Oil holds decline as OPEC+ dispute clouds outlook for production - Daily Market Update - Equity 24 Nov 2023 | Globe Capital Market LTD.
Oil holds decline as OPEC+ dispute clouds outlook for production – Daily Market Update – Equity 24 Nov 2023

Oil held the bulk of a decline after the OPEC+ alliance was forced to delay a critical meeting amid a dispute over output quotas, casting a pall of uncertainty over the group’s production policy for next year. Global benchmark Brent edged higher to trade near $82 a barrel after dropping 1.3% over the previous two sessions, while US counterpart West Texas Intermediate was below $77 a barrel following the Thanksgiving break.

Overview and Outlook

Global Stock Market Today

  • US equity markets closed on accounts of Thanks giving day.
  • European equity markets ended on positive note.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed & Nifty futures likely to open around 19871 levels (as on 8:30AM)


News highlights from across the globe

  • Indices in Asia opened higher on Friday following the release of inflation data in Japan. All indices rose except South Korea’s Kospi.
  • Japan’s key inflation measure accelerated for the first time in four months, going against the Bank of Japan’s view that it will decelerate, likely strengthening expectations of policy normalization.
  • Brent crude was trading at $81.22 a barrel and the yield on the 10-year US bond was trading at 4.46%.


Important news updates from the domestic front

  • Lupin has received approval from the U.S. FDA for Bromfenac Ophthalmic Solution, 0.07%, and tentative approval from the U.S. FDA for Canagliflozin Tablets.
  • LTIMindtree: The global technology consulting and digital solutions company, launched the Quantum-Safe Virtual Private Network (VPN) link in London in collaboration with Quantum Xchange and Fortinet.
  • Radico Khaitan announced the launch of Magic Moments Remix Pink Vodka to cater to the growing demand for the coloured and flavoured beverage alcohol category.
  • Karnataka Bank tied up with Bajaj Allianz Life Insurance Company Limited to distribute life insurance products.
  • JSW Steel completes the last tranche of its Rs 750 crore investment in JSW Paints, and the company now holds a 12.84% stake in JSW Paints.
  • Indian Hotels has made an investment of Rs 55 crore in Genness Hospitality Private Ltd. and 35 crore in Qurio Hospitality Private Ltd. by way of subscription to rights issues.
  • Castrol India entered into a tripartite agreement with KFin Technologies Ltd. and Link Intime India Pvt.
  • JM Financial received a warning letter from SEBI for a merchant banker rule violation.


Nifty Overview & Outlook

Nifty index settled on flat to negative note after a lackluster trading session, closed shop at 19802 levels after a cut of 10 points from its previous closing values.

Small cap index outperformed the benchmark as it was up 0.70% while Midcap index settled on a flat note.

Performance on the sectoral front was mix. Amongst them, Nifty Realty Index was the top performer, up over 1% followed by Nifty Oil & Gas and Metal index that were settled higher, up 0.90% and 0.53% respectively. On the other hand, Pharma and Healthcare index witnessed some selling pressure, down 1.53% & 1.43% respectively.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 19500 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, no significant change was seen in Nifty futures on price front but open interest increased by 5.1% showing short buildup. Short covering was seen in Banknifty futures with decrease in open interest by 2.4% whereas Finnifty futures witnessed long buildup with increase in open interest by 4.6%.

On sectoral front, long buildup was seen in Automobile, Chemicals, Oil & Gas and Textile stocks whereas short buildup was seen in Pharma stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 19800 PE and 20000 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 256 Cr in the cash segment, bought stocks futures worth Rs 936 Cr and sold index futures worth Rs 554 Cr. DIIs were net buyer in the cash segment to the tune of Rs 457 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19950-20030; Supports 19670-19600

Banknifty – Resistances 44100-44300; Supports 43350-43000

Finnifty – Resistances 19780-19890; Supports 19430-19340




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