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

The benchmark Nifty index opened with a gap up on the higher side, kept the bullish momentum rolling throughout the session and settled at 18826 levels after adding nearly 150 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled lower in range 0.32% to 0.68%
  • European equity markets settled higher in range 0.19% to 1.32%
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:30AM)


News highlights from across the globe

  • U.S. equity futures rose in early trade and Asian equity markets are trading mix on Monday amid signs of improving ties between the U.S. and China, while contracts for benchmarks in Asia showed muted moves.
  • The small advance on Monday follows positive signs that Sino-U.S. relations will thaw, and also ongoing optimism that China will unleash fresh stimulus to boost its flagging recovery.
  • Brent crude was trading around $76 a barrel and the yield on the 10-year U.S. bond was trading at 3.76%


Important news updates from the domestic front

  • Adani Enterprises: Adani Digital Labs has signed a share purchase agreement to acquire a 100% stake in Stark Enterprises. Stark Enterprises, also known as Trainman, is an online train booking and information platform.
  • Axis Bank appointed former RBI Deputy Governor N.S. Vishwanathan as Non-Executive Part-Time Chairman with effect from Oct. 27, 2023.
  • Castrol India and Mahindra Insurance Brokers have signed an agreement to distribute insurance policies. The deal will allow Castrol Auto Service workshops to distribute eligible insurance policies, and these workshops will be able to register as cashless claim sites with insurance companies.
  • Trident: Trident Home Textiles, incorporated a wholly-owned subsidiary, Trident Global B.V., in the Netherlands. Trident Global will carry out the wholesale business of textiles, paper, non-food consumer goods, and clothing accessories.
  • Axiscades Technologies agreed to acquire a 100% stake in Add Solution GmbH for 5.5 million euros (Rs 49.27 crore).
  • Dr. Reddy’s Laboratories: The USFDA completed a good manufacturing practice (GMP) inspection at the company’s API manufacturing facility in Bollaram, Hyderabad. The inspection was conducted on June 12 and June 16 and closed with zero observations.
  • ABB India: The Kanpur Metro has deployed ABB India’s electrification solutions for safe, reliable, and quality power distribution. ABB India has been contributing to Indian Metro systems by proving electrification solutions to 13 metro rail projects across India.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap up on the higher side, kept the bullish momentum rolling throughout the session and settled at 18826 levels after adding nearly 150 points to its previous closing values.

Broader market performed in line with the benchmark as Mid & Small cap indexes were up nearly 1% each. The market breadth was skewed in favor of bulls as nearly 2 advances were recorded for every declining share at NSE.

Majority of sectoral indices tracked at NSE settled higher. Amongst them, PSU Bank index was at the top of the tally, up nearly 1.5% followed by Nifty Bank, Financial Services and Media index that rose over 1% each.

Technically, Nifty witnessed a breakout from the congestion zone (18480-18750 levels) of last 2 weeks. Going ahead, we reiterate our bullish view on the Nifty index as we expect it to test 18900 and higher levels in immediate near term.


Derivatives Overview & Outlook

On Friday, Nifty futures added around 4% of open interest as long buildup whereas Banknifty and Finnfity futures shed around 5% & 1% of open interest respectively as short covering.

Majority of F&O sectors settled higher. Amongst them, IT, Finance and Auto stocks witnessed maximum addition of long positions whereas some short covering was seen among Realty and Chemical stocks.

On options front, put writing was seen at multiple strikes along with call at 19000 and higher strikes and maximum positions are at 18700 PE and 18800 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 6991 Cr in the cash segment, bought stocks futures worth Rs 1295 Cr and also bought index futures worth Rs 2777 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 1319 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18950-19025; Supports 18830-18750

Banknifty – Resistances 44350-44550; Supports 43750-42500

Finnifty – Resistances 19600-19660; Supports 19400-19300


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