Daily Market Update- Equity 27 Jan 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 27 Jan 2023

Benchmark Nifty index settled sharply lower at 17892 levels, down 226 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.6 to 1.76%
  • European equity markets too settled in green
  • Majority of Asian equity markets are also trading in green
  • SGX Nifty is up 62 points


News highlights from across the globe

  • Asian markets followed the U.S. equities higher on Friday after a rally in tech shares helped investors shake off mixed economic data, but the risk of recession persists.
  • The S&P 500 closed at the highest level in more than a month, reflecting a jump in tech stocks. The Nasdaq 100 rose 2% to the highest level since September, led by an 11% gain for Tesla Inc. as Elon Musk teased potential for the carmaker to produce 2 million vehicles this year.
  • Crude price were above $87 per barrel levels.


Important news updates from the domestic front

  • Adani Enterprises: The company raised Rs 5,984.9 crore from allocating 1.83 crore equity shares to 33 anchor investors under the anchor portion of its Rs 20,000-crore FPO at Rs 3,276 per share.
  • Future Retail: Kishore Biyani, founder of Future Group, resigned from the position of executive chairman and director of the company.
  • Happiest Minds Technologies: The company acquired 100% stake in Sri Mookambika Infosolutions for a consideration of Rs 111 crore.
  • SJVN: The company sold its entire shareholding in Bhutanese joint venture Kholongchhu Hydro Energy as per directions from India’s Ministry of Power, for Rs 354.71 crore.
  • ONGC: The company appointed chairman Arun Kumar Singh as the chief executive officer.
  • LTIMindtree: The company partnered with Microsoft and Duck Creek Technologies to build a solution that will enable insurers to migrate their on-premises core systems to the cloud quickly and efficiently.


Nifty Outlook

Benchmark Nifty index settled sharply lower at 17892 levels, down 226 points from its previous closing values.

Broader markets too fell in line with benchmark. Market breadth was heavily tilted towards the declining side as 1729 declines were recorded against 530 advances at NSE.

All sectoral indices settled in red. Amongst them, Banking space was the worst hit as PSU bank index was down over 3.5% followed by PVT bank index that was down over 2%.

Technically, Nifty index is trading in a range, 17750-18250 levels, for past few weeks. Going ahead, either side break from this range on closing basis will start the next directional move in that direction.


Derivatives Overview & Outlook

On Wednesday, both Nifty and Banknifty futures shed around 24% & 10% of open interest respectively as long unwinding on expiry day.

Nifty and Banknifty futures rolled 79% & 84% of open interest respectively into next contracts which was in line with previous month rollovers of 79% & 86% respectively.

On options front, Nifty will start the new weekly contracts with maximum positions at 17500 PE and 19000 CE closely followed by 18000 CE.


FII & DII Trading Activity

On Wednesday, FIIs sold stocks worth Rs 2394 Cr in the cash segment, sold stocks futures worth Rs 569 Cr and also sold index futures worth Rs 3616 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1378 Cr.


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