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


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