Oil declines as Israel delays Gaza invasion amid hostage talks - Daily Market Update- Equity 23 Oct 2023 | Globe Capital Market LTD.
Oil declines as Israel delays Gaza invasion amid hostage talks – Daily Market Update- Equity 23 Oct 2023

Oil declined, tracking losses in wider equity markets, as Israel held off on its ground invasion of Gaza amid diplomatic efforts to secure the release of more hostages. Global benchmark Brent dipped below $92 a barrel and West Texas Intermediate traded near $87 after two straight weeks of gains. Israel warned that Iran-backed Hezbollah risked dragging neighboring Lebanon into the war even as it continued fierce air raids on Hamas in Gaza. More than 60,000 people in Israel have been evacuated along the border with Lebanon.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.86% to 1.53%
  • European markets too ended on a negative note.
  • Asian equity markets are also trading in red.
  • GIFT Nifty is trading up by 50 point, Nifty futures likely to open around 19477 levels (as on 8:30AM).


News highlights from across the globe

  • The S&P 500 index and Nasdaq 100 fell by 0.56% and 0.99%, respectively, as on 2:15 p.m. New York time. The Dow Jones Industrial Average declined by 0.57%.
  • Brent crude was trading at $92 a barrel and the yield on the 10-year US bond was trading at 4.98%.


Important news updates from the domestic front

  • JSW Steel: Periama Holdings to acquire remaining 10% stake in JSW USA. Stake to be bought from Green Suppliers and Services for a consideration of $1,000. Following the acquisition, Periama will hold 100% stake in JSW USA.
  • Samvardhana Motherson pact to buy 100% stake in France’s Topco for €35 million. Topco manufactures components for aircraft engines and medical devices. The company is also in a pact to buy 73.05% stake in Irillic Private and will hold 74.19% of the share capital of the target.
  • Adani Energy Solutions received smart meter LOAs worth Rs 17,000 crore. It Added 219 circuit kilometers to operational network and also sold 2,446 million units, up 9.53% year-on-year.Adani Green Energy announced the resignation of Ahlem Friga-Noy as nominee director w.e.f. Oct. 23
  • Zydus Lifesciences received U.S. FDA approval for ANDA of Sitagliptin tablets, which is used to treat adult patients with type 2 diabetes mellitus.
  • Tata Power Renewable Energy signed a 12.5 MW PDA with Supreme Petrochem in Achegaon, Maharashtra. Plant expected to reduce carbon emissions by 20,075 metric tonnes annually.
  • ONGC: Participates in the bidding process for the acquisition of a 100% stake of PTC Energy, a wholly owned subsidiary of PTC India.
  • Aditya Birla Fashion and Retail buy a 51% stake in Styleverse Lifestyle for Rs 155 crore. The Acquisition is part of the company’s expansion of digital-first brands.
  • Astral completed the acquisition of 80% shares of Gem Paints (51% against redemption of optionally convertible debentures amounting to Rs 194 crores and 29% towards the second tranche). Balance 20% equity stake will be acquired over a period of 5 years.
  • LIC informed the stake increase in Housing & Urban Development Corporation from 10.45 crore shares to 17.82 crore shares, increasing the stake from 5.22% to 8.90%.
  • Paras Defence: Board of Directors approved the incorporation of a wholly owned subsidiary named Quantico Technologies, which will develop end-to-end solutions for Quantum Technologies (who is associated with United States and is included in the 5th Positive Indigenisation List).


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on downside, it kept on sliding throughout the day and settled near day’s lows at 19542 levels after a cut of 82 points from its previous closing values.

Broader market underperformed the benchmark as Midcap & Small Cap index were down 1.66% & 0.79% respectively.

All the sectoral indices, barring Nifty Pvt Bank index, tracked at NSE settled red. Amongst them, Nifty Consumer Durable & PSU Bank index were the worst performers, down over 1.5% each followed by Nifty Metal, FMCG, Oil & Gas, Pharma and Realty indices that settled down in range 1% to 1.50%.

Nifty index is trading in a narrow range i.e. 19400-19850 levels for past couple of sessions. Going ahead, we expect it to trade sideways till it is trading in the above mentioned trading range either side break from the range will drive the market in that direction.


Derivatives Overview & Outlook

Last Friday, short buildup was seen in Nifty future with increase in open interest by 2.6%. Long unwinding was seen in Banknifty and Finnifty future with decrease in open interest by 11.8% and 7.1% respectively.

On sectoral front, short buildup was seen in Capital Goods, Media, Metals, Oil & Gas, and Telecom stocks whereas long unwinding was seen in Banking, Cements, Chemicals, Finance, Technology and Power stocks.

On options call writing was seen at multiple strikes and maximum positions are at 19000 PE and 20000 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 2799 Cr in the cash segment, bought stocks futures worth Rs 258 Cr and sold index futures worth Rs 921 Cr. DIIs were net buyer in the cash segment to the tune of Rs 3511 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19630-19750; Supports 19410-19340

Banknifty – Resistances 44100-44440; Supports 43350-43080

Finnifty – Resistances 19700-19770; Supports 19350-19270






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