Daily Market Update- Equity 24 March 2023 | Globe Capital Market LTD.
24-Mar-2023
Daily Market Update- Equity 24 March 2023

The benchmark Nifty index erode two days of gain and ended lower at 17077 levels, down 75 points from its previous closing values after a highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.15% to 1%
  • European equity markets ended mix, FTSE was down 0.90% while CAC and DAX  ended on flat note
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is little changed  (as on 8:20 AM)

 

News highlights from across the globe

  • Asian markets trading in red after a technology-driven rally on Wall Street failed to ease the pressure over the banking sector.
  • Banking stocks missed out on the rally, with a gauge of U.S. financial heavyweights such as Wells Fargo & Co and Bank of America Corp sinking to the lowest since November 2020.
  • The yield on 10-year treasuries were trading at 3.39%. Crude prices were trading around $75-mark

 

Important news updates from the domestic front

  • Hindustan Aeronautics: The government will exercise the greenshoe option to sell additional 1.75% stake in the company as the offer for sale was subscribed 4.5 times its base size. The issue will open for retail investors on Friday.
  • Reliance Industries: Jio-BP, a joint venture between Reliance Industries and BP, and Piramal Realty, the real estate arm of Piramal Group, have entered a partnership to set up EV charging solutions across all of latter’s residential projects in the Mumbai Metropolitan Region.
  • Vedanta: The board of the company will meet on March 28 to consider its fifth interim dividend for the current fiscal.
  • Life Insurance Corporation of India: The Financial Services Institutions Bureau has recommended Siddhartha Mohanty as the chairperson of the insurer.
  • Infosys: The company’s U.S.-based subsidiary Infosys Public Services deployed Quantum Global Digital Management System for United Nations Development Programme, which will offer services to eight agencies of United Nations with a user base of 50,000 across 170 countries.
  • Bharat Electronics: The company secured two contracts worth Rs 3,700 crore from Ministry of Defence for supply of medium power radars ‘Arudhra’ and 129 DR-118 radar warning receivers for the Indian Air Force.
  • Tata Steel: The company acquired the balance 1.35 crore shares (24.06%) of indirect wholly owned subsidiary Tata Steel Advanced Materials from wholly owned unit Tata Steel Downstream Products for Rs 17.33 crore.

 

Nifty Outlook

The benchmark Nifty index erode two days of gain and ended lower at 17077 levels, down 75 points from its previous closing values after a highly volatile trading session.

The broader market fell in line with the benchmark as the Mid cap and Small cap indices were down nearly 0.5% each. The market breadth was inclined towards the declining side as 1443 declines were recorded against 813 advances at NSE.

Performance on the sectoral front was mix. Nifty PSU Bank index led the decline, plunged 1.74% followed by Realty index that was down just over 1%. On the other hand, Nifty FMCG, Pharma and Metal witnessed some buying interest and settled on a flat to positive note.

Technically, Nifty index ended on a weak note and immediate support is placed around 17000 levels. A decisive break below the same might drag it towards its recent swing low i.e. 16828-16800 zone.

 

Derivatives Overview & Outlook

Yesterday, Nifty & Banknifty futures added around 3% of open interest each as short buildup whereas Finnifty futures shed around 2.5% of open interest as long unwinding.

All F&O sectors settled lower. Amongst them, Capital Goods, Telecom and Textile stocks witnessed maximum addition of short positions.

On options front, Nifty will start the new contract week with maximum positions at 17100 PE and 18000 CE followed by 17100 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 995 Cr in the cash segment, sold stocks futures worth Rs 121 Cr and bought index futures worth Rs 1015 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1669 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17165-17250; Supports 17000-16900

Banknifty – Resistances 40000-40300; Supports 39400-39150

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.