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

The benchmark Nifty index closed on a positive note, settled above 18800 levels after adding 61 points to its previous closing values after highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.16% to  0.72%
  • European equity markets also settled lower in range 0.25% to 0.56%
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is little changed (as on 8:30AM)


News highlights from across the globe

  • Asian markets are trading lower on Wednesday following declines in the U.S., with investors growing cautious ahead of the Federal Reserve chief’s congressional testimony.
  • Bonds gained in early Asia trading, with the yield on the 10-year Australian security dropping six basis points to 3.96%. Fed Chair Jerome Powell is scheduled to give his semi-annual report to Congress on Wednesday
  • Brent crude was trading below $76 a barrel and the yield on the 10-year U.S. bond was trading at 3.72%


Important news updates from the domestic front

  • HDFC/HDFC Life Insurance: The Competition Commission of India approved HDFC Ltd.’s acquisition of an additional shareholding in HDFC Life. The acquisition of additional shareholdings will be done via one or more market purchases on stock exchanges. Following the merger of HDFC Ltd. and HDFC Bank, the merged HDFC Bank entity will hold over 50% of HDFC Life.
  • Shilpa Medicare will consider a proposal for fund-raising by way of a rights issue of equity shares on 23 June.
  • Aptech Managing Director and CEO, Anil Pant, has taken an indefinite leave on account of a sudden deterioration of his health. The Board has constituted an Interim Committee to ensure smooth functioning and continuity of operations for the company.
  • GR Infraprojects has bagged a hybrid annuity mode order for four lanes of NH 530B in Uttar Pradesh from the National Highway Authority of India with a project cost of Rs 1,085.47. It has also executed with National Highways Logistics Management the designing, building, financing, operating, and transferring of a logistics park in Indore for a project cost of Rs 758.1 crore.
  • Pidilite Industries launched its manufacturing facilities under its two joint ventures, Pidilite Litokol and Tenax Pidilite, in Amod, Gujarat. Litokol SPA Italy and Tenax SPA Italy have transferred technology to Pidilite as part of the joint venture. Pidilite will be leveraging its distribution network to market and sell epoxy, urethane grout, and certain epoxy adhesives for tile appl
  • Gujarat Alkalies and Chemicals: Ex-Finance Secretary Hasmukh Adhia takes over as Chairman from Raj Kumar.


Nifty Overview & Outlook

The benchmark Nifty index closed on a positive note, settled above 18800 levels after adding 61 points to its previous closing values after highly volatile trading session.

Broader market performed in line with the benchmark as Mid & Small cap index were up over 0.50% each. The market breadth was skewed in favor of bulls as nearly 1.5 advances were recorded for every declining share at NSE.

Majority of sectoral indices tracked at NSE settled in green. Nifty Auto, IT, Metal, and Realty Index settled higher in range 0.49% to 0.78% each. On the other hand, Nifty Media and Healthcare index witnessed some selling pressure, down 1.26% and 0.26% respectivly.

Going ahead, we reiterate our bullish view on the Nifty and suggest traders to maintain buy on dips trading strategy till it is holding above 18400 levels on closing basis.


Derivatives Overview & Outlook

Yeterday, Nifty futures shed around 1% of open interest as long unwinding whereas Banknifty and Finnfity futures added around 1% & 11% of open interest respectively as short buildup.

On sectoral front, short buildup was seen among Infra and Oil & Gas stocks whereas some long buildup was seen among Finance and Pharma stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18700 PE and 19000 CE closely followed by 18800 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1031 Cr in the cash segment, sold stocks futures worth Rs 1883 Cr and also sold index futures worth Rs 1325 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 365 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18950-19025; Supports 18800-18740

Banknifty – Resistances 44150-44550; Supports 43650-42400

Finnifty – Resistances 19600-19660; Supports 19400-19300


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