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

The Benchmark Nifty index ended on a flat to positive note, closed shop at 18691 levels with a marginal gain of 25 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled lower in range 0.65% to 1%
  • Barring CAC, other European equity markets settled on flat to negative note
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:30 AM)


News highlights from across the globe

  • Asian equity markets are trading mix on Tuesday after U.S. stocks fell amid concern that the Federal Reserve and its peers around the world will push economies into recession.
  • Futures for Hong Kong and Australian benchmarks pointed to gains while contracts for Japanese shares suggested a drop.
  • Tesla Inc. slumped more than 6% after Goldman Sachs Group Inc. joined the list of brokers turning less bullish on the electric-vehicle maker. U.S. equity futures inched higher in Asian trading while major currencies were little changed.
  • Brent crude rose to $74 a barrel and the yield on the 10-year U.S. bond was trading at 3.72%


Important news updates from the domestic front

  • ICICI Prudential Life Insurance has received a GST show cause cum demand notice for Rs 492 crore. The matter “relates to an industry-wide issue of input tax credit” and the company believes it has availed eligible input GST credit in compliance. It has deposited Rs 190 crore without accepting any liability.
  • Tech Mahindra‘s unit LCC France has approved a proposal to divest its 49% holding in SARL Djazatech and its subsidiary EURL LCCUK Algerie. Tech Mahindra said there was no contribution in terms of turnover or net worth in the consolidated turnover or net worth of the Company for the year ended March 31, 2023.
  • Bharti Airtel: Airtel Business Chief Executive Officer Ajay Chitkara has resigned. He will continue with the company till the third week of August. Airtel Business will operate as three business and channel segments – Global business, led by Vani Venkatesh, Domestic business, led by Ganesh Lakshminarayanan, and Nxtra Data Centers, led by Ashish Arora.
  • State Bank of India has relieved Swaminathan Janakiraman, managing director on the Central Board of the Bank from the position on June 26 to assume charge as Deputy Governor, Reserve Bank of India.
  • Aditya Birla Capital fixed the floor price at Rs 175.99 per share for qualified institutional placement of shares. Aditya Birla Capital, in a shareholder’s meeting on June 24, approved to issue equity shares on a preferential basis for an aggregate amount of up to Rs 1,250 crore.
  • Federal Bank has appointed Independent Director A P Hota as the part-time chairman with effect from June 29, 2023, till Jan. 14, 2026.
  • Axiscades Technologies has completed the refinancing of the existing debt of Rs 210 crore it borrowed for the acquisition of Mistral Solutions. The refinancing will bring down the interest cost of the company by over 400 basis points per annum.


Nifty Overview & Outlook

The Benchmark Nifty index ended on a flat to positive note, closed shop at 18691 levels with a marginal gain of 25 points to its previous closing values.

Broader markets outperformed the benchmark as Midcap and small-cap index ended higher by 0.78% and 0.62% respectively against the flat closing of the frontline index.

All the sectoral indices, barring PSU Bank and Oil & Gas, tracked at NSE settled in green. Pharma and Healthcare index gained over 1.5% each followed by Nifty Auto, Consumer Durable, Metal and FMCG index that were up in range 0.68% to 1.15% each.

Technically, Nifty index might trade in sideways manner in immediate near term in range 18500-18900 levels. Going ahead, we reiterate our bullish view on nifty index till it is holding above 18500 levels on closing basis. Crossover and sustenance above 18900 levels open the doors for further up move in near term.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures remained almost unchanged on the price front whereas on open interest front Nifty & Finnifty futures added around 2% & 25% of open interest while Banknifty futures shed around 4% of open interest.

Nifty, Banknifty and Finnifty futures have rolled 35%, 37% & 42% of open interest respectively into next contracts so far.

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


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 409 Cr in the cash segment, bought stocks futures worth Rs 1948 Cr and also bought index futures worth Rs 263 Cr. DIIs were net buyers in the cash segment to the tune of Rs 250 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18900; Supports 18650-18550

Banknifty – Resistances 43850-44100; Supports 43500-42300

Finnifty – Resistances 19630-19740; Supports 19460-19350


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