Alphabet shares fall after cloud unit misses estimates - Daily Market Update- Equity 25 Oct 2023 | Globe Capital Market LTD.
Alphabet shares fall after cloud unit misses estimates – Daily Market Update- Equity 25 Oct 2023

Alphabet Inc.’s cloud computing unit reported a smaller than expected profit, raising concerns about the company’s position in a market that is critical to its future. Shares of Alphabet fell as much as 7.2% in late trading. As Google’s dominant search business matures, investors are looking to the cloud unit to take the lead on growth. The unit reported operating income of $266 million, missing estimates of $434 million.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.62% to 0.93%
  • European markets too ended on a positive note.
  • Asian equity markets are also trading in green.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19300 levels (as on 8:30AM).


News highlights from across the globe

  • Nasdaq 100 futures edged lower following mixed earnings that saw Microsoft Corp. climb and Alphabet Inc. drop in late U.S. trading. On Tuesday, the S&P 500 rose 0.7% and Nasdaq 100 rose 1%.
  • Brent crude was trading at $88 a barrel and the yield on the 10-year US bond was trading at 4.83%.


Important news updates from the domestic front

  • Tech Mahindra USA unit approved divesting 30% holding in Avion Networks Inc. The stake is to be divested for a consideration of $50,000, and the divestment is to be completed by Oct. 31.
  • Lupin received approval from the U.S. FDA for its abbreviated new drug application for Fluconazole Tablets, USP.
  • Krishna Institute of Medical Sciences subsidiary, KIMS Hospital Enterprises Pvt., acquired an additional 12.09% equity stake in Kondapur Healthcare for Rs 24.11 crore. The company’s total equity stake in Kondapur Healthcare now stands at 37.18%.
  • KPI Green Energy received an order from Sustainable Spinning and Commodities Pvt. for executing the Wind-Solar Hybrid Power Project for 4.20 MW capacity, comprising 4.20 MW wind and 3.60 MW solar capacity.
  • Adani Ports and SEZ incorporated a wholly owned subsidiary company, Udanvat Leasing IFSC, for Rs 2.5 crore. Udanvat will carry out the business of owning and leasing aircraft.
  • ONGC: Participates in the bidding process for the acquisition of a 100% stake of PTC Energy, a wholly owned subsidiary of PTC India.
  • Signatureglobal (India) entered into a sale deed for acquiring a land parcel measuring approximately 25.75 acres in Gurugram, Haryana, for the development of a group housing project.
  • Shoppers Stop has invested an additional Rs 5 crore in the preference share capital of its wholly-owned subsidiary, Global SS Beauty Brands. The investment was made by way of subscription to the rights issue of an additional 500 non-cumulative optionally convertible preference shares of Rs 1 lakh.


Nifty Overview & Outlook

Benchmark Nifty index ended sharply lower at 19281 levels, down over 250 points from its previous closing values.

Broader markets underperformed the frontline benchmark as Midcap and Smallcap index tumbled nearly 2% and 3.5% respectively, leading to weak market breadth.

All the sectoral indices tracked at NSE settled in red. Amongst them, Nifty Media index lost maximum, tumbled nearly 5% followed by Nifty Metal, PSU Bank and Realty indices that were down in range 2.5% to 4%.

Technically, Nifty index is trading on verge of fresh breakdown from an Head and Shoulder formation. Cross and sustenance below 19200 levels might take it towards 18800 levels in near term.


Derivatives Overview & Outlook

On Monday, short buildup was seen in Nifty futures with increase in open interest by over 2% whereas long unwinding was seen in Banknifty and Finnifty futures with decrease in open interest by 2.9% and 19.9% respectively.

On sectoral front, long unwinding was seen in majority of sectors led by Oil & Gas, Media, Banking, Capital Goods, FMCG and Technology stocks, whereas short buildup was seen in Infrastructure, Reality and Power stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 19000 PE and 19600 CE.


Institutional Trading Activity

On Monday, FIIs bought stocks worth Rs 252 Cr in the cash segment, bought stocks futures worth Rs 6372 Cr and sold index futures worth Rs 328 Cr. DIIs were net buyer in the cash segment to the tune of Rs 1112 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19460-19600; Supports 19170-19090

Banknifty – Resistances 43520-43940; Supports 42700-42350

Finnifty – Resistances 19560-19730; Supports 19260-19090






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