Daily Market Update- Equity 2 Jan 2023 | Globe Capital
02-Jan-2023
Daily Market Update- Equity 2 Jan 2023

Steep selloff in the final half an hour of trading lead Nifty index close near the day’s low at 85 points at 18105 levels.

Overview and Outlook

Global Market Update

  • US equity markets settled on flat to negative note on the final trading session of th year
  • European equity markets were down in range 0.8 to 1.5%
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is down 45 points (as on 8:18 AM)

 

News highlights from across the globe

  • China’s Covid trajectory and global cues are expected to guide Indian markets in the first week of 2023.
  • U.S. stocks fell on the last trading day of 2022 on Friday, closing out the worst year in more than a decade for global equities and bonds.

 

Important news updates from the domestic front

  • India’s current account deficit, widened to a record; rupee movement and crude prices are likely to have a bearing on stocks as markets open on Jan. 2. Foreign portfolio flows will also be in focus.
  • Auto Stocks: Maruti Suzuki India, Tata Motors, Eicher Motors, Escorts Kubota in focus on December automotive sales numbers.
  • New Delhi Television: The board approved the appointment of Aman Kumar Singh as non-executive, non-independent director, and Sunil Kumar as independent director. The board also approved applications from founders Radhika Roy and Prannoy Roy for re-classifying them from promoter to public shareholders.
  • Tata Motors: The company will complete the acquisition of Ford India’s Sanand plant and onboard all eligible employees of the facility on Jan. 10, 2023.
  • REC/Adani Transmission: REC will sell entire shareholding of WRSR Power Transmission to Adani Transmission.
  • Religare Enterprises: The company signed a one-time settlement agreement with 16 lenders for full and final settlement for all withstanding of its subsidiary Religare Finvest. The NBFC will seek removal of corrective action plan imposed by the Reserve Bank of India.
  • Tata Consultancy Services: The board will consider the financial results for the quarter ended December 2022 and interim dividend on Jan. 09, 2023.
  • Hero MotoCorp: The company started deliveries of Vida V1 scooter, its first electric vehicle.
  • Punjab & Sind Bank: The board approved raising Rs 250 crore within 12 months via issue of equity shares and/or Basel III compliant bonds.
  • NMDC: Life Insurance Corporation of India reduced its shareholding in the company to 13.7% from 15.77%.
  • Bandhan Bank: The bank transferred its group loan and small business and agriculture loan technical written-off portfolio amounting to Rs 8,897 crore to an ARC for a consideration of Rs 801.00 crore.
  • Adani Power: The company said the timeline for the completion of the Rs 7,017-crore deal to acquire thermal power assets of DB Power Ltd has been extended till January 15, 2023.

 

Nifty Outlook

Steep selloff in the final half an hour of trading lead Nifty index close near the day’s low at 85 points at 18105 levels.

Broader markets performed in line with benchmark, Mid & Small cap index settled 0.62% and 0.82% higher respectively.

Sector performance was mix, FMCG & Bankex lost maximum, down 0.76% and 0.6% respectively while PSU bank & Realty index were at the top of the tally, up 1.5% and 0.95% respectively.

Nifty index is trading in range 18000-18250 levels, an either side break will lead to next directional move in that direction.

 

Derivatives Overview & Outlook

On Friday, no significant activity was seen in Nifty & Banknifty futures on open interest front.

On sectoral front, long buildup was seen among Finance, Banking, Metals and Oil & Gas stocks whereas short buildup was seen among FMCG and Pharma stocks.

On options front, call writing was seen at 18200 & 18300 strikes along with put writing at 17800 strikes and maximum positions are at 18000 PE and 18200 CE.

 

FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 2511 Cr in the cash segment, bought stocks futures worth Rs 136 Cr and bought index futures worth Rs 2524 Cr. DIIs were net buyers in the cash segment to the tune of Rs 5063 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18300-18375; Supports 18150-18070

Banknifty Futures – Resistances 43400-43700; Supports 43000-42750

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