U.S. Fed keeps key interest rate unchanged, signals one more hike this year: Daily Market Update- Equity 21 Sep 2023 | Globe Capital Market LTD.
U.S. Fed keeps key interest rate unchanged, signals one more hike this year: Daily Market Update- Equity 21 Sep 2023

The U.S. Federal Reserve held its key interest rate steady and signaled that it will remain elevated for longer than expected. The Federal Open Market Committee decided to hold its key interest rate at 5.25-5.5% in September in a unanimous decision, according to its statement on Wednesday. The central bank had hiked the rates by 25 basis points in July, which took the benchmark rate to its highest.  

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.22% to 1.53%
  • European equity markets ended on positive note.
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is up by 62 points (as on 8:30AM), Nifty futures likely to open around 19843 levels.


News highlights from across the globe

  • Equity markets in Asia are trading lower as worsening risk sentiment drove U.S. stocks to session lows after the Federal Reserve signaled interest rates will be higher for longer.|
  • U.S.-listed Chinese stocks fell for a fourth straight session. Big tech led losses on Wall Street, with the Nasdaq 100 down 1.5% and S&P 500 dropping almost 1%. Contracts for U.S. equities were flat in early Asian trading.
  • The Fed held its target range at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favored another rate hike in 2023. Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective.” A “soft landing” for the U.S. econ
  • Brent Crude prices slipped below $93 a barrel and the yield on the 10-year U.S. bond was trading at 4.41%.


Important news updates from the domestic front

  • Infosys has tied up with NVIDIA to develop generative AI applications and solutions. The broadened alliance brings together Nvidia AI Enterprise and Infosys Topaz, an AI suite of services that was introduced earlier this year. The companies will collaborate to train 50,000 Infosys employees on NVIDIA AI.
  • SBI, KFin Technologies: The state-run lender has appointed KFin Technologies as the Registrar and Share Transfer Agent (RTA) in place of existing RTA Alankit Assignments. The formalities for the change of RTA relating to documentation, shifting of electronic connectivity, and transition of data are in process.
  • REC: Kallam Transco has been incorporated as a wholly-owned subsidiary of REC Power Development and Consultancy. The company also announced the sale of Beawar Transmission to Sterlite Grid 27, comprising 50,000 equity shares. Sterlite was the successful bidder selected through a tariff-based competitive bidding process to establish an inter-state transmission system for REZ in Rajasthan under Phase III, Part F.
  • Cipla: An inspection was conducted by the USFDA at the manufacturing facility of unit InvaGen Pharmaceuticals Inc. in New York from Sept. 11 to 13. InvaGen has received five inspectional observations in Form 483. There are no repeat or data integrity (DI) observations.
  • InterGlobe Aviation: Rival Akasa Air was forced to thin out its schedule after some pilots left and joined bigger competitors, reported Bloomberg. The market share of Akasa dropped to 4.2% in August from 5.2% the month before.
  • Zydus Lifesciences received final approval from the USFDA for Clindamycin Phosphate Gel USP, 1%. Clindamycin Phosphate Gel USP, 1%, had annual sales of $37 million in the U.S. The group now has 381 approvals.
  • SJVN: The Power Ministry will sell up to 2.46% of the stake, or 9.66 crore shares, via OFS. The floor price of OFS is set at Rs. 69 per share. OFS is to open on Sept. 21 for non-retail investors and Sept. 22 for retail investors. OFS has the oversubscription option to sell an additional 2.46% stake.
  • Biocon: Unit Biocon Biologics received European Commission-granted marketing authorisation in the EU for YESAFILI, a biosimilar of Aflibercept. Aflibercept had EU brand sales of approximately $1.8 billion for the 12 months ending Dec. 31, 2022, according to IQVIA.
  • Apollo Tyres: Bias and OTR tyre production at their manufacturing facility in Limda, Gujarat, has been stopped due to certain concerns amongst shop floor employees relating to the renewal of the long-term settlement agreement. The company is in discussions and negotiations with the labour union representatives to address their concerns.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on down side and kept on sliding throughout the session, settled at 19901 levels, down over 200 points from its previous closing values.

The broader markets performed slightly better than the benchmark as Mid cap index settled on a flat note while Small cap index was down 0.88% respectively.

All the sectoral indices tracked at NSE settled in red. Amongst them, Nifty Metal index led the declines, fell 1.63% followed by Nifty Bank, Financial Services, PSU Bank and Realty indices that was down over 1% each.

Nifty index moved in line with our expectation of some profit taking as mentioned in our previous post. Going ahead, we expect it to trade with negative bias in short term and expect it to test 19800 and lower levels in near term.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty and Finnifty futures with decrease in open interest by 7.6% and 5.6% respectively while no significant activity was seen in Banknifty futures on open interest front.

On the sectoral front, short buildup was seen in Banking, Metal, Oil & Gas, Textile and Telecom stocks. Short covering was seen in Power stocks, and long unwinding was seen in Cement, Automobile, Chemical and Technology stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 19900 PE and 20000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3111 Cr in the cash segment, sold stocks futures and index futures worth Rs 925 Cr and Rs 2182 Cr. DIIs were net sellers in the cash segment to the tune of Rs 573 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 20170-20230; Supports 19850-19950

Banknifty – Resistances 46030-46200; Supports 45150-44940

Finnifty – Resistances 20380-20500; Supports 20030-19900


F&O stocks in ban today:



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