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

The benchmark Nifty index opened with a gap on the higher side, failed to hold at the higher levels and settled lower at 18755 levels after a cut of 70 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were closed yesterday
  • European equity markets settled lower in range 0.71% to 1%
  • Asian equity markets are trading in red
  • SGX Nifty is down by 65 points (as on 8:25AM)


News highlights from across the globe

  • Asian equity markets are trading lower on Tuesday as the rally in global equities shows signs of wavering and investors fret over China’s tepid post-pandemic recovery.
  • Monday’s slump in tech companies in China including Alibaba Group Holding Ltd, JD.com Inc. and Baidu Inc. underscores the pressure on the market, particularly for big tech firms.
  • Brent crude was trading around $76 a barrel and  the yield on the 10-year U.S. bond was trading at 3.76%


Important news updates from the domestic front

  • InterGlobe Aviation/Air India: IndiGo places a 500-aircraft order with Airbus SE, surpassing the recent historical 470-aircraft order of Air India in March. IndiGo’s now 1,000 aircraft order book comprises a mix of A320NEO, A321NEO, and A321XLR aircraft.
  • HDFC has sold a 90% stake in HDFC Credila to a consortium of Baring Private Equity Azia and ChrysCapital for Rs 9,060.4 crore. HDFC Credila will receive additional fresh capital of Rs 2003.61 crore as a part of the proposed transaction. The company will hold less than a 10% stake in Credila post-stake sale.
  • HDFC AMC: Abrdn Investment Management will exit the company as its promoter through the sale of its 10.2% stake. It will offer 2.17 crore shares in the price range of Rs 1,800-1,892.45 apiece, representing a discount of up to 4.9% on Monday’s closing price.
  • ITC will acquire a further stake in Mother Sparsh through 857 Compulsorily Convertible Preference shares of Rs. 10/- each. Its stake in Mother Sparsh will increase from 22% to 26.50% (on a fully diluted basis).
  • Timken India: Timken Singapore will offer 6.3 million shares of Timken India at the floor price of Rs 3,000 apiece, representing a discount of up to 14% on Monday’s closing price. The seller has a 90 days lock up.
  • IIFL Securities: SEBI barred the company from onboarding any new client for two years in respect of its business as a stockbroker. Funds of its credit balance clients’ were used to not only fund trades of its debit balance clients but also to fund its own trades, it said. However, the company plans to appeal before SAT against SEBI order.
  • Can Fin Homes approved fund raise of Rs 5,000 crore. It’ll raise Rs 4,000 core via issuance of on-shore and/or off-shore debt instruments and Rs 1,000 crore via QIP, preferential allotment or rights issue or a combination thereof.
  • Sun Pharmaceuticals announced Health Canada Approval of PRWINLEVI (clascoterone cream 1%) for Topical Treatment of acne in patients 12 years of age and older.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, failed to hold at the higher levels and settled lower at 18755 levels after a cut of 70 points from its previous closing values.

Broader markets outperformed the benchmark as Mid & Small Cap index settled on a flat to positive note against 0.37% decline in the frontline index.

Majority of sectoral indices tracked at NSE settled in red. Nifty Pvt Bank, Media, Realty, Auto and FMCG Index were down in range 0.50% to 0.90% each. On the other hand, Nifty PSU Bank was at the top of the tally gained nearly 1%.

Technically, Nifty settled on a weak note and formed a bearish red candlestick on a daily chart. The immediate resistance for Nifty index is placed around 18880 levels and support is around 18400 levels. Our bullish view is intact until it is holding above the said support levels on a closing basis


Derivatives Overview & Outlook

Yeterday, Nifty futures shed around 1% of open interest as long unwinding whereas Banknifty and Finnfity futures added around 1% & 11% of open interest respectively as short buildup.

On sectoral front, short buildup was seen among Infra and Oil & Gas stocks whereas some long buildup was seen among Finance and Pharma stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18700 PE and 19000 CE closely followed by 18800 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1031 Cr in the cash segment, sold stocks futures worth Rs 1883 Cr and also sold index futures worth Rs 1325 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 365 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18950-19025; Supports 18750-18680

Banknifty – Resistances 44000-44350; Supports 43550-42350

Finnifty – Resistances 19575-19660; Supports 19400-19300


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