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

The benchmark Nifty index opened with a gap on the higher side, managed to hold higher levels and settled at 19778 levels after adding nearly 100 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled on mixed note.
  • European equity markets ended on a negative note from 0.19% to 1.37%.
  • Asian markets are trading positive
  • Nifty is going to open by 100 point positive, GIFT Nifty is trading 60 points positive (as on 8:35AM)


News highlights from across the globe

  • Asian equity futures were mixed after the Federal Reserve hiked interest rates to a 22-year high and indicated that further tightening would be “data dependent.” Contracts for Japan fell slightly, those for Australia were little changed and Hong Kong futures rose, along with an index of U.S.-listed Chinese stocks.
  • In the U.S., stocks rebounded from session lows, with the Dow Jones Industrial Average notching its 13th straight advance — the longest winning run since 1987.
  • Brent crude was below $83 a barrel and the yield on the 10-year U.S. bond was trading at 3.87%

Important news updates from the domestic front

  • Aurobindo Pharma has set up step-down subsidiary Auro Pharma LLC in Russia to pursue pharma business operations in Russia. The drugmaker has proposed to make an initial investment of around $10 million. As much as 100% shares of Auro Pharma LLC are held by Auro Active Pharma Private Limited.
  • Mahindra and Mahindra acquired a 3.53% stake in RBL Bank. The stake was valued at Rs 417 crore. Mahindra may consider further investment subject to pricing, regulatory approvals and required procedures. The circumstance will the company’s stake in RBL Bank exceed 9.9%.
  • Poonawala Fincorp completed the sale of 24.9 crore equity shares held in unit Poonawalla Housing Finance, an entity affiliated with TPG Global. Poonawalla Fincorp has received a post-tax amount of Rs 3,004 crore for the stake sale.
  • Rail Vikas Nigam Government to sell up to 5.36% stake in Rail Vikas Nigam via offer for sale route. This includes a green shoe option of selling 1.96% stake. The offer opens Thursday for non-retail investors. The floor price for the OFS will be Rs 119 per share
  • Marico has acquired 32.75% stake in Satiya Nutraceuticals on a fully diluted basis and majority control overboard. It will buy the remaining 25.25% stake in tranches by May 2025.
  • Reliance Industries Jio Financial Services, BlackRock have signed joint venture pact to foray into asset management sector. The 50:50 joint venture, Jio BlackRock, will deliver tech-enable access to affordable investment solutions. Both parties will initially invest $150 million (Rs 1230.19 crore) each in the joint venture.
  • IDFC First Bank will discuss and consider a proposal to raise funds in the next one year by issuing equity shares or other equity-linked securities.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, managed to hold higher levels and settled at 19778 levels after adding nearly 100 points to its previous closing values.

Small cap index underperformed the benchmark as it was ended on a flat to positive note while Mid Cap index performed in line with the benchmark; resultant, flat Market breadth.

All sectoral indices barring, Nifty Auto & Consumer Durable, tracked at NSE settled in green. Amongst them, Nifty PSU Bank index was at the top of the tally gained, 1.5% followed by Nifty FMCG, Media, Realty and Private Bank index settled higher in range 0.68% to 1.19%.

Technically, Nifty index is well placed on multiple chart frames and closed nearly 19800 levels.  Nifty index is trading in a range for past couple of sessions. Going ahead, we reiterate our short term sideways view on Nifty index till it is trading in 19500-19900 levels.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures and Banknifty futures with increase in open interest by 2.8% and 8% respectively. Finnifty futures open interest was also increased by 12.3% without any significant change in price.

On the sectoral front, fresh long buildup was seen in Finance, Oil & Gas and Telecom stocks. Short short covering was seen in Automobile, Banking, Capital Good and Media shares. Long unwinding was seen in Textile and Technology shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 20000 CE and 19700 PE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 923 Cr in the cash segment, bought stocks futures and index futures worth Rs. 2709 Cr and Rs 381 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 470 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19905-19970; Supports 19610-19530

Banknifty – Resistances 46300-46440; Supports 45620-45440

Finnifty – Resistances 20770-20840; Supports 20450-20350






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