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

The benchmark Nifty index settled higher at 17107 levels after adding 119 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.98% to 1.58%
  • European equity markets too settled higher, gained 1.4% to 1.76%
  • Asian equity markets are also trading in green
  • SGX Nifty is little changed  (as on 8:10 AM)


News highlights from across the globe

  • Asian markets opened higher following U.S. equities as concerns over financial stability eases as investors prepare for the Federal Reserve’s interest-rate decision later on Wednesday.
  • 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 3.59%. Crude prices were trading around $75-mark.


Important news updates from the domestic front

  • Tata Motors: The company raised prices of its commercial vehicles by 5% from April 1, 2023, to comply with the BS6 phase II emission norms.
  • Tata Power: Subsidiary Tata Power Renewable Energy received letter of award to set up 200 MW solar PV project Maharashtra State Electricity Distribution Company at Solapur, Maharashtra.
  • Bandhan Bank: The bank received binding bids of Rs 369.20 crore for written-off portfolio worth Rs 2,614.03 crore and Rs 370.62 crore for NPA originating from banking units worth Rs 2,316.32 crore on security receipt consideration basis for transferring loans to asset reconstruction company.
  • Indian Oil Corporation: The company will prepare a detailed feasibility report for setting up a petrochemical complex at Paradip, Odisha at an estimated project cost of Rs 61,077 crore. The project will improve the Petrochemical Intensity Index of the company and de-risk its fossil fuel business.
  • Power Finance Corporation: The company’s board approved raising Rs 80,000 crore debt via long-term borrowings, short-term borrowings and commercial papers during the next financial year.
  • Hindustan Zinc: The board approved fourth interim dividend for the current fiscal of Rs 26 per share, with an overall outgo of Rs 10,985.83 crore.
  • Power Grid Corporation Of India: The company’s Committee of Directors for Bonds will meet on March 24 to consider issue of bonds under private placement.


Nifty Outlook

The benchmark Nifty index settled higher at 17107 levels after adding 119 points to its previous closing values.

Broader Market performed in line with the benchmark as Nifty Midcap and Small-cap ended on a positive note up by 0.5% each. The market breadth was inclined towards the bullish side as 1330 advances were recorded against 940 declines at NSE.

Performance on the sectoral front was mix. Banking and Financials led the advances as PSU bank index soared 1.65% followed by Fin Services and Pvt Bank index that were up nearly 1.50% each. On the other hand, Nifty IT and FMCG led the declines; down 0.98% and 0.66% respectively.

Technically, Nifty ended on a strong note and managed to hold the 17100 level on closing basis. Going ahead, sustainability above said level, we are expecting a sharp pullback towards 17200/17300 levels in the near term.


Derivatives Overview & Outlook

All three main indices, Nifty, Banknifty and Finnifty futures added around 2%, 12% and 1% of open interest respectively as long buildup.

On the sectoral front, long buildup was seen among Auto and Textile stocks whereas some long unwinding was seen among Power stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 17000 PE and 17800 CE followed by 17200 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1455 Cr in the cash segment, bought stocks futures worth Rs 2196 Cr and sold index futures worth Rs 129 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1946 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17260-17350; Supports 17060-16950

Banknifty – Resistances 40300-40600; Supports 39750-39480


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