Daily Market Update- Equity 21 Feb 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 21 Feb 2023

Nifty index settled lower at 17844 levels, down 100 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US markets were closed yesterday
  • European equity markets ended on flat note
  • Asian equity markets are trading mix
  • SGX Nifty is little changed ( as on 8:20 AM)


News highlights from across the globe

  • Asian markets saw a muted open on Tuesday while the U.S. equity futures fell as investors weighed the prospect that central banks will have to tighten policy settings more than expected to tame inflation.
  • The yield on 10-year Treasuries advanced to 3.85%. Crude prices were trading around $84-marK.


Important news updates from the domestic front

  • Adani Enterprises: The company’s subsidiaries—Ambuja Cement and ACC—and transporters in Himachal Pradesh reached an amicable solution to the dispute between them over freight rates. This clears the way for reopening of cement factories in Darlaghat and Barmana after 67 days.
  • Bharat Petroleum Corporation: The company is planning to raise Rs 1,500 crore via private placement of unsecured non-convertible debentures.
  • Bharat Electronics: India’s first ever indigenously developed train control and supervision system, jointly developed by the company and Delhi Metro Rail Corporation was launched for operations on the Red Line corridor of Delhi Metro.
  • BEML: The company signed an MoU with a Delhi Metro Rail Corporation-led special purpose vehicle that has been shortlisted for constructing the first phase of Bahrain Metro Rail Project. BEML will manufacture and supply metro rolling stock, while DMRC will offer its expertise in project development, budgeting and facilitation of contractual obligations.
  • Asian Paints: The company’s wholly owned subsidiary Asian Paints (Polymers) signed an agreement with the Gujarat government to set up a manufacturing facility for vinyl acetate ethylene emulsion and vinyl acetate monomer at Dahej.
  • JK Tyre & Industries: The company will raise Rs 240 crore by issuing 24,000 compulsorily convertible debentures at the face value of Rs 1 lakh to International Finance Corporation on private placement basis. The amount raised can be converted into equity shares of the company at a conversion price of Rs 180.50.


Nifty Outlook

Nifty index settled lower at 17844 levels, down 100 points from its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were down 0.13% and 0.34% respectively. Market breadth was inclined towards the declining side as 1447 declines were recorded against 823 advances at NSE.

Majority of sectoral indices tracked at NSE settled lower. Amongst them, Bank index was the worst performer, down over 1% followed by Financial Services and Energy index that was down 1% each.

Technically, Nifty index is trading in a broader congestion range 18150-17600 levels. At current juncture, immediate support is placed around 17600-17700 spot levels while immediate resistance is placed around 18100 levels. Either side breach from this range will open the doors for next directional move in that direction.


Derivatives Overview & Outlook

Yesterday, both Nifty and Banknifty futures added around 2% & 4% of open interest respectively as short buildup.

On sectoral front, short buildup was seen among Infra, Media and Telecom stocks whereas some long buildup was seen among Cement and IT stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18000 CE and 17500 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 159 Cr in the cash segment, sold index futures worth Rs 689 Cr and bought stocks futures worth Rs 725 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 86 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17930-18000; Supports 17800-17700

Banknifty Futures – Resistances 41050-41320; Supports 40500-40200


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