Tata Steel, U.K. Government agree to invest 1.25 billion pounds in Port Talbot site - Daily Market Update- Equity 18 Sep 2023 | Globe Capital Market LTD.
Tata Steel, U.K. Government agree to invest 1.25 billion pounds in Port Talbot site – Daily Market Update- Equity 18 Sep 2023

Tata Steel and the U.K. Government have announced an agreement to invest in Electric Arc Furnace steelmaking at the Port Talbot site with a capital cost of £1.25 billion, inclusive of a grant from the U.K. Government of up to £500 million, subject to conditions.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.83% to 1.56%
  • European equity markets ended on positive note.
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is up by 25 points (as on 8:30AM), Nifty futures likely to open around 20191 levels.


News highlights from across the globe

  • Asian equities open lower following tech-led declines on Wall Street Friday as investors look ahead to a week that includes Federal Reserve and Bank of Japan meetings.
  • On Friday, stocks fell in the U.S., with a $4 trillion options maturity amplifying volatility, pushing up the equity-volatility VIX gauge from its lowest level since 2020. Big tech losses were led by Nvidia Corp. and Meta Platforms Inc. which both fell more than 3.5%. The S&P 500 erased its weekly gain, while the Nasdaq 100 slid 1.8%. The Fed’s policy decision is scheduled for Wednesday.
  • Brent Crude prices slipped below $94 a barrel and the yield on the 10-year U.S. bond was trading at 4.33%.


Important news updates from the domestic front

  • Indian Oil Corp board approved an additional investment of Rs 903.52 in JV Hindustan Urvarak and Rasayan to be used for setting up fertiliser plants in Gorakhpur, Sindri and Barauni.
  • Bharat Electronics bagged multiple orders worth Rs 3,000 crore. The order worth Rs 2,119 crore is from Cochin Shipyard for supply of various equipment and other orders worth Rs 886 crore.
  • Tata Steel UK Government jointly agree on a proposal for the largest investment in the UK Steel Industry for decades.
  • Dhanlaxmi Bank independent Director Sridhar Kalyanasundaram resigned from the board citing “belligerent attitude of the MD & CEO” on various issues including rights issue, capital enhancement, whistleblower issues by the directors and unethical conduct of the bank’s business.
  • Tata Elxsi has partnered with INVIDI Technologies to transform addressable advertising for Pay-Tv operators.
  • Hindustan Aeronautics: The Defence Acquisition Council has approved procurement of 12 Su-30MKI Aircraft and avionics upgradation of Dornier Aircraft.
  • Zomato: Zomato Slovakia, a step-down subsidiary of the company has initiated the process of liquidation on Sept 14, which is expected to be completed within 9-12 months.


Nifty Overview & Outlook

Benchmark Nifty index ended at new record high, closed shop at 20192 levels after adding 88 points to its previous closing values in a lackluster trading session.
Broader markets performed in line with benchmark as Mid and Small-cap index rose around 0.5% each.
Performance on the sctoral front was mix. Nifty Auto was at the top of the tally and gained over 1.5%, followed by IT index that rose 0.94%. On the other hand, the Oil & Gas and FMCG index were the worst performers, fell 0.75% & 0.48% respectively.
Technically, Nifty index is well placed on multiple chart frames. However, possibility of some profit taking can not be ruled out at this juncture. Hence, we suggest traders maintain buy on dips trading strategy and adopt stock specific trading approach.


Derivatives Overview & Outlook

On Friday, long buildup was seen Nifty Future, Banknifty Future and Finnifty Future with increase in open interest by 2%, 2.2% and 11.9% respectively.

On sectoral front, long buildup was seen in Automobile, Finance, Pharma and Telecom shares while shorts buildup was seen among Media and Chemical shares. on the other hand, short covering was seen in Banking and Capital Goods shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 20100 PE and 20200 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 747 Cr in the cash segment, bought stocks futures and index futures worth Rs 7977 Cr and Rs 3258 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 3363 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 20390-20280; Supports 20100-19990

Banknifty – Resistances 46740-46500; Supports 45800-45650

Finnifty – Resistances 20860-20720 Supports 20340-20230


F&O stocks in ban today:



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