India-Canada feud threatens chill over billions in investments - Daily Market Update- Equity 20 Sep 2023 | Globe Capital Market LTD.
India-Canada feud threatens chill over billions in investments – Daily Market Update- Equity 20 Sep 2023

A diplomatic fight between Canada and India over the murder of a Sikh leader threatens to put a freeze on growing economic ties between the two countries, which are far wider than the flow of goods being shipped across the Pacific. India is a relatively small buyer of Canadian commodities, but it’s a huge factor in the education sector — it’s by far the largest source of foreign students attending Canada’s colleges and universities. Meanwhile, the biggest Canadian public pension managers have poured tens of billions of dollars into Indian companies and projects, including renewable energy, infrastructure and banks.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.22% to 0.31%
  • European equity markets ended on flat to negative note.
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is up by 18 points (as on 8:30AM), Nifty futures likely to open around 20082 levels.


News highlights from across the globe

  • Equity markets in Asia are trading lower after U.S. stocks posted modest losses ahead of the Federal Reserve’s policy decision, with traders betting interest rates will be higher for longer to curb inflation.
  • U.S.-listed Chinese stocks fell the most in nearly two weeks on Tuesday. Brent oil briefly topped $95 a barrel, adding to inflation concerns. Fed Chair Jerome Powell and his colleagues are widely expected to hold rates Wednesday.
  • Brent Crude prices slipped below $94 a barrel and the yield on the 10-year U.S. bond was trading at 4.36%.


Important news updates from the domestic front

  • Tata Motors will increase prices of commercial vehicles by up to 3% w.e.f. October 1. The price increase is to offset the residual impact of the past input costs, and will be applicable across the entire range of commercial vehicles.
  • Union Bank Of India: The government extended Nitesh Ranjan’s term as the bank’s executive director by two years. His current term expires on March 9, 2024.
  • Biocon appointed Peter Bains as Biocon Group CEO with immediate effect. He will be reporting directly to Group Chairperson Kiran Mazumdar-Shaw.
  • Bank of Maharashtra has signed an MoU with the Indian Renewable Energy Development Agency to promote and facilitate co-lending and loan syndication for a diverse spectrum of renewable energy projects across the country.
  • NBCC has won a Rs 150 crore order from Khadi & Village Industries Commission to construct office buildings, residential campus, redevelopment, repair and renovation of KVIC properties across India.
  • JK Lakshmi Cement will acquire 20.8% stake in Amplus Helios for Rs 21.6 crore to source 40 MWAC solar power for its Durg unit under the captive power plant mode.
  • Blue Star QIP to raise up to Rs 1,000 crore opened Sept. 18. The floor price for QIP set at Rs 784.55 per share.


Nifty Overview & Outlook

The benchmark Nifty index settled marginally lower at 20133 levels after a cut of 59 points from its previous closing values.

Broader markets too fell in line with benchmark as mid and Small Cap index fell 0.35% & 0.54% respectively.

Performance on the sectoral front was mix. Realty, Media and Metal index were the worst performers, fell in range 1% to 1.37%. On the other hand, PSU Bank index led the advances, gained over 3%.

Technically, Nifty index is well placed on multiple chart frames. However, possibility of some profit taking cannot be ruled out at this juncture. Hence, we suggest traders to maintain buy on dips trading strategy and follow stocks specific trading approach.


Derivatives Overview & Outlook

On Monday, long unwinding was seen in Nifty, Banknifty and Finnifty futures with decrease in open interest by 1.6%, 5.4% and 5.8% respectively.

On sectoral front, long buildup was seen in Automobile whereas short buildup was seen in Capital Goods, Cement, Metal, Pharma, Realty and Telecom stocks. Long unwinding was seen in Infrastructure and Technology stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 20100 PE and 20200 CE.


Institutional Trading Activity

Monday, FIIs sold stocks worth Rs 1237 Cr in the cash segment, sold stocks futures and index future worth Rs 535 Cr and Rs 331 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 553 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 20300-20350; Supports 20050-19950

Banknifty – Resistances 46400-46500; Supports 45650-45450

Finnifty – Resistances 20600-20700; Supports 20250-20150


F&O stocks in ban today:



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