Daily Market Update- Equity 23 Jan 2023 | Globe Capital
23-Jan-2023
Daily Market Update- Equity 23 Jan 2023

Benchmark Nifty index settled lower at 18027 levels, down 80 points from its previous closing values after a lackluster trading session.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 1 to 2.66%
  • European equity markets were up in range 0.3% to 0.55%
  • Majority of Asian equity markets are closed
  • SGX Nifty is up 100 points (as on 8:29 AM)

 

News highlights from across the globe

  • Asian markets were poised to advance on Monday after a rebound on Wall Street last Friday and Fed comments alleviating fears of aggressive policy moves.
  • Markets in Hong Kong, Shanghai, Singapore and Seoul were closed for Lunar New Year celebrations. Many regional markets will remain closed until midweek and mainland China trading won’t resume until Jan. 30.
  • U.S. stocks recovered from the week’s losses on the back of a rally in tech stocks. The S&P 500 rose 1.9%, while the tech-heavy Nasdaq 100 was up 2.9%. The yield on 10-year Treasuries advanced nine basis points to 3.48%.

 

Important news updates from the domestic front

  • Reliance Industries: The company will raise Rs 20,000 crore via non-convertible debentures. Additionally, KV Kamath has jointed the company’s board as independent, effective Jan. 20, for a term of five years.
  • State Bank of India/Canara Bank: The lender will sell its 40% stake in Moscow-based joint venture Commercial Indo Bank LLC to partner State Bank of India for $14.67 million.
  • Trent: The company executed a joint venture agreement with MAS Amity to set up an entity in India for jointly developing a business of intimate wear and other apparel related products.
  • Page Industries: The board will meet on Feb. 9 to consider third interim dividend for the fiscal and financial results for the quarter ended December 2022.
  • Lemon Tree Hotels: The company signed a franchised hotel in Kumbhalgarh , Rajasthan, which is expected to open in December 2023.
  • Strides Pharma: The World Health Organisation completed inspection of the company’s facility in Puducherry from Jan. 16-20.
  • Anupam Rasayan India: The board will meet on Jan. 27 to consider and approve second interim dividend for the fiscal and the financial results for the December quarter.
  • Adani Enterprises: Step-down subsidiary Agneya Systems has formed a 56:44 joint venture with Armada Defence Systems manufacturing various types of products and parts for Indian armed forces.

 

Nifty Outlook

Benchmark Nifty index settled lower at 18027 levels, down 80 points from its previous closing values after a lackluster trading session.

Broader markets underperformed the benchmark as Mid and Small cap index settled lower by 0.78% & 0.57% respectively.

Majority of sectoral gauges, barring Banking and Financial Services index, tracked at NSE settled lower. Amongst them, Media index was the worst performer, down over 1% followed by FMCG and Metal index that fell nearly 1% each.

Technically, Nifty index is trading in a range (17750-18250 levels) for past few weeks. Crossover and sustenance from this range is required for any sustainable move in that direction, until then, it is likely to trade sideways.

 

Derivatives Overview & Outlook

On Friday, no significant activity was seen in Nifty and Banknifty futures on price front whereas on open interest front both added around 4% and 1% of open interest respectively.

Nifty and Banknifty futures have rolled 24% and 36% of open interest respectively into next contracts so far.

On options front, call writing was seen at multiple strikes along with put writing at 17800 and lower strikes, maximum positions are at 18100 CE and 17800 PE.

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 1571 Cr in the cash segment, bought stocks futures worth Rs 1199 Cr and also bought index futures worth Rs 2894 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 3384 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18150-18225; Supports 17980-17900

Banknifty Futures – Resistances 42700-43000; Supports 42280-42000

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