Oil dragged lower as OPEC+ discord forces delay to key meeting - Daily Market Update - Equity 22 Nov 2023 | Globe Capital Market LTD.
Oil dragged lower as OPEC+ discord forces delay to key meeting – Daily Market Update – Equity 22 Nov 2023

Oil tumbled as discord within OPEC+ forced the group to delay its upcoming meeting, quelling speculation of further production cuts by the Saudi-led alliance just as US data pointed to another rise in stockpiles. Global benchmark Brent sank below $81 a barrel after a volatile session on Wednesday that saw prices swing by more than $4, while West Texas Intermediate was near $76. OPEC+ delayed the meeting to the end of the month as disputes arose over quotas for African members including Angola.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.41% to 0.53%.
  • Barring FTSE, other European equity markets ended on positive note.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed & Nifty futures likely to open around 19900 levels (as on 8:30AM)


News highlights from across the globe

  • Asian stocks opened on a mix note on Thursday after US stocks went higher and Treasuries fell on the data showing US consumers expect inflation to persist.
  • Brent crude was trading at $81.96 a barrel and the yield on the 10-year US bond was trading at 4.4%.


Important news updates from the domestic front

  • TCS was ranked first in Spain for customer satisfaction in service delivery among IT and cloud services providers.
  • ICICI Bank: The credit rating company Care Rating has reaffirmed CARE AAA; Stable to ICICI Bank’s infrastructure bonds.
  • Infosys announced a strategic long-term collaboration with TK Elevator to consolidate, harmonise, and modernise TK Elevator’s digital landscape.
  • Tata Steel allotted 7.5 crore shares to Tata Steel Long Products and their shareholders in the scheme of amalgamation.
  • UPL has incorporated a wholly owned subsidiary, Avanta Seeds, in South Africa.
  • InterGlobe Aviation got a tax demand notice of Rs 7,396.76 million and Rs 9270.31 million, for which the company had preferred appeal before CIT-Appeal.
  • TVS Motor announced its entry into Vietnam in collaboration with Minh Long Motors, its distribution partner.
  • Power Grid Corp approved a power project worth Rs 142.69 crore in Telangana and a power project worth Rs 224.41 crore in Gujarat.
  • Welspun Corp subsidiary, Sintex BAPL, received the Odisha Government’s nod for its proposal to invest Rs 479.47 crore in setting up a manufacturing unit with a capacity of 37,520 MT.


Nifty Overview & Outlook

Benchmark Nifty index settled on a flat to positive note at 19812 levels, added 28 points to its previous closing values after a highly volatile trading session.

Broader markets ended on a mix note as Small Cap index ended on a negative note, fell over 1% while Mid Cap index settled on a flat note.

Performance on the sectoral front was also mix. Amongst them, Nifty Auto, IT, and Healthcare index were the top performers, gained over 0.5% each. On the other hand, Nifty PSU Bank, Metal and Media index led the decline, down in range 0.87% to 1.14%.

Technically, Nifty index is consolidating around an important resistance of 19850 levels. On the downside, support is placed around 19500 levels. Crossover and sustenance above 19850 levels might take it towards 20000 level in the immediate near term.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by 4.4% whereas short buildup was seen in Banknifty futures with increase in open interest by 16.8% and long unwinding was seen in Finnifty futures with decrease open interest by 4.5%.

On sectoral front, long buildup was seen in Power, Technology and FMCG stocks whereas short buildup was seen in Banking, Capital Goods, Finance, Infrastructure and Telecom stocks. Some long unwinding was seen in Realty and Media stocks.

On options front, both call and put writing was seen at multiple strikes and maximum positions are at 19800 PE and 19900 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 307 Cr in the cash segment, sold stocks futures worth Rs 1102 Cr and bought index futures worth Rs 369 Cr. DIIs were net buyer in the cash segment to the tune of Rs 721 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19950-20030; Supports 19670-19600

Banknifty – Resistances 43980-44300; Supports 43300-42900

Finnifty – Resistances 19750-19870; Supports 19405-19290




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