Powell signals Fed to stay on hold and keep future hike on table - Daily Market Update- Equity 20 Oct 2023 | Globe Capital Market LTD.
Powell signals Fed to stay on hold and keep future hike on table – Daily Market Update- Equity 20 Oct 2023

Federal Reserve Chair Jerome Powell suggested the US central bank is inclined to hold interest rates steady again at its next meeting while leaving open the possibility of a future hike if policymakers see further signs of resilient economic growth. The Fed chief also said a recent run-up in long-term Treasury yields, if they persist, could lessen the need for further hikes “at the margin,” echoing his colleagues and underscoring the importance of tightening financial conditions to the rate outlook over the coming months.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.75% to 0.96%
  • European markets too ended on a negative note.
  • Asian equity markets are also trading in red.
  • GIFT Nifty is trading down by 31 point, Nifty futures likely to open around 19525 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets fell as volatility gripped Wall Street with traders looking wary of a potential escalation of the Middle East conflict, while weighing Federal Reserve chairman Jerome Powell’s remarks for clues on the policy outlook.
  • The S&P 500 notched its third straight loss, weighed by disappointing Tesla Inc. earnings. Early Asian trading for U.S. share futures slipped while the dollar edged higher.
  • Brent crude was trading at $93 a barrel and the yield on the 10-year US bond was trading at 4.98%.


Important news updates from the domestic front

  • Grasim Industries received a Rs 141 crore demand notice from the Rajasthan Stamps Collector for non-payment of stamp duty on a scheme of arrangement between Indian Rayon and the company from FY1999.
  • Indoco Remedies: A U.S. FDA inspection at the company’s Solid Oral Formulation facility ended with four observations. The U.S. FDA conducted a pre-approval inspection at the Goa facility from Oct. 12 to 18.
  • Natco Pharma: U.S. FDA inspection at Natco Pharma’s Hyderabad facility ended with eight observations. Inspections were conducted between Oct. 9 to 18.
  • Tata Steel: NCLT approves the merger of Tata Steel and Tata Steel Long Products. Tata Steel is also set to acquire a 26% stake in unit TP Vardhaman Surya for Rs 1.3 lakh.
  • RVNL: RVNL JV gets a Rs 174.27 crore contract from the Vadodara Division of Western Railway for civil engineering works in Gujarat. The project is to be executed in 24 months.
  • Tejas Networks received an order worth Rs 107.73 crore from TCS to supply equipment for BSNL’s Pan-India 4G and 5G networks.
  • Tata Motors signed a Securities Subscription Agreement for acquiring a 26.79% stake in Freight Tiger for Rs 150 crore. SSA includes provisions allowing the company to invest an additional Rs 100 crore over the next two years.
  • Elecon Engineering got an order for supply and supervision of a pipe conveyor system from Arcelormittal Nippon Steel India worth Rs 51.41 crore.
  • CCL Products: NCLT has sanctioned the scheme of arrangement between Continental Coffee Pvt. (the demerged company) and CCL Products (India) (the resulting company).


Nifty Overview & Outlook

The benchmark Nifty index extended losses for the second consecutive trading session and settled at 19624 levels, down 46 points from its previous closing values.

The broader markets performed slightly better than the benchmark as Mid & Small cap index settled on a flat to positive note against 0.24% decline in the frontline index.

Performance on the sectoral front was mix. Metal and Oil & Gas index led the declines, fell 0.88% and 0.53% respectively. On the other hand, Nifty Auto was the top gainer, rose just over 0.50%.

Nifty index is trading in a narrow range i.e. 19400-19850 levels for past couple of sessions. Going ahead, we expect it to trade sideways till it is trading in the above mentioned trading range either side break from the range will drive the market in that direction.


Derivatives Overview & Outlook

Yesterday, Nifty futures remained almost unchanged on the price as well as on open interest front while Banknifty and Finnifty futures fell on long unwinding as open interest shed by 4.7% and 3.7% respectively.

On sectoral front, long buildup was seen in Automobile, Cement and Textile stocks whereas short buildup was seen in Capital goods, Infrastructure, Oil & Gas and Pharma stocks. Initial sign of long unwinding was seen in Banking and Power stocks.

On options front, Nifty will start the last contract of October series with maximum positions at 19500 PE and 19800 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1093 Cr in the cash segment, bought stock future worth Rs 593 Cr and sold index futures worth Rs 392 Cr. DIIs were net buyer in the cash segment to the tune of Rs 736 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19700-19770; Supports 19500-19410

Banknifty – Resistances 44200-44400; Supports 43550-43200

Finnifty – Resistances 19850-19960; Supports 19550-19450






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.