Daily Market Update- Equity 18 Jan 2023 | Globe Capital
18-Jan-2023
Daily Market Update- Equity 18 Jan 2023

Nifty index settled at the day’s top at 18053 levels, up 158 points from its previous closing point, steep buying was witnessed in the final hour of trading that helped the benchmark settle higher.

Overview and Outlook

Global Market Update

  • US equity markets drifted lower, Dow Jones was down 1.14% while Nasdaq ended on flat note
  • European equity markets were little changed
  • Asian equity markets are trading in green
  • SGX Nifty is little changed, up 26 points (as on 8:20 AM)

 

News highlights from across the globe

  • U.S. stocks struggled to rise as earnings outlook and Fed’s prospective plans weighed on investor sentiments. The S&P 500 changed little by mid-day. Meanwhile, the yield on 10-year Treasuries advanced three basis points to 3.53%.
  • The Dow Jones fell more than 1 percent on Tuesday as weak earnings from Goldman Sachs dragged the index lower, but a jump in Tesla shares helped the Nasdaq stay positive as the corporate earnings season took center stage.
  • Crude price fell 0.5%, while gold declined 0.6%.

 

Important news updates from the domestic front

  • ITC: The company will acquire 100% stake of Sproutlife Foods for a cash consideration. Initially, Rs 255 crore will be invested to acquire 47.5% stake till March 2025.
  • Rail Vikas Nigam: The company has emerged as the lowest bidder for two projects by under Surat Metro Rail Project Phase-I and Ahmedabad Metro Rail Project Phase-II worth Rs 673.80 crore and 384.30 crore, respectively.
  • Adani Enterprises/Ashok Leyland: The company has signed an agreement with Ashok Leyland and Canada’s Ballard Power for a pilot project to develop and launch hydrogen fuel cell electric truck in 2023.
  • REC: The entire shareholding of WRSR Power Transmission with REC Power Development & Consultancy, a subsidiary of the company, has been transferred to Adani Transmission.
  • Glenmark Pharmaceuticals: The company will divest select brands and sub-brands from its dermatology segment for India and Nepal territories to Eris Oaknet Healthcare for Rs 340.48 crore.
  • Jammu & Kashmir Bank: The board will meet on Jan. 23 to consider raising Tier-I capital via employee stock purchase scheme.
  • Coforge: Life Insurance Corporation increased its stake in the company to 5.03% from 4.98%.

 

Nifty Outlook

Nifty index settled at the day’s top at 18053 levels, up 158 points from its previous closing point, steep buying was witnessed in the final hour of trading that helped the benchmark settle higher.

Broader markets under performed benchmark as Mid & Small cap index settled on flat to negative note, leading to weak market breadth.

Majority of sector gauges tracked at NSE settled in green, FMCG & Realty index were at the top of the tally, up over 1% each while PSU Bank index lost maximum, down 1.84%.

Going ahead, sustenance above 18050 levels the key for further up move and buying interest will intensify above 18150 levels, post which 18400 can be tested in the immediate near term.

 

Derivatives Overview & Outlook

Yesterday, no meaningful activity was seen in Nifty and Banknifty futures on price as well as on open interest front.

On the sectoral front, short buildup was seen among Banking and Media stocks whereas long buildup was seen among Capital Goods and Power stocks.

On options front, put writing was seen at multiple strikes along with call buying (unwinding by writers) at 18000 strikes and maximum positions are at 17900 PE and 18200 CE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 211 Cr in the cash segment, bought stocks futures worth Rs 848 Cr and also bought index futures worth Rs 1488 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 91 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18175-18250; Supports 17975-17880

Banknifty Futures – Resistances 42600-42900; Supports 42100-41900

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