Daily Market Update- Equity 26 June 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 26 June 2023

The benchmark Nifty index ended lower for the second consecutive session and settled at 18665 levels, down over 100 points from its previous closing values after a lackluster trading session.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.65% to 1%
  • European equity markets also settled lower in range 0.54% to 1%
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:30AM)


News highlights from across the globe

  • Oil and U.S. equity futures trading higher on Monday while major currencies traded within narrow ranges. Contracts for the S&P 500 and the Nasdaq 100 rose about 0.1%.
  • Brent crude rose to $74 a barrel and the yield on the 10-year U.S. bond was trading at 3.73%


Important news updates from the domestic front

  • Tata Consultancy Services said that the media report on the purported ‘recruitment scam’ is incorrect. It has launched a review to examine the allegations in the whistleblower complaint on media reports claiming a “recruitment scam.” The issue relates to a breach of the company’s code of conduct by certain employees and vendors providing contractors. The review found that it does not involve any fraud
  • HDFC Life Insurance received a GST demand notice for Rs 942 crore. The demand pertains to pertaining to period from July 2017 to FY 2022 and the matter relates to the claiming of an input tax credit against the supply of services that the authority believes are ineligible for such claims. The company has deposited Rs 250 crore under protest.
  • IPCA: U.S. FDA has issued a Form 483 with eight observations to the company’s Pithampur facility in Madhya Pradesh.
  • Rail Vikas Nigam bagged a project worth Rs 394.89 crore from Maharashtra Rail Corporation for the design and construction of an elevated metro viaduct. The project is expected to be executed in 30 months.
  • Axis Bank: RBI imposed a monetary penalty of Rs 30 lakh after the bank had levied penal charges in certain accounts for late payment of credit card dues even though the customers had paid the dues by the due date, through third-party platforms.
  • Jammu & Kashmir Bank: RBI imposed a monetary penalty of Rs 2.5 crore for non-compliance with directions issued by RBI on the Creation of a Central Repository of Large Common Exposures-Across Banks.
  • Bank of Maharashtra: RBI imposed a monetary penalty of Rs 1.45 lakh for non-compliance with directions issued by RBI on Loans and Advances – Statutory and Other Restrictions.
  • Zydus Lifesciences: The company’s subsidiary Zydus Animal Health and Investments has entered into an agreement to acquire a 6.5% stake in Mylab Discovery Solutions. It will buy the stake from Rising Sun Holdings for Rs 106 crore. The company aims to participate in the growing diagnostics space through increased penetration of in-clinic solutions with Point of Care Testing devices.


Nifty Overview & Outlook

The benchmark Nifty index ended lower for the second consecutive session and settled at 18665 levels, down over 100 points from its previous closing values after a lackluster trading session.

The Broader market underperformed the benchmark as Midcap and Small cap index were down over 1% each.

All the sectoral indices, barring Nifty Pharma, tracked at NSE settled in red. Amongst them, Nifty Media & Metal lost maximum, down over 2% followed by Nifty PSU Bank, Auto, Consumer Durable and Oil & Gas indices ended over 1% each.

Technically, Nifty index is facing resistance around its all-time highs i.e. 18887 levels. Going ahead, we uphold our bullish view on Nifty index till it is holding above the 18500 levels on a closing basis; however the possibility of some profit-taking can’t be ruled out at this juncture. Hence, we suggest traders to maintain a stock-specific trading approach and avoid over-leveraging.


Derivatives Overview & Outlook

On Friday, Nifty & Finnifty futures shed around 7% & 19% of open interest respectively as long unwinding whereas Banknifty futures added around 4% of open interest as short buildup.

All F&O sectors settled lower. Amongst them, Capital Goods, Media and Oil & Gas stocks witnessed maximum addition of short positions whereas most of the sectors fell on long unwinding.

On options front, call writing was seen at multiple strikes along with put writing at 18400 strikes and maximum positions are at 18700 PE and 18800 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 13731 Cr in the cash segment, sold stocks futures worth Rs 5050 Cr and also sold index futures worth Rs 666 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1693 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18900; Supports 18600-18500

Banknifty – Resistances 43850-44100; Supports 43500-42300

Finnifty – Resistances 19630-19740; Supports 19460-19350


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