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

US economic growth in the first three months of the year was faster than previously estimated

Overview and Outlook

Global Market Update

  • US equity markets ended mix, Nasdaq was up 1.71% while Dow Jones ended on flat to negative note
  • European equity markets were down in range 0.31 to 0.74%
  • Asian equity markets are trading in mix
  • SGX Nifty is trading down by 40 points (as on 8:30AM)

 

News highlights from across the globe

  • US economic growth in the first three months of the year was faster than previously estimated the Commerce Department reported on Thursday. GDP, the broadest measure of economic output, increased at an annualized rate of 1.3% in the first quarter, up from an initial estimate of 1.1% reported last month.
  • Asian markets are likely to find some support from signs of progress in debt-ceiling talks and gains in U.S. equities with a frenzy of interest in the artificial intelligence sector.
  • Fitch Ratings warned that the US’s AAA rating is under threat, though it still expects politicians will reach an agreement before time runs out.
  • The yield on 10-year treasuries in the U.S. was trading at 3.81%. Crude was trading above $76-mark

 

Important news updates from the domestic front

  • Reliance Industries: Step-down FMCG subsidiary Reliance Consumer Products completed the acquisition of 51% controlling stake in Lotus Chocolates for an aggregate consideration of Rs 74 crore and subscribed to non-cumulative redeemable preference shares of the company for Rs 25 crore.
  • Praj Industries: The board approved forming a 50:50 joint venture with Indian Oil Corporation to set up biofuel production facilities and market CBG, Ethanol, SAF and various coproducts and intermediates.
  • Vedanta: Cairn Oil & Gas announced reserves and resources portfolio crossed 1.1 billion barrels of oil equivalent.
  • Tata Power: Life Insurance Corporation of India has increased its stake in the company to 7.94% from 5.91%.
  • Bata India: Life Insurance Corporation of India has increased its stake in the company to 6.53% from 4.5%.
  • Page Industries: Q4 FY23 (Consolidated, YoY) Revenue down 12.78% at Rs 969.09 crore, Ebitda down 49.71% at Rs 134.33 crore, Ebitda margin at 13.86% vs 24.04%, Net profit down 58.88% at Rs 78.35 crore, The board approved a fourth interim dividend of Rs 60 per share.
  • Gujarat State Fertilizers & Chemicals: Q4 FY23 (Consolidated, YoY) Revenue up 17.15% at Rs 2,383.87 crore, Ebitda down 22.19% at Rs 326.10 crore, Ebitda margin at 13.68% vs 20.6%, Net profit down 21.26% at Rs 224.91 crore. The company announced a dividend of Rs 10 per share.

 

Nifty Overview & Outlook

The benchmark Nifty index rebounded smartly from days’ low after two days of decline and settled on a flat to positive note at 18321 levels after adding 35 points to its previous closing values after a highly volatile trading session on monthly expiry day.

Mid-cap index outperformed the benchmark as it was up by 0.69% while Small cap index ended on a flat note. The market breadth was slightly tilted towards the advancing side.

Majority of sectoral indices tracked at NSE settled higher. Amongst them, Nifty Realty was the top performer, up over 1% followed by FMCG index that rose 0.61%. On the other hand, Nifty PSU Bank witnessed some selling pressure, settled lower by 0.45%.

Going ahead, we reiterate our sideways view on the Nifty index till it is trading in 18050-18450 range. Either side break from this range will set the tone for the next directional move in that direction.

 

Derivatives Overview & Outlook

Yesterday, Nifty & Banknifty futures remained almost unchanged on the price front and shed around 32% of open interest each as long unwinding on expiry day.

Nifty futures rolled 70% into next contracts which were slightly higher than the previous month rollovers of 64% whereas Banknifty futures rolled 78% of open interest into next contracts which were slightly lower than the previous month rollover of 81%.

On options front, Nifty will start the new weekly contract with maximum positions at 18300 PE and 18200 CE.

 

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 589 Cr in the cash segment, sold stocks futures worth Rs 582 Cr and also sold index futures worth Rs 988 Cr. DIIs were net buyers in the cash segment to the tune of Rs 338 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18430-18500; Supports 18250-18125

Banknifty – Resistances 44150-44450; Supports 43700-43400

 

Important Results: Oil and Natural Gas Corporation, Mahindra & Mahindra, Samvardhana Motherson International, Sun Pharmaceutical Industries, Bharat Heavy Electricals, Chambal Fertilisers & Chemicals, BEML, Maharashtra Seamless, Power Mech Projects, City Union Bank, TCI Express, Indigo Paints, , Sunteck Realty, Nucleus Software Exports, Info Edge (India), NCC, Nexus Select Trust, Optiemus Infracom, PNC Infratech, Polo Queen Industrial and Fintech, Precision Camshafts, Primo Chemicals, Puravankara, Shree Renuka Sugars, Repco Home Finance, Savita Oil Technologies, Steel Strips Wheels, Styrenix Performance Materials, Supriya Lifescience, TCPL Packaging, Tide Water Oil (India), Vidhi Specialty Food Ingredients,

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