Daily Market Update- Equity 19 Jan 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 19 Jan 2023

Benchmark Nifty index settled higher for the second trading session, closed shop at 18165 levels after adding 112 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 1.2 to 1.8%
  • European equity markets ended flat
  • Asian equity markets are trading mix
  • SGX Nifty is down 91 points (as on 8:27 AM)


News highlights from across the globe

  • Stocks in Asia were poised to decline Thursday after US shares fell and the treasuries rallied. Shares edged lower in Australia and a gauge of US-listed Chinese companies slumped 2.5%.
  • U.S. stocks extended losses as economic data sparked concerns over growth outlook. The S&P 500 closed 1.6% lower, the biggest decline in a month. The yield on 10-year Treasuries declined to 3.37%.
  • Crude price declined by nearly a percent. Bitcoin broke its rally to fall below $21,000-level.


Important news updates from the domestic front

  • Adani Enterprises: The company filed the RHP for its Rs 20,000-crore follow-on public offering, with floor price at Rs 3,112 apiece and cap price at Rs 3,276 per share. The company also announced a discount of Rs 64 per share for retail buyers.
  • Vedanta: The company will acquire the debt-laden Meenakshi Energy for Rs 1,440 crore.
  • State Bank of India: The bank raised Rs 9,718 crore through 15-year infrastructure bonds at 7.7% coupon rate.
  • Aurobindo Pharma: The company’s subsidiary APL Health Care received Form 483 with two observations from U.S. FDA following an inspection of its unit I and III, an orals and derma manufacturing facility in Jadcherla, Telangana.
  • Coal India: In a coal ministry review, the company was found to have produced 513 million tonnes of coal so far in fiscal 2023, and is expected to surpass the target of 700 million tonnes for the current fiscal. The ministry has pegged the production target for the company during 2023-24 at 780 million tonnes.
  • Kotak Mahindra Bank: The board in its meeting scheduled on Jan. 21 will consider raising funds via non-convertible debentures during the remaining period of FY 2022-23, and by the way of NCDs, bonds or other debt securities during FY24.
  • Welspun Enterprises: The board of the company has approved voluntary liquidation of subsidiary Welspun Natural Resources to streamline the structure and reduce administrative overheads of the group.
  • Mahindra Lifespaces Developers: The company has been selected to redevelop two adjacent residential societies in Santacruz West, Mumbai. The project has a revenue potential of Rs 500 crore.


Nifty Outlook

Benchmark Nifty index settled higher for the second trading session, closed shop at 18165 levels after adding 112 points to its previous closing values.

Mid cap index performed in line with the benchmark, gained 0.67%, small cap index ended on a flattish note.

All sectoral indices, barring PSU bank index, settled higher. Amongst them, Metal index was at the top of the tally, gained 1.65% while PSU Bank index lost maximum, down 1.25%.

Nifty index is trading on verge of bullish breakout from the congestion zone (17750-18250 levels) of past one month. Going ahead, crossover and sustenance above 18250 levels will open the doors for further up move till 18500 and higher levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, Nifty futures added around 2% of open interest as long buildup whereas Banknifty futures shed around 8% of open interest as short covering.

Majority of F&O sectors settled higher. Amongst them, Metals and Capital Good stocks witnessed maximum addition of long buildup whereas some short covering was seen among Chemical stocks.

On options front, put writing was seen at 18100 & 18000 strikes along with call writing at 18300 & higher strikes and maximum positions are at 18000 PE and 18300 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 319 Cr in the cash segment, bought stocks futures worth Rs 735 Cr and also bought index futures worth Rs 1927 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1226 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18300-18375; Supports 18080-17980

Banknifty Futures – Resistances 42700-43000; Supports 42250-42000


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