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


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