S&P 500 hits all-time high in historic bull run : Daily Market Update Equity 20 Jan 2024 | Globe Capital Market LTD.
S&P 500 hits all-time high in historic bull run : Daily Market Update Equity 20 Jan 2024

Wall Street ended the week on a positive note, with stocks closing at all-time highs on speculation the Federal Reserve will start cutting rates this year — bolstering the outlook for Corporate America. Another rally in the S&P 500’s most-influential group — technology — drove the gauge to a record for the first time in two years. Fueled by hopes the artificial-intelligence boom will keep powering the market higher, the benchmark topped 4,800 — defying warnings that the rally remains concentrated in a narrower group of shares. “After a more than two-year wait, the stock market hit a new record high,” said Greg McBride at Bankrate. “Easing inflation pressures and the prospect of both lower interest rates and a soft economic landing have stoked investors’ appetite for risk.”

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 1% to 1.5%
  • Barring FTSE, other European equity markets settled on flat to negative note.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21700 levels (as on 8:30AM).


News highlights from across the globe

  • Japan’s headline inflation rate cooled to 2.6% from 2.8% in November while core inflation rate — which strips out prices of fresh food — fell to 2.3% from November’s 2.5%.
  • European Central Bank president Christine Lagarde signalled that borrowing costs would come down in the summer rather than spring.
  • Brent crude was trading 0.68% lower at $78.56 a barrel. Gold was higher by 0.30% at $2,029.49 an ounce.


Important news updates from the domestic front

  • Hindustan Unilever Q3 FY24 (Consolidated, YoY) – Revenue at Rs 15,567 crore vs Rs 15,597 crore, down 0.2%. Ebitda at Rs 3,666 crore vs Rs 3,694 crore, down 0.76%. Margin at 23.54% vs 23.68%, down 13 bps. Net profit at Rs 2,508 crore vs Rs 2,481 crore, up 1.08%.
  • Reliance Industries Q3 FY24 (Consolidated, YoY) – Revenue at Rs 2,25,086 crore vs Rs 2,31,886 crore, down 2.98%. Ebitda at Rs 40,656 crore vs Rs 40,968 crore, down 0.77%. Margin at 18.06% vs 17.66%. Net profit at Rs 17,265 crore vs Rs 17,394 crore, down 0.74%.
  • RBL Bank Q3 FY24 (Standalone, YoY) – NII at Rs 1,545.9 crore vs Rs 1,277.3 crore, up 21% (YoY). Net profit at Rs 233.1 crore vs Rs 208.9 crore, up 11.6% (YoY). GNPA at 3.12% vs 3.12% (QoQ). NNPA at 0.80% vs 0.78% (QoQ).
  • CESC Q3 FY24 (Consolidated, YoY) – Revenue at Rs 3,244 crore vs Rs 3,129 crore, up 3.67%. Ebitda at Rs 346 crore vs Rs 496 crore, down 30.25%. Ebitda margin at 10.66% vs 15.85%. Net profit at Rs 301 crore vs Rs 336 crore, down 10.41%. Board approves interim dividend of Rs 4.5 per share.
  • Tata Steel will commence statutory consultation as part of its plan to transform and restructure its U.K. business.
  • HFCL received a purchase order worth of Rs 623 crore from a telecom service provider for the supply of 5G telecom networking equipment.
  • Zee Entertainment issued a clarification on media reports of Sony’s board to take a call on a $10 bn merger with Zee Entertainment on Friday. It said that it is not aware of any board meeting held or proposed to be held by Sony India and added that the company is committed to the merger with Sony.
  • Fortis Healthcare unit Agilus Diagnostics received notice from Delhi’s anti-corruption bureau in the Mohalla Clinics’ case.


Nifty Overview & Outlook

Benchmark Nifty index ended on a positive note and close above 21600 levels, added over 150 points to its previous closing values after a highly volatile trading session.

Broader markets outperformed the benchmark as Mid and Small cap index gained 1.39% and 1.52% respectively; resultant, strong market breadth.

All the sectoral indices, barring Media and Private Bank index, tracked at NSE settled in green. Amongst them, Oil & Gas index  gained maximum, up over 1.5% followed by Nifty Auto, FMCG, Metal, PSU Bank index settled higher by 1% each.

Going ahead, we expect Nifty index to trade with sideways to negative bias and suggest traders to maintain sell on rise trading strategy till it is trading below 21750 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by 1%, no significant changes was seen in BankNifty and Finnifty futures on price front whereas Banknifty open interest increased by 3% and Finnifty open interest decreased by 7.1%.

On the sectoral front, long buildup observed in Infrastructure, Oil & Gas,Telecom and Cement stocks, whereas short covering was seen in Automobile and Chemicals stocks.

On options front, call writing along with put was seen at multiple strikes and maximum positions are at 22500 CE closely followed by 22000 CE and 20500 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3690 Cr in the cash segment, bought stocks futures worth Rs 4795 Cr and sold index future worth Rs. 1057 Cr. DIIs were net buyer in the cash segment to the tune of Rs 2638 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21770-21900; Supports 21530-21400

Banknifty – Resistances 46540-47000; Supports 45555-45070

Finnifty – Resistances 20600-20760; Supports 20420-20270





Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX 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 and Research Analyst. 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.

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. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

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.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.