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

The benchmark Nifty index ended lower for the third straight day and settled at 18130 levels, down 50 points from its previous closing values after the lackluster trading session.

Overview and Outlook

Global Market Update

  • US equity markets settled higher in range 0.34 to 1.51%
  • European equity markets were up in range 0.25 to 1.31%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is trading up by 30 points (as on 8:20AM)


News highlights from across the globe

  • Asian Equity markets are trading higher with optimism that the US will be able to avert a first-ever default being tempered by evidence this week that China’s economic activity is losing steam.
  • Bond yields rose in Australia and New Zealand, after Treasury yields gained on speculation the Federal Reserve will need to keep interest rates higher for longer as inflation remains elevated. A Bloomberg gauge of the dollar advanced the most in two months.
  • Crude price dipped 1.6%, while gold price fell 1.2%


Important news updates from the domestic front

  • Pfizer: The company initiated a voluntary recall of all batches of Magnex, Magnex Forte, Zosyn, and Magnamycin after an out-of-specification was observed at the manufacturing facility of its contract manufacturer for the recalled products, Astral SteriTech. The recall will have an impact on the company’s revenue and profitability.
  • Nazara Technologies: Nodwin Gaming, a subsidiary of the company, signed definitive and binding agreements to raise $28 million (Rs 232 crore) from existing investors—Nazara, Krafton and JetSynthesys—and new ones.
  • Vedant Fashions: Promoter Ravi Modi Family Trust will exercise the oversubscription option in the ongoing offer for sale after the non-retail investors placed bids for 223.80% of the portion reserved for them on the first day. The promoter will offload a 2.88% additional stake under the greenshoe option.
  • Rail Vikas Nigam: The company has formed a joint venture, Indore MMLP Pvt., with National Highways Logistics Management and Madhya Pradesh Industrial Development Corporation to build multi-modal logistics parks under the Bharatmala Project. RVNL is receiving Rs 77.62 crore for rail connectivity, NHLML is receiving Rs 186.97 crore towards MMLP land, road connectivity and other works, and MPIDC is r
  • Wipro: The company entered a five-year business partnership with ServiceNow to invest in and introduce new offerings to the market to drive business transformation for clients.
  • South Indian Bank: The bank hiked the marginal cost of funds-based lending rates across tenures in the range of 5-10 basis points, effective May 20.
  • Rattanindia Enterprises: The company appointed Vinu Balwant Saini as chief financial officer, effective May 20.


Nifty Overview & Outlook

The benchmark Nifty index ended lower for the third straight day and settled at 18130 levels, down 50 points from its previous closing values after the lackluster trading session.

The Broader market underperformed the benchmark as Midcap and Small cap index were down 0.74% and 0.48% respectively.

Majority of sectoral indices tracked at NSE settled lower. Amongst them, Nifty Realty lost maximum, down over 2% followed by Nifty PSU Bank, Pharma and FMCG index that were down in range 1% to 2%.

Technically, Nifty index ended on a weak note and formed a bearish red candlestick on a daily chart. Going ahead, cross and sustenance below 18100 levels will be a negative development and might take it towards 17900 levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures remained almost unchanged on price front and added around 1%, 3% & 8% of open interest respectively.

All F&O sectors settled lower. Amongst them, Telecom, Cement, Metal and Chemical stocks witnessed maximum addition of long positions.

On options front, call writing (25th Mar Contract) was seen at multiple strikes and maximum positions are at 18200 CE and 18000 PE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 970 Cr in the cash segment, sold stocks futures worth Rs 1140 Cr and bought index futures worth Rs 656 Cr. DIIs were net sellers in the cash segment to the tune of Rs 850 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18250-18350; Supports 18100-18000

Banknifty – Resistances 44050-44250; Supports 43600-43400


Important Results: JSW Steel, NTPC, Punjab National Bank, Power Grid Corporation of India, Glenmark Pharmaceuticals, Muthoot Finance, Bandhan Bank, Alkem Laboratories, Zomato, Delhivery, JK Lakshmi Cement, Crompton Greaves Consumer Electricals, IRB Infrastructure Developers, Abbott India, Narayana Hrudayalaya, EPL, Route Mobile, Sun TV Network


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