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

Nifty continue to close higher for a second successive day, settled at 17100 after adding 114 points to previous closing values after a highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.74 to 1.19%
  • European equity markets were also down over 1%
  • Asian equity markets are trading in red
  • SGX Nifty is trading down by 70 points (as on 8:30 AM)


News highlights from across the globe

  • Swiss investment bank UBS announced the take over of its beleaguered compatriot Credit Suisse in a deal backed by the Swiss government.
  • UBS will pay CHF 3 billion ($3.2 billion) in an all-stock deal to acquire Credit Suisse, according to a Bloomberg report. Credit Suisse’s market capitalisation stood at $8 billion as of close on March 17.
  • The yield on 10-year treasuries were trading at 3.50%. Crude prices were trading around $73-mark.


Important news updates from the domestic front

  • Tata Consumer Products: The company ceased negotiations with Bisleri with over a potential transaction. It said no definitive agreement or binding commitment has been signed on this matter.
  • NTPC: The Cabinet Committee on Economic Affairs exempted NTPC’s investment in NTPC Green Energy from extant guidelines of delegation of power to Maharatna CPSEs, allowing the company to invest over the prescribed limit.
  • HDFC: The RBI imposed a monetary penalty of Rs 5 lakh on the company on account of certain regulatory violations. The company said it will take necessary steps to comply with the order.
  • Rail Vikas Nigam: The company was selected as the lowest bidder for a composite package of four contracts related to the new broad gauge railway line of Haryana Orbital Rail Corporation project, jointly worth Rs 1,088.49 crore.
  • Havells India: The company started commercial production of air conditioners at its facility in Sri City, located in Chittor district of Andhra Pradesh.
  • Bharat Petroleum Corporation: Krishnakumar Gopalan was appointed, and has taken over the charge, as chairman and managing director of the company.
  • Aditya Birla Fashion and Retail: Credit rating agency Crisil revised its rating for the company’s lon-term loans to ‘AA+’ from ‘AA’, with outlook at stable.


Nifty Outlook

Nifty continue to close higher for a second successive day, settled at 17100 after adding 114 points to previous closing values after a highly volatile trading session.

Nifty Midcap underperformed the benchmark as it gained 0.39% against a 0.67% gain in the frontline index while Small cap performed in line with the benchmark.

Performance on the sectoral front was mix. Realty and Metal Index were at the top of the tally, rose 3.03% and 2.39% respectively. On the other hand, Nifty Media, pharma, and Auto indices led the decline dropped in the range of 0.5% to nearly 1%.

Technically, Nifty index is trading in a broader range 16850-17200 zone crossover and sustenance above from this range will set the tone for next directional move.


Derivatives Overview & Outlook

On Friday, Nifty, Banknifty and Finnifty futures shed around 1%, 2% and 8% of open interest respectively as short covering.

On the sectoral front, long buildup was seen among Textile and Finance stocks whereas some short buildup was seen among Media and Power stocks.

On options front, put writing was seen at 17000 strikes and maximum positions are at 17000 PE and 17800 CE closely followed by 17500 CE.


FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 2047 Cr in the cash segment, sold stocks futures worth Rs 3388 Cr and also sold index futures worth Rs 4525 Cr. DIIs were net buyers in the cash segment to the tune of Rs 9233 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17260-17350; Supports 17090-17000

Banknifty – Resistances 40100-40500; Supports 39500-39200


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