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

The benchmark Nifty index extended gains for the fifth consecutive sessions and settled at new record highs near 20000 levels after adding 146 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended mix, Nasdaq was down over 2% while DOW was up by 0.47%
  • European equity markets settled higher in range 0.59% to 0.76%
  • Asian equity markets are trading mix
  • GIFT Nifty is little changed (as on 8:35AM), while indicating a gap down opening of Nifty index by more than 100 point.


News highlights from across the globe

  • Asian markets are trading mix as US equities and Treasuries fell after disappointing tech earnings and fresh signs of labor-market resiliency that could support another hike in interest rates this year.
  • The Nasdaq 100 scored its biggest drop in nearly five months, as Netflix Inc. fell on a disappointing revenue forecast and Tesla Inc. declined after profitability shrank in the second quarter.
  • Brent crude was below $80 a barrel and, the yield on the 10-year U.S. bond was trading at 3.85%


Important news updates from the domestic front

  • IndiaMart InterMesh: The board of the company has approved buyback of up to Rs 500 crore consisting of 12.5 lakh shares, representing 2.04% stake via tender offer. Buyback price will be Rs 4,000 per share, a premium of 38% over Thursday’s closing price.
  • Larsen & Toubro will consider share buyback, special dividend on July 25.
  • IndusInd Bank: The board of the bank approved raising Rs 20,000 crore via debt securities on private placement basis.
  • Jindal Stainless completed acquisition of Jindal United Steel by acquiring remaining 74% stake for Rs 958 crore, making JUSL a 100% owned subsidiary of JSL.
  • LTIMindtree announced strategic partnership with CYFIRMA to enhance the threat intelligence capabilities of its XDR platform. Larsen & Toubro, through its L&T Innovation Fund, recently invested in CYFIRMA in a pre-Series B round of funding.
  • Hindustan Aeronautics has signed Letter of Intent on co-operation for Light and Medium Utility Helicopters for the Armed Forces of Argentina.


Nifty Overview & Outlook

The benchmark Nifty index extended gains for the fifth consecutive sessions and settled at new record highs near 20000 levels after adding 146 points to its previous closing values.

The benchmark index outperformed the broader market as Midcap & Small cap index settled on a flat to positive note.

All sectoral indices, barring Nifty IT & Consumer Durable index, tracked at NSE settled in green. Amongst them, Nifty Pharma was at the top of the tally, gained nearly 1.5% followed by Nifty Bank, Financial Services, FMCG and Private Bank index settled over 1% higher.

Going ahead, we uphold our bullish view on Nifty index till it is holding above 19700 levels on a closing basis; however the possibility of some profit-taking can’t be ruled out at this juncture. Hence, we suggest traders to maintain a stock-specific trading approach and avoid over-leveraging.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures and Banknifty futures as both added 7.5% and 13% of open interest respectively whereas Finnifty futures open interest decreased by 6% on short covering.

On the sectoral front, fresh long buildup was seen in among FMCG, Chemicals and Pharma stocks whereas short buildup seen in Cement and Technology share.

On options Nifty will start the final week of July contract with maximum positions are at 19800 PE and 20000 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 3371 Cr in the cash segment, bought stocks futures and index futures worth Rs 1982 Cr and 996 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 193 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 20030-20100; Supports 19800-19700

Banknifty – Resistances 46300-46450; Supports 45600-45400

Finnifty – Resistances 20580-20670; Supports 20270-20120






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