Daily Market Update- Equity 23 Feb 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 23 Feb 2023

Tracking negative cues from the global peers, benchmark Nifty index opened with a gap on the downside and settled sharply lower at the 17554 level, down 272 points from previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended on flat note
  • European equity markets ended mix, FTSE was down 0.59% while CAC and DAX ended flat
  • Asian equity markets are trading mix
  • SGX Nifty is trading up by 45 points ( as on 8:15 AM)


News highlights from across the globe

  • Asian markets are primed for a cautious open after the U.S. shares fell, weighed down by Federal Reserve meeting minutes that underscored the central bank’s hawkish outlook and prompted investors to increase forecasts for interest rate hikes.
  • A rally in Treasuries moderated after the Fed minutes were released. The Fed minutes showed officials expect further interest rate increases to tame inflation.
  • RBI Governor, Shaktikanta Das said, “we must remain unwavering in our commitment to bring down inflation, while being mindful of growth.”


Important news updates from the domestic front

  • Biocon: Kotak Special Situations Fund invested Rs 1,070 crore in the company, which will be utilised by the latter’s subsidiary—Biocon Biologics—to fund its acquisition of the biosimilars business of its partner Viatris.
  • Tata Steel: The company acquired 4.69 crore shares of its indirect subsidiary of Neelachal Ispat Nigam at Rs 64 apiece, aggregating to Rs 300 crore in the first tranche of investment in the equity shares of the latter.
  • Orient Cement: The non-binding MoU between the company and Adani Power Maharashtra for establishing a cement grinding unit at Tiroda, Maharashtra stands terminated as the latter could not obtain the required MIDC clearances for sub-leasing the land required for the facility.
  • Hero MotoCorp: The company, through its electric mobility brand Vida, initiated operations of its public charging infrastructure in Bengaluru, Delhi and Jaipur.
  • Wipro: The company launched Decentralised Identity and Credential Exchange ID to make digital identification and credential verification faster, easier and more secure.
  • Lemon Tree Hotels: The company signed a licence agreement for a 47-room property in Bhopal, Madhya Pradesh, which is expected to become operations by December 2023 and will be operated by subsidiary Carnation Hotels.


Nifty Outlook

Tracking negative cues from the global peers, benchmark Nifty index opened with a gap on the downside and kept sliding lower throughout the day, finally it settled sharply lower at the 17554 level, down 272 points from previous closing values.

The broader market performed in line with the benchmark as Nifty Midcap and Small cap fell over 1% each. Market breadth was heavily titled towards the declining side as 1795 declines were recorded against 458 advances at NSE.

All sectoral indices tracked at NSE settled lower where Nifty metal was the worst performer down over 2.5% followed by Media, Financial Services, PSU Bank, and Nifty Realty which were down 1.5% to nearly 2% each.

Going ahead, we expect markets to trade southward till the Index trading below 17800 levels, any pullback from a lower level should be considered as selling opportunity.


Derivatives Overview & Outlook

Yesterday, Nifty futures added around 11% of open interest as short buildup whereas Banknifty future remained almost unchanged on open interest front.

Nifty and Banknifty futures have rolled 55% and 59% of open interest respectively into next contracts so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 18000 CE and 17500 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 580 Cr in the cash segment, sold stocks futures worth Rs 1152 Cr and also sold index futures worth Rs 2732 Cr. On the other hand, DIIs were net buyers in the cash segment to the tune of Rs 372 Cr.



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