Fed minutes show unity on cautious approach to future rate hikes - Daily Market Update - Equity 22 Nov 2023 | Globe Capital Market LTD.
Fed minutes show unity on cautious approach to future rate hikes – Daily Market Update – Equity 22 Nov 2023

Federal Reserve policymakers at their most recent meeting united around a strategy to proceed carefully on future interest-rate moves and base any further tightening on progress toward their inflation goal. All participants agreed that the committee was in a position to proceed carefully and that policy decisions at every meeting would continue to be based on the totality of incoming information.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.18% to 0.59%.
  • European equity markets too settled on flat to negative note
  • Asian equity markets are trading mix
  • GIFT Nifty is little changed & Nifty futures likely to open around 19860 levels (as on 8:30AM)


News highlights from across the globe

  • Asian markets declined in early trade on Wednesday as the rally in U.S. benchmarks stalled after Federal Reserve minutes reiterated the central bank’s cautious approach.
  • Brent crude was trading at $82 a barrel and the yield on the 10-year US bond was trading at 4.39%.


Important news updates from the domestic front

  • Reliance Industries Chairman and managing director Mukesh Ambani said the company plans to invest Rs 20,000 crore in West Bengal in the next three years.
  • TCS: The U.S. Supreme Court rejected the company’s petition to appeal an earlier court verdict. The company will make a $125 million provision in its third-quarter earnings related to a case involving Epic Systems Corp.
  • Maruti Suzuki India will consider the allotment of 1.23 crore equity shares of the company to Suzuki Motor Corp. on a preferential basis on Nov. 24.
  • Jio Financial Services denied news reports that it is planning its maiden bond issue. It has no plans to raise money by way of bond issuance or otherwise, and the news circulated is “speculative”, it said.
  • Adani Enterprises unit Adani Defence Systems and Technologies signed a shareholders’ agreement and share subscription agreement with Israel-based Elbit Systems. Pursuant to this, ESL will be subscribing to a 44% stake in Atharva Advanced Systems and Technologies.
  • KEC International bagged multiple new orders worth Rs 1,005 crore.
  • Lupin received tentative U.S. FDA approval for its Dapagliflozin tablets. Dapagliflozin is a generic of Farxiga tablets.
  • Texmaco Rail & Engineering board approved the opening of QIP on Nov 21. The floor price of QIP is set at Rs 135.9 apiece.
  • Wipro announced a collaboration with NVIDIA to help healthcare companies accelerate the adoption of generative artificial intelligence through AI-driven strategies, products, and services.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side and settled at 19783 levels after adding  89 points to its previous closing values after a lackluster trading session.

Broader market underperformed the benchmark as Midcap & Small Cap index settled on a flat note against 0.43% advance of frontline index.

Majority of the sectoral indices settled higher. Amongst them, Nifty Metal index was at the top of the tally, gained 1.23% followed by Consumer Durables, Media, Pharma and Realty indices that were settled higher, up over 1% each. On the other hand, Nifty PSU Bank and IT  index ended on a flat to negative note.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 19500 levels.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty and Finnifty futures with increase in open interest by 1.1% and 17.8% respectively. No significant change was seen in Banknifty futures on price front but open interest was decreased by 6.4% with initial sign of  short covering.

On sectoral front, long buildup was seen in Power, Realty, Infrastructure and Capital Goods stocks whereas short buildup was seen in Telecom stocks. Short covering was seen in Automobile and Metals stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19700 PE and 19800 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 456 Cr in the cash segment, bought stocks futures and index futures worth Rs 2286 Cr and Rs 668 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 722 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19890-20000; Supports 19630-19540

Banknifty – Resistances 44220-44440; Supports 43400-43100

Finnifty – Resistances 19815-19930; Supports 19510-19430




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