally, rallied over 4.5% followed by Nifty Metal, PSU Bank and Oil & Gas index that settled higher in range 1% to 2.5%. On the other hand, Nifty Realty and FMCG index led the declines, fell 0.71% and 0.32% respectively.

Technically, Nifty Index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21000 levels on closing basis and expect it to test 21800 and higher levels in near term. However, possibility of some profit taking can not be ruled out at this juncture.


Derivatives Overview & Outlook

Last Friday, long buildup was seen in Nifty, Banknifty and Finnifty futures with increase in open interest by 3.3%, 8.8% and 1.9% respectively.

On the sectoral front, long buildup was seen among Metals and Capital Goods stocks along with some short covering was seen in Banking stocks and some short buildup was seen in Infrastructure stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 21300 PE and 22000 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 18858 Cr in the cash segment, bought stocks futures and index futures worth Rs. 858 Cr and Rs. 1396 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 2593 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21640-21730; Supports 21280-21100

Banknifty – Resistances 48500-48900; Supports 47650-47110

Finnifty – Resistances 21650-21750; Supports 21280-21100




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