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

The benchmark nifty index extended losses for the second day and settled at 16945 levels, down 131 points from its previous closing values after a very volatile closing session.

Overview and Outlook

Global Market Update

  • US equity markets settled on a positive note
  • European equity markets ended lower in range 1.27% to 1.77%
  • Asian equity markets are trading mix
  • SGX Nifty is trading up by nearly 100 (as on 8:20 AM)


News highlights from across the globe

  • Asian markets trading in mixed sentiment. U.S. stock futures made small gains while a gauge of dollar strength fell fractionally in cautious trading early on Monday amid growing concern over the risk of recession.
  • Fed Minneapolis President Neel Kashkari said over the weekend that bank turmoil had increased the risk of a U.S. recession.
  • The yield on 10-year treasuries were trading at 3.37%. Crude prices were trading around $75-mark


Important news updates from the domestic front

  • Reliance Industries: The company appointed Srikanth Venkatachari as Chief Financial Officer with effect from June 1, 2023. Alok Agarwal, the incumbent CFO, will assume the role of Senior Advisor to RIL Chairman Mukesh Ambani.
  • Bharat Electronics: The company signed a contract worth Rs 3,000 crore with defence ministry for supply of integrated electronic warfare systems for the Indian Army. The company also received several contracts aggregating to Rs 1,300 crore during last fortnight from the Indian Navy.
  • Sun Pharmaceutical Industries: The pharma major will acquire 60% shareholding in animal healthcare player Vivaldis Health and Foods for a consideration of Rs 143.3 crore, and the remaining 40% in future as per certain terms and conditions.
  • Tata Steel: The company acquired 4.65 lakh shares of Tata Steel Utilities and Infrastructure Services at a premium of Rs 205 per share for Rs 10 crore.
  • Mahindra & Mahindra: The company will acquire around 7.68 crore shares of subsidiary Mahindra Aerospace, taking its shareholding to 100%, for Rs 31.47 crore.
  • Alembic Pharma: The U.S. FDA closed its inspection of the company’s injectable and ophthalmic facility located at Karkhadi with two minor procedural observations. The Brazilian Health Regulatory Agency ANVISA completed the GMP audit at API-III facilty at Karakhadi without any observations for the company’s 56 APIs.
  • Grasim Industries: The company leased 220 acres of land in Gujarat Industrial Development Corporation for Rs 254.7 crore for setting up manufacturing facilities in due course.


Nifty Outlook

The benchmark nifty index extended losses for the second day and settled at 16945 levels, down 131 points from its previous closing values after a very volatile closing session.

The broader market underperformed the benchmark as Nifty Small and Midcap were down over 1.5% each against a 0.77% decline in the frontline index. The market breadth was skewed in the favor of the sellers as 1778 declines were recorded against 565 advances at NSE.

All sectoral indices, tracked at NSE, settled lower. Amongst them, Nifty Metal, PSU Bank, Media and Realty tumbled over 2% each.

Technically, Nifty closed below the psychological support i.e.17000 levels, and formed a strong red bearish candle on the daily chart. Going ahead, Nifty index is likely to trade in sideways manner in 16800-17200 range before starting its next directional move.


Derivatives Overview & Outlook

On Friday, Nifty futures added around 2.5% of open interest as short buildup, Banknifty futures remained almost unchanged on open interest front and Finnifty futures shed around 19% of open interest as long unwinding.

All F&O sectors settled lower. Amongst them, Infra, Realty and Metal stocks witnessed maximum addition of short positions.

On options front, call writing was seen at 17000 strikes along and maximum positions are at 17000 PE and 18000 CE followed by 17100 CE.


FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 5739 Cr in the cash segment, sold stocks futures worth Rs 46 Cr and also sold index futures worth Rs 997 Cr. DIIs were net buyers in the cash segment to the tune of Rs 9432 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17050-17150; Supports 16860-16800

Banknifty – Resistances 39700-40000; Supports 39150-38850


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