Jio Financial Services Ltd, the Reliance Industries' fintech business, is all set to list on the Indian exchanges on Aug. 21 - Daily Market Update- Equity 21 Aug 2023 | Globe Capital Market LTD.
Jio Financial Services Ltd, the Reliance Industries’ fintech business, is all set to list on the Indian exchanges on Aug. 21 – Daily Market Update- Equity 21 Aug 2023

The benchmark Nifty index ended on a negative note and settled lower at 19310 levels, down 55 points from its previous closing values after highly volatile trading session.

Overview and Outlook

Global Market Update

  • Barring Dow Jones, other US equity markets settled on flat to negative note
  • European equity markets ended lower in range of 0.39% to 0.66%
  • Asian equity markets are trading on a mixed note
  • GIFT Nifty is down by 12 points (as on 8:20AM), Nifty likely to open at 19318.


News highlights from across the globe

  • Investors will be focused on Chinese interest rates and Beijing’s efforts to bolster the struggling economy, before attention shifts later in the week to a gathering of global central bankers at Jackson Hole, Wyoming.
  • U.S. stocks gained some ground in the final minutes of Friday’s session in moves likely exacerbated by giant options expiration. But it wasn’t enough to prevent the S&P 500 ending unchanged and the Nasdaq 100 inching down. MSCI Inc.’s global equities benchmark notched its biggest weekly loss since the March meltdown of Silicon Valley Bank.
  • Brent crude was trading below $85 a barrel and the yield on the 10-year U.S. bond was trading at 4.25%.


Important news updates from the domestic front

  • KEC International secured new orders of Rs 1,007 crore across various businesses. The deals include construction of a multispeciality hospital in India, 380 kV overhead transmission line in the Middle East and supply of cables in India and overseas.
  • Jio Financial Services: Reliance Industries’ fintech business will list on the exchanges. The special pre-open session for the demerger of RIL resulted in JFSL being ascribed a value of Rs 261.85 per share.
  • Ashok Leyland would be issuing a corporate guarantee of GBP 82.10 million or Rs 870 crore to cover the lender facilities of U.K. two subsidiaries— Optare and Switch Mobility.
  • United Spirits signed an extra-neutral alcohol manufacturing contract with Capovitez for a tenure of three years. It covers provisions such as purchase of grain and sale of ENA, delivery, storage, quality in service, material’s price and payment, confidentiality, etc.
  • Tanla Platforms pact with Vodafone Idea for provision of platform and firewall services will not continue beyond the term limit. This would have a revenue impact of Rs 17 crore and PAT impact of Rs 9 crore on a full-quarter basis post November 2023.
  • Spandana Sphoorty Financial: Rating agency ICRA has upgraded the ratings and revised the outlook for various instruments. Long-term fund based for Rs 2,105 crore has been upgraded to [ICRA] A from [ICRA]A-, outlook to stable from positive.


Nifty Overview & Outlook

The benchmark Nifty index ended on a negative note and settled lower at 19310 levels, down 55 points from its previous closing values after highly volatile trading session.

Broader market underperform the benchmark as Small & Midcap index settled lower, down 0.53% and 0.45% respectively.

Performance on the sectoral front was mix. Amongst them, Nifty IT led the declines, fell nearly 1.5% followed by Healthcare , Pharma and Realty indices that were down over 0.50% each. On the other hand, Nifty Media index witnessed some buying interest, up by 0.65%.

Technically, Nifty index ended on a weak note and formed an indecisive candlestick on daily charts. Going ahead, we reiterate our sideways view on the Nifty index until it’s trading in range 19250- 19700 levels on a closing basis.


Derivatives Overview & Outlook

On Friday, Nifty and Banknifty futures shed around 3% & 1% of open interest respectively as long unwinding whereas Finnifty futures witnessed addition of short positions as it added around 2% of open interest as short buildup.

On the sectoral front, short buildup was seen among Finance, Oil & Gas and Telecom stocks whereas some long unwinding was seen among Banking, IT and Textile stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 19400 CE and 19300 PE..


Institutional Trading Activity

On Friday, FIIs sold stocks worth Rs 267 Cr in the cash segment, sold stocks futures worth Rs 2125 Cr and bought index futures worth Rs 1071 Cr. On the other hand, DIIs were net buyers in the cash segment to the tune of Rs 339 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19410-19475; Supports 19270-19210

Banknifty – Resistances 44200-44360; Supports 43700-43560

Finnifty – Resistances 19610-19660; Supports 19370-19280





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