Daily Market Update- Equity 20 Jan 2023 | Globe Capital
20-Jan-2023
Daily Market Update- Equity 20 Jan 2023

Nifty index settled on flat to negative note after a lackluster trading session, closed shop at 18107 levels, down 57 points.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.76 to 0.96%
  • European equity markets were down in range 1% to 1.89%
  • Asian equity markets are trading mix
  • SGX Nifty is little changed, up 25 points (as on 8:27 AM)

 

News highlights from across the globe

  • Asian markets were set for a mixed open on Friday after US benchmarks declined for a third day as risks like rising interest rates, economic growth and earnings kept sentiment in check.
  • Australian and Japanese shares were little changed while Hong Kong was set for gains. The selloff in US stocks showed some signs of easing, with the S&P 500 ending down 0.8% on Thursday and less than the 1.6% slide a day earlier.
  • Crude prices rose more than 1%, and Bitcoin was up to trade above $21,000-level.

 

Important news updates from the domestic front

  • Vedanta: The company approved sale of assets of subsidiary Zinc International to Hindustan Zinc for $2,981 million.
  • Sun Pharmaceuticals Industries: The company acquired U.S.-based alopecia medicine manufacturer Concert Pharmaceuticals for $576 million
  • Tata Consultancy Services: The company has been selected as the a strategic partner by Bombardier to accelerate its digital transformation.
  • Surya Roshni: The company won an order worth Rs 147.30 crore for API 5L grade coated pipes from IOCL and powder coated GI pipes from GAIL.
  • Bata India: The company appointed Anil Somani as chief financial officer. The date of appointment will be announced in due course.
  • Jubilant FoodWorks: The company will spend Rs 900 crore on capex over the next 12-18 months, funded via internal accruals. The company will invest Rs 500-600 crore on stores and Rs 300 crores on commissaries.
  • L&T Technology Services: The company has been selected as strategic engineering partner to Airbus for advanced capabilities and digital manufacturing services under a multi-year contract.
  • Bharat Heavy Electronics: The company has bagged an order worth Rs 300 crore for renovation and modernisation of steam turbines at Ukai Thermal Power Station in Gujarat.

 

Nifty Outlook

Nifty index settled on flat to negative note after a lackluster trading session, closed shop at 18107 levels, down 57 points.

Broader markets too performed in line with benchmark, Mid cap index ended flat while Small cap index was down 0.49%, leading to weak market breadth.

Majority of sector gauges tracked at NSE settled in red, Media and FMCG index lost maximum, down 1% and 0.86% respectively while PSU Bank & Oil & Gas index saw some buying interest.

Nifty index is trading in range 17750-18250, any meaningful move is possible only when that range is crossed and sustained on closing basis, until then, the benchmark will continue to consolidate.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 4% of open interest as long unwinding whereas Banknifty futures added around 5% of open interest as short buildup.

Majority of F&O sectors settled lower. Amongst them, Power, FMCG and Infra stocks witnessed maximum addition of short positions whereas some long buildup was seen among Metal stocks.

On options front, Nifty will start the final expiry week of January contract with maximum positions at 18000 PE and 18500 CE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 400 Cr in the cash segment, sold stocks futures worth Rs 667 Cr and also sold index futures worth Rs 383 Cr. DIIs were net sellers in the cash segment to the tune of Rs 129 Cr.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Open Account