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

The benchmark nifty index extended losses for the second consecutive session and settled below 18500 levels, down 47 points from its previous closing values after highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.47 to 1.28%
  • European equity markets also ended higher in range 0.5 to 1.2%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is up by 75 points (as on 8:25AM)


News highlights from across the globe

  • Asian Equity markets are trading higher after a renewed rally in tech giants pushed Wall Street higher, with focus turning to Friday’s jobs report amid bets the Federal Reserve will pause its interest-rate hikes in June.
  • The yield on 10-year treasuries in the U.S. was trading at 3.60%. Crude advanced to trade around $74-mark


Important news updates from the domestic front

  • Coal India: The government will exercise the greenshoe option in the offer for sale and offload another 9.24 crore shares on the second day after the issue was subscribed 3.46 times on the first day.
  • Aditya Birla Capital will raise Rs 1,250 crore via preference issue of 6.06 crore shares to Grasim Industries and 1.51 crore shares to Surya Kiran Investment, respectively, at Rs 165.1 apiece.
  • AstraZeneca Pharma India has received permission from Central Drugs Standard Control Organisation to import, sell and distribute Tremelimumab (Imjudo) concentrate, used in the treatment of patients with liver disease unresectable hepatocellular carcinoma.
  • NHPC signed an MoU with Nepal’s Vidhyut Utpadan Company for the joint development of 480 MW Phukot Karnali hydroelectric project in the Kalikot district of Karnoli province of the neighboring nation.
  • SJVN signed a project development agreement for the 669 MW Lower Arun Hydro Electric Project in Nepal. The company is also developing a 217 km long associated transmission network for power evacuation and export to India.
  • NTPC Green Energy, a wholly owned subsidiary of NTPC, signed a deal with Uttar Pradesh Rajya Vidyut Utpadan Nigam to develop renewable energy parks and projects in the state.
  • Can Fin Homes: Deputy Managing Director Amitabh Chatterjee, who was deputed from Canara Bank, resigned on June 01, 2023, due to his repatriation and transfer back to Canara Bank.
  • Tata Motors reported a 2% decline year-on-year in domestic sales performance at 73,448 units during May. Domestic passenger vehicle sales grew 6% on the year, while commercial vehicle sales dipped 12% year-on-year.


Nifty Overview & Outlook

The benchmark nifty index extended losses for the second consecutive session and settled below 18500 levels, down 47 points from its previous closing values after highly volatile trading session.

Mid and Small cap index outperformed the benchmark, up 0.21% & 1% respectively; resultant, market breadth was slightly tilted towards the advancing side.

Performance on the sectoral front was mix. Nifty Pharma and Realty were the top performers, rose over 1% each. On the other hand, Nifty Bank and Financial Services index witnessed some selling pressure, down 0.77 & 0.63% respectively.

Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is holding above 18200 levels on closing basis and suggest traders to maintain buy on dips trading strategy.


Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 4% of open interest as long unwinding; Banknifty & Finnifty futures added around 4% & 9% of open interest respectively as short positions.

On sectoral front, short buildup was seen among Metals and Chemical stocks whereas some short covering was seen among Telecom and Realty stocks along with long buildup among Cement stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 18500 PE and 19500 CE closely followed by 18600 CE. Banknifty futures will start the new contract with maximum positions at 43000 PE and 44000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 71 Cr in the cash segment, bought stocks futures worth Rs 446 Cr and also bought index futures worth Rs 2183 Cr. DIIs were net buyers in the cash segment to the tune of Rs 489 Cr.


Nifty Futures, Banknifty Futures & Finnifty Futures Key Levels

Nifty – Resistances 18650-18750; Supports 18500-18400

Banknifty – Resistances 44300-44500; Supports 43750-43450

Finnifty – Resistances 19500-19600; Supports 19350-19260


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