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

The benchmark nifty index settled off lows, closed shop at 16988 levels, down over 100 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.39% to 1.2%%
  • European equity markets also settled higher in range 0.92% to 1.25%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is trading up by 70 points (as on 8:10 AM)


News highlights from across the globe

  • Asian markets advanced following the gains on Wall Street as immediate concerns over the strength of the global financial system dissipated.
  • Banks enjoyed relief after days of turmoil that triggered last week’s 15% rout in an index of U.S. lenders. UBS Group AG rose as investors focused on the upside of its Credit Suisse Group AG takeover.
  • The yield on 10-year treasuries were trading at 3.48%. Crude prices were trading around $73-mark


Important news updates from the domestic front

  • Adani Enterprises: The company clarified that the green PVC project in Mundra has been held up on account of financial closure pending with the lenders. The same is expected to be cleared within six months, it said in a statement.
  • Indian Oil Corporation/NTPC: Indian Oil Corporation and NTPC Green Energy, a wholly owned subsidiary of NTPC, will form a joint venture for setting up of renewable energy power plants to meet round the clock power requirement of new projects of the former’s refineries.
  • Lupin: The company’s alliance partner Caplin Steriles received final approval from the U.S. FDA to market its Thiamine Hydrochloride injection USP and Rocuronium Bromide injection.
  • Dr. Reddy’s Laboratories: Coya Therapeutics in a statement, announced a worldwide agreement with Dr. Reddy’s Laboratories to license the latter’s proposed Abatacept biosimilar for the development of Coya’s combination product for neurodegenerative diseases, COYA 302.
  • Kotak Mahindra Bank: The bank allotted 30,000 non-convertible debentures of face value Rs 1 lakh each on private placement basis to raise Rs 300 crore.
  • RBL Bank: The Reserve Bank of India imposed a penalty of Rs 2.27 crore over the bank’s failure to ensure that debt recovery agents engaged by it did not resort to intimidation or harassment of any kind.
  • Tata Motors: The company has appointed Usha Sangwan as an additional director and independent director for five years from May 15, 2023, to May 14, 2028.


Nifty Outlook

The benchmark nifty index settled off lows, closed shop at 16988 levels, down over 100 points from its previous closing values.

Broader markets underperformed the benchmark as Mid and Small cap index was down nearly 1.13% & 0.98% respectively against 0.65% decline in the frontline index. The market breadth was skewed in the favor of the sellers as 1646 declines were recorded against 663 advances at NSE.

Barring Nifty FMCG and Media, all the sectoral indices tracked at NSE ended in red. Amongst them, Nifty Metal was the worst performer, down 2.35% followed by Nifty PSU Bank and IT index that were down 1.74% and 1.43% respectively.

Technically, Nifty index formed a hammer candles on daily charts which show strength in price. Sustainability above the 17000 level may lead the benchmark towards 17200/17300 levels in the coming session.


Derivatives Overview & Outlook

Yesterday, all three main indices i.e. Nifty, Banknifty and Finnifty futures added around 6%, 2% and 3% of open interest respectively as short buildup.

All F&O sectors settled lower. Amongst them, Media, Banking, Capital Goods and Cement stocks witnessed maximum addition of short positions.

On options front, Nifty has maximum positions at 16900 PE and 17200 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 2546 Cr in the cash segment, sold stocks futures worth Rs 2220 Cr and also sold index futures worth Rs 1996 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2877 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17110-17200; Supports 16950-16850

Banknifty – Resistances 39750-40150; Supports 39250-39000


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.