Five-day market slide wipes off Rs 14.60 lakh crore in investor wealth - Daily Market Update- Equity 26 Oct 2023 | Globe Capital Market LTD.
Five-day market slide wipes off Rs 14.60 lakh crore in investor wealth – Daily Market Update- Equity 26 Oct 2023

Equity investors became poorer by Rs 14.60 lakh crore in five days of market slump amid mounting tensions in the Middle East and higher valuations of Indian stocks. Falling for the fifth day running, the 30-share BSE Sensex tanked 522.82 points, or 0.81%, to settle at 64,049.06. During the day, it dropped 659.72 points, or 1.02%, to 63,912.16. In five days, the BSE benchmark has plunged 2,379.03 points, or 3.58%.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.32% to 2.43%
  • European markets ended on a positive note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19025 levels (as on 8:30AM).


News highlights from across the globe

  • Asian stocks witnessed a negative open as U.S. shares slumped following a batch of poor corporate earnings.
  • Contracts for U.S. equities declined in Asian trading following Meta Inc.’s fall in after-market trading after reporting its earnings. The tech-heavy Nasdaq 100 index slid 2.5% on Wednesday, weighed by Google’s parent Alphabet Inc.’s disappointing cloud figures and Texas Instruments Inc.’s bearish forecasts.
  • Brent crude was trading at $90 a barrel and the yield on the 10-year US bond was trading at 4.95%.


Important news updates from the domestic front

  • Tech Mahindra board approved merger of three of the company’s wholly owned subsidiaries with itself. Perigord Premedia India, Perigord Data Solutions India and Tech Mahindra Cerium will be incorporated under the rearrangement scheme.
  • Share India Securities board approved the proposal for amalgamation of Silverleaf Capital Services as a going concern with the company.
  • Samvardhana Motherson International has initiated phased operational reconfiguration of a few of its European units. The operational reconfiguration entails a one-time cost of 25-30 million euros.
  • Karnataka Bank has entered into a partnership agreement with Vakrangee for providing business correspondent banking services through Vakrangee Kendra outlets on a pan India basis.
  • Hero Motocorp has made an investment of Rs 15 crore by way of rights issue in its subsidiary company, HMC MM Auto. The company’s shareholding in its unit has increased from 60% to 66.32%.
  • SH Kelkar and Co has invested 4.99 million euros in its Europe subsidiary, Keva Europe BV. The investment was made by subscribing to 1.39 million equity shares at 3.59 euros per share.


Nifty Overview & Outlook

The benchmark Nifty index extended losses for the second consecutive trading session and settled at 19122 levels, down over 150 points from its previous closing values after highly volatile trading session.

Broader markets too ended on a weak note as Midcap & Small cap index was down 0.66% & 0.24% respectively.

All the sectoral indices, barring Nifty Metal and PSU Bank, tracked at NSE settled in red. Amongst them, Nifty Media led the declines, fell over 1.5% followed by Nifty Pvt Bank, Financial Service, IT and Healthcare indices that settled down nearly 1% each.

Technically, Nifty index is falling on expected lines as anticipated in the previous posts. Going ahead, we reiterate our bearish view on Nifty index and suggest traders to maintain sell on rise trading approach till it is trading below 19400 levels on closing basis on the down side immediate support is placed around 18800 levels.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty and Finnifty future with increase in open interest by 3.7% and 2.9% respectively, whereas long unwinding was seen in Banknifty futures with decrease in open interest by 1.9%.

Majority of F&O sectors settled lower. Amongst them, Media, Reality and Power stocks witnessed maximum addition of short positions whereas most of the sectors were down on long unwinding.

On options call writing was seen at multiple strikes and maximum positions are at 19000 PE and 19500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4237 Cr in the cash segment, bought stocks futures worth Rs 2155 Cr and sold index futures worth Rs 152 Cr. DIIs were net buyer in the cash segment to the tune of Rs 3569 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19380-19500; Supports 19120-19000

Banknifty – Resistances 43180-43550; Supports 42320-41950

Finnifty – Resistances 19400-19550; Supports 19050-18800






Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.