US strikes two Iran-linked facilities in Syria - Daily Market Update - Equity 27 Oct 2023 | Globe Capital Market LTD.
US strikes two Iran-linked facilities in Syria – Daily Market Update – Equity 27 Oct 2023

The US said it hit two facilities in eastern Syria it believes were used by Iran’s Islamic Revolutionary Guard Corps and other groups, in what it called “self-defense strikes” following repeated attacks on US forces in the region. Israel’s military said it had killed Hamas’s deputy head of intelligence, who it accused of being responsible for helping plan the Oct. 7 attacks that killed some 1,400 people.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.76% to 1.76%
  • European markets ended on a negative note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19000 levels (as on 8:30AM).


News highlights from across the globe

  • Asian equities opened on a positive note on Friday as big tech stocks on Wall Street rallied in trade following good earnings.
  • Brent crude was trading at $88.38 a barrel and the yield on the 10-year US bond was trading at 4.86%.


Important news updates from the domestic front

  • Karnataka Bank approved allotment of equity share capital of Rs 800 crore on a preferential basis. The board approved allotment of 3.34 crore shares of a face value of Rs 10 apiece to HDFC Life Insurance, Bajaj Allianz Life Insurance, Quant Mutual Fund, Bharti AXA Life Insurance and Bajaj Allianz General Insurance at a price of Rs 239.52 apiece.
  • CARE Ratings: CARE Ratings (Africa), a subsidiary of the company, has incorporated a step-down subsidiary, i.e., CARE Ratings South Africa on Oct. 25. for providing credit rating services.
  • McLeod Russel: Borelli Tea Holdings, a wholly owned subsidiary of the company sold 100% of the capital contribution in Phu Ben Tea Company, a step-down subsidiary of the company, to TLK Agriculture for a net consideration of $2.15 million on Oct. 25. The sale is expected to be completed by Dec. 24.
  • Axis Bank appointed Munish Sharda as a Whole-time Director, designated as Executive Director, for three years, with effect from Nov. 1.
  • Lemon Tree Hotels has signed a license agreement for a 50-room property in Visakhapatnam under the brand ‘Red Fox Hotels’. The hotel is expected to be operational by FY 2026.
  • Praveg approved Eulogia Inn Pvt. into the company. A total of 17.33 lakh new equity shares of Praveg will be issued to the shareholders of Eulogia Inn.


Nifty Overview & Outlook

The benchmark Nifty index extended losses for the third consecutive trading session, settled at 18857 levels, down over 250 points from its previous closing values after highly volatile trading session on monthly derivatives expiry day.

Small cap index outperformed the broader markets as it was ended on a flat to negative note while Midcap index performed in line with the benchmark, down 1.57%.

All the sectoral indices tracked at NSE settled in red. Amongst them, Nifty Auto, Financial Services, Metal and Oil & Gas index led the declines, fell over 1.5% each.

Nifty index is falling on expected lines and appears to be in short term oversold zone, a relief rally cannot be ruled out at this juncture. Going ahead, we uphold our negative view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 19250 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty and Banknifty futures with decrease in open interest by 4.8% and 6.6% respectively on expiry day whereas short buildup was seen in Finnifty futures with increase in open interest by 3.3%.

Nifty futures rolled 83% of open interest into next contract which was higher than the previous month rollovers of 76% while Banknifty futures rolled 79% of open interest into next month which was lower than the previous month rollovers of 85%.

On options front, Nifty will start the first weekly contract of November series with maximum positions at 19000 CE and 17600 PE closely followed by 18800 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 7703 Cr in the cash segment, sold stocks futures and index futures worth Rs 6703 Cr and Rs 3405 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 6558 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19100-19230; Supports 18850-18700

Banknifty – Resistances 42960-43300; Supports 42250-41950

Finnifty – Resistances 19400-19550; Supports 18880-18600






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