The benchmark 10-year Treasury note yield hit a high of 4.34%, reaching its highest level since November 2007 : Daily Market Update- Equity 22 Aug 2023 | Globe Capital Market LTD.
The benchmark 10-year Treasury note yield hit a high of 4.34%, reaching its highest level since November 2007 : Daily Market Update- Equity 22 Aug 2023

Despite a flat opening and initial downtick, Nifty managed to recover from its day low to end the day on a higher note at 19393 levels, up 83 points to its previous closing values.

Overview and Outlook

Global Market Update

  • Barring Dow Jones, other US equity markets settled on positive note.
  • European equity markets settled on mixed note.
  • Asian equity markets are trading on a positive note
  • GIFT Nifty is likely to open flat at 19389.


News highlights from across the globe

  • Asian equities are set to rise on Tuesday following a rally in big tech that spurred a rebound on Wall Street. Rising Treasury yields and likely upward pressure on rates in Asia may temper sentiment for risk taking as investors await a key speech later in the week by Federal Reserve Chair Jerome Powell.
  • On Monday, the S&P 500 halted a four-day drop while the Nasdaq 100 rose about 1.5%, with Tesla Inc. up the most since March.
  • Brent crude was trading below $85 a barrel and the yield on the 10-year U.S. bond was trading at 4.34%.


Important news updates from the domestic front

  • Adani Enterprises: Founder firm Kempas Trade and Investment bought 2.53 crore shares (2.22%). The purchase was made from open market between Aug. 7 to Aug. 18. The company has also incorporated a wholly-owned subsidiary Sirius Digitech International to provide digital solutions and services.
  • Adani Power has targeted a total capacity of 21,110 MW by FY29. This includes proposed inorganic capacity at 1,100 MW, brownfield capacity of 3,200 MW, core existing capacity of 15,210 MW and committed brownfield capacity of 1,600 MW. It sees the net senior debt at Rs 26,690 crore in FY24 vs Rs 24,350 crore in FY23.
  • Tata Power arm Tata Power Renewable Energy signed a power purchase pact with Tata Motors for 9 MWp on campus solar plant at Pantnagar in Uttarakhand. The project will be commissioned within six months.
  • Lemon Tree Hotels has signed license agreements for two properties in Bhubaneswar and Kasauli under the brand Lemon Tree Hotel and Lemon Tree Mountain Resort, respectively. The hotel in Bhubaneswar is expected to be operational by Q4FY25, and the hotel in Kasauli is expected to be operational by Q3FY26.
  • Brigade Enterprises has entered into a sale deed for acquiring 6.54 acres of land parcel in Chennai in which a residential project will be developed.
  • BLS International subsidiary BLS International FZE is in process to subscribe 100% share capital of Saudi Arabia-based BLS International Travel & Tourism.
  • RITES signed an MoU with NHPC to collaborate on comprehensive consultancy services for rail infrastructure facilities for NHPC’s hydropower projects in Arunachal Pradesh.


Nifty Overview & Outlook

Despite a flat opening and initial downtick, Nifty managed to recover from its day low to end the day on a higher note at 19393 levels, up 83 points to its previous closing values.

Broader market outperformed the benchmark as Midcap & Small cap index ended on higher note up over 0.5% each. The market breadth was inclined towards the advancing side as over 1.5 advances were recorded for every declining share at NSE.

All the sectoral indices barring PSU Bank and Media tracked at NSE settled in green. Amongst them, Nifty IT and Metal index was the top performers gained over 1% each followed by Nifty Consumer Durables, FMCG, Healthcare and Realty indices that settled higher in range 0.65% to 1%.

Going ahead, we reiterate our sideways view on the Nifty index till it is trading in 19250-19650 range. Either side break from this range will set the tone for the next directional move in that direction.


Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty future and Banknifty future with decrease in open interest by 0.7% and 8.4% respectively whereas fresh long buildup was seen in Finnifty future with increase in open interest by 6.2%.

On the sectoral front, long buildup was seen in Automobile, Capital Goods, Power and Technology stocks whereas initial sign of short covering was seen in Banking, Finance, Metals and FMCG shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 19300 PE and 19400 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1901 Cr in the cash segment, bought stocks futures and index futures worth Rs. 2077 Cr and Rs. 212 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 626 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19480-19545; Supports 19330-19265

Banknifty – Resistances 44330-44500; Supports 43780-43640

Finnifty – Resistances 19675-19750; Supports 19490-19415




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