Daily Market Update- Equity 2 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 2 Aug 2023

The benchmark Nifty index witnessed a range bound trading session and ended the day on a negative note at 19733 levels, down 20 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended mixed .
  • European equity ended on negative note.
  • Asian markets are trading negative.
  • GIFT Nifty is indicating a gap down opening for Nifty index as it is trading down by 50 points (as on 8:35AM)


News highlights from across the globe

  • Sentiment going into Wednesday has been downbeat, with stock futures for Hong Kong, Japan and Australia all lower. The S&P 500 stocks benchmark declined after Fitch Ratings downgraded the U.S. ahead of the open of Asian markets.
  • The S&P 500 and Nasdaq 100 fell 0.3% and 0.4%, respectively. The S&P 500 finished Tuesday’s session with a small loss as the rally that drove the stock market up almost 30% from its October lows took a breather.
  • The move by Fitch to downgrade the US to AA+ from AAA comes after major political battles over the nation’s borrowing and repeated standoffs over raising the debt limit.
  • Brent crude was trading below $85 a barrel the yield on the 10-year U.S. bond was trading at 4.01%


Important news updates from the domestic front

  • DLF’s promoter, Kushal Pal Singh, sold 1.44 crore shares, representing its entire 0.59% stake in the company. The shares were sold via bulk deal for Rs 504.21 apiece.
  • Zee Entertainment said IDBI Bank has challenged NCLT’s order before NCLAT. NCLT had dismissed an application filed under Section 7 of IBC, 2016, by IDBI Bank against the company on May 19, 2023.
  • Hero MotoCorp: The Enforcement Directorate officials have visited two of the company’s offices in Delhi and Gurugram and also visited the residence of Executive Chairman Pawan Munjal.
  • Bharti Airtel: The company has launched a pre-paid marketing communications platform through which businesses can send personalised communications to pre-defined customers.
  • State Bank of India raised Rs 10,000 crore through non-convertible, fully paid-up long-term bonds in the nature of debentures of face value of Rs 1 lakh each at a coupon of 7.54%.
  • Power Grid Corporation of India approved an investment proposal for an 85 MW Solar PV power project at Nagda, MP, for an estimated cost of Rs 554.91 crore.


Nifty Overview & Outlook

The benchmark Nifty index witnessed a range bound trading session and ended the day on a negative note at 19733 levels, down 20 points from its previous closing values.

Small cap index outperformed the broader market as it was up by 0.68% while Midcap index ended on a flat to negative note.

Performance on the sectoral front was mix. Amongst them, Nifty IT Index was at the top of the tally, rose over 1%. On the other hand, Realty index led the decline, fell 1.77%.

Going ahead, we reiterate our short term sideways view on Nifty index and suggest traders to maintain buy on dips trading strategy till index is holding above 19500 levels on closing basis. Medium term and long term trend are still positive.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty futures as open interest decreased by 1.3%. On the other hand, short build up was observed in Banknifty futures and Finnifty futures with an increase in open interest by 1.3% and 20.1 % respectively.

On the sectoral front, fresh long buildup was seen among Metals, Power and Textile stocks, fresh short build up was seen among Capital Goods, Infrastructure, Media and Realty shares while short covering was seen among Chemicals and Technology shares.

On options front, call writing was seen at multiple strikes and maximum positions are at 19800 CE and 19600 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 93 Cr in the cash segment, sold stocks futures and index futures worth Rs. 858 Cr and Rs 45 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1036 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19880-19960; Supports 19635-19565

Banknifty – Resistances 46080-46210; Supports 45490-45400

Finnifty – Resistances 20500-20560; Supports 20260-20180


F&O stocks in ban today: HINDCOPPER,IBULHSGFIN, PEL




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