Daily Market Update- Equity 22 June 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 22 June 2023

The benchmark Nifty index settled on a flat to a positive note, closed shop at 18857 levels after adding 40 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.30% to  1.21%
  • European equity markets also settled lower in range 0.13% to 0.55%
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is down by 50 points (as on 8:30AM)


News highlights from across the globe

  • Asian markets are trading lower after U.S. equities extended declines, with Federal Reserve Chair Jerome Powell sticking to the script of higher rates to combat inflation.
  • Powell renewed his warning that higher rates were needed, telling Congress during his semi-annual report that two more rate hikes this year were “a pretty good guess.”
  • Brent crude was trading above $77 a barrel and the yield on the 10-year U.S. bond was trading at 3.72%

Important news updates from the domestic front

  • Tata Consultancy Services: Tata Consultancy Services, U.K.’s Nest Pension expand strategic partnerships to provide enhanced member experience. That, in turn, will provide better retirement outcomes for Nest’s 12 million members.
  • Bharti Airtel picks up a 12.07% stake in Egan Solar Power to seek a captive power plant for  Rs 1.3 crore. The telecom giant aims to own and operate the captive power plant to comply with electricity laws.
  • Sansera Engineering: Client Ebene and CVCIGP II Employee Ebene to sell 47.8 lakh shares (9%) and 26.8 lakh shares (5.1%) respectively. Shares are offered in the price range of Rs 799.85 to 841.95 apiece, representing a discount of up to 5% to Wednesday’s closing price.
  • NTPC is to consider raising Rs 12,000 via bonds on June 24.
  • Kalpataru Projects International board approved raising Rs 300 crore via issuance of unsecured, rated, listed, redeemable, non-convertible debentures.
  • Glenmark Pharma: The U.S. FDA issued a warning letter to the Monroe facility in North Carolina. The company had done a voluntary recall of all its products from this site in August 2021 and since then has not been commercializing any product from this site. Hence, the warning letter will have no impact on the existing revenues, it said.
  • Krishna Institute Of Medical Science: SBI Mutual Funds under its various schemes has acquired 52,08,276 shares of the company which is 6.5% paid-up share capital of the company.


Nifty Overview & Outlook

The benchmark Nifty index settled on a flat to a positive note, closed shop at 18857 levels after adding 40 points to its previous closing values.

Mid cap index outperformed the benchmark as it’s up by 0.75% while Small cap index settled on a flat to positive note; resultant, market breadth was almost flat.

Performance on the sectoral front was mix. Amongst them, Financial Service and Media Index were at the top of the tally, rose 0.68% & 0.55% respectively. On the other hand, Metal and FMCG index led the decline, fell 0.94% & 0.44% respectively.

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


Derivatives Overview & Outlook

Yeterday, Nifty and Banknifty futures remained almost unchanged on price as well as on open interest front whereas Finnfity futures added around 15% of open interest as long buildup.

On sectoral front, long buildup was seen among Telecom, Media, Chemicals, Oil & Gas and Auto stocks whereas some short buildup was seen among Textile and Metal stocks.

On options front, call writing was seen at multiple strikes along with put writing at multiple strikes and maximum positions are at 18800 PE and 19000 CE closely followed by 18900 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 4013 Cr in the cash segment, sold stocks futures worth Rs 818 Cr and bought index futures worth Rs 212 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 550 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18950-19025; Supports 18820-18750

Banknifty – Resistances 44300-44550; Supports 43750-42500

Finnifty – Resistances 19700-19800; Supports 19550-19450


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