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

The benchmark nifty index extended losses for second consecutive day and settled at 18182 levels, down 105 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled higher over 1%.
  • European equity markets settled on a mix note
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is trading up by 50 points (as on 8:20AM)


News highlights from across the globe

  • Asian markets are trading higher after U.S. stocks rallied on signs of optimism from debt-ceiling talks, allowing investors to refocus on the path for interest rates and the health of the banking system.
  • JPMorgan Chase & Co. chief Jamie Dimon said the U.S. government “probably” will not default on its debts after he and other bank leaders met in Washington to discuss the debt limit.
  • The yield on 10-year treasuries in the U.S. was trading at 3.56%. Crude was above $76-mark


Important news updates from the domestic front

  • State Bank of India/HDFC Bank: The Reserve Bank of India is allowed to acquire up to 9.99% of the paid-up share capital or voting rights of HDFC Bank. SBI Funds Management has been advised by RBI to acquire the shareholding by Nov. 15, 2023.
  • Vedanta’s board will meet on May 22 to consider the first interim dividend for the fiscal 2023-24. The record date for the dividend, if approved, will be May 30.
  • JSW Steel has been selected as the preferred bidder for the composite license of the unexplored Surjagad 4 iron ore block in Gadchiroli, Maharashtra. The highest final offer price by the company is 131.05% of the average monthly prices of iron ore of different grades and quality.
  • Vedant Fashions: Promoter Ravi Modi Family Trust will sell up to 9.88% stake in the company through an offer for sale on May 18 and 19. The floor price for the offer is Rs 1,161 per share.
  • NHPC received a letter of intent from Gujarat Urja Vikas Nigam for 200 MW capacity Solar Power Project within 600 MW Gujarat State Electricity Corporation’s solar park at Khavda. The estimated financial implication for the project will be Rs 1,007.60 crore.
  • Bharat Heavy Electricals gave Jai Prakash Srivastava additional charge of the post of director (finance) for one year, effective April 18, 2023 to April 17, 2024. It also appointed Krishna Kumar Thakur as director (human resources) for a period of five years from the date of assumption of charge.
  • Godrej Agrovet has collaborated with the State Bank of India to launch a finance offering for oil palm farmers.


Nifty Overview & Outlook

The benchmark nifty index extended losses for second consecutive day and settled at 18182 levels, down 105 points from its previous closing values.

The Small cap index outperformed the benchmark as it was up 0.53% while Midcap index settled on a flat note; resultant, market breadth was flat.

Majority of sectoral indices tracked at NSE settled lower. Amongst them, Nifty Media was the worst performer down over 2% followed by Realty and IT indices that were down in range 1.33% & 0.97% respectively.

Going ahead, Nifty managed to hold above 18150 support levels, as mentioned in the previous post.  The immediate resistance for a Nifty is placed around 18400 levels and support is still around 18150 levels. Our bullish view is still intact until it is holding above the said support levels.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures shed around 1%, 5% and 23% of open interest respectively as long unwinding.

On sectoral front, short buildup was seen among Media, Metal and Telecom stocks whereas some long buildup was seen among Auto and Cement stocks.

On options front, Nifty (18 May contract) call writing was seen at multiple strikes and it has maximum positions at 18000 PE and 18400 CE. Banknifty (18 May contract) has maximum positions at 43500 PE and 44000 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 149 Cr in the cash segment, sold stocks futures worth Rs 1756 Cr and also sold index futures worth Rs 530 Cr. DIIs were net sellers in the cash segment to the tune of Rs 204 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18325-18400; Supports 18100-18000

Banknifty – Resistances 44000-44250; Supports 43450-43250


Important Results: State Bank of India, ITC, InterGlobe Aviation, Zydus Lifesciences, UNO Minda, United Spirits, Ramco Cements, Arvind, PI Industries, Gland Pharma, Transport Corporation of India, Tata Elxsi, Gulf Oil Lubricants India, Bata India, RITES, Sumitomo Chemical India, PNB Housing Finance, Syrma SGS Technology, Container Corporation



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