Daily Market Update- Equity 28 July 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 28 July 2023

The benchmark Nifty index settled lower below 19700 levels after a cut of over 100 points from its previous closing values on scheduled monthly derivatives expiry.

Overview and Outlook

Global Market Update

  • US equity markets ended on a negative note from 0.55% to 0.67%.
  • European equity markets ended on a positive note from 0.21% to 2.01%.
  • Asian markets are trading negative
  • GIFT Nifty is little changed indicating a gap down opening for Nifty index (as on 8:35AM)


News highlights from across the globe

  • Asian stocks fell after a report saying the Bank of Japan will discuss tweaking policy on Friday rumbled through financial markets. The Topix and Nikkei 225 equity indexes both slid more than 1%, leading declines in Asia. Futures for Hong Kong stocks also dropped.
  • U.S. equities had gained earlier on Thursday as domestic gross domestic product picked up steam in the second quarter, however the equities swung to losses and the markets ended lower.
  • Brent crude was above $84 a barrel and the yield on the 10-year U.S. bond was trading at 4.01%


Important news updates from the domestic front

  • Adani Enterprises has raised trade finance facility of $394 million, Rs 3,231 crore, from Barclays PLC and Deutsche Bank AG. This is to secure working capital for its integrated solar module manufacturing facility.
  • Lupin drug maker has addressed the concerns raised in the warning letter by U.S. FDA for its Goa and Pithampur facilities, through its corrective actions.
  • Indian Hotels or one of its subsidiaries will purchase 100% equity of Pamodzi Hotels PLC, a listed company in Zambia, from Tata International Singapore PTE Ltd. It will buy 90% stakefrom Tata, while acquiring 10% remaining stake through delisting pprocess in Zambia.
  • JK Lakshmi Cement has acquired 100% equity shareholding of Hidrive Developers and Industries for Rs 16.33 crore in cash. It has also agreed to raise up to Rs 2,500 crore through debt to partly finance its ongoing projects and also for various growth opportunities.
  • Rail Vikas Nigam has agreed to exercise green shoe option in Rail Vikas Nigam offer for sale. It will divest an additional 1.96% stake in Rail Vikas Nigam under its green shoe option. The non-retail portion got 273% demand on Day 1.
  • Ipca Laboratories: The Competition Commission of India has approved Ipca Laboratories proposal to acquire controlling stake in Unichem Laboratories. Ipca will acquire one-third of Unichem’s overall shareholding for a cash consideration of Rs 1,034.06 crore. It will make necessary open offer to public shareholders for 26% stake in Unichem as per SEBI regulations.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, failed to sustain at higher levels and settled lower below 19700 levels after a cut of over 100 points from its previous closing values on scheduled monthly derivatives expiry.

Broader market outperformed the benchmark as Midcap was up by 0.59% while small Cap index remain unchanged against decline over 0.5% in frontline index.

Majority of sectoral indices tracked at NSE settled in red. Amongst them, Nifty Auto, Private Bank led the declines, down over 1% each. On the other hand, Nifty Pharma, Healthcare and Realty Indices witnessed some buying interest, settled higher in range 2% to 3%.

Technically, Nifty index settled on a weak note and closed below 19700 levels.  Going ahead, we reiterate our short term sideways view on Nifty index till it is trading in 19500-19900 levels, either side breach from this range will open the doors for next directional move in that direction.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures shed 2.5% to 27% of open interest as long unwinding on expiry day.

Nifty futures rolled 83% of open interest into next contract which was significantly higher than the previous month rollovers of 76%. On the other hand, Banknifty futures rolled 77% of open interest into next contract which was slightly lower than the previous month rollovers of 79%.

On options front, Nifty will start the new weekly contract with maximum positions at 19800 CE and 19800 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3979 Cr in the cash segment, sold stocks futures and index futures worth Rs 4863 Cr and Rs 3090 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 2528 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19820-19900; Supports 19550-19480

Banknifty – Resistances 46080-46200; Supports 45330-45200

Finnifty – Resistances 20650-20730; Supports 20380-20280


F&O stocks in ban today: NIL




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