Daily Market Update- Equity 29 May 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 29 May 2023

The benchmark Nifty index opened with gap oh higher side and kept the bullish momentum throughout the session and settled at 18499, added nearly 200 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 1 to 2%
  • European equity markets also settled higher in range 0.74 to 1.23%
  • Asian equity markets are trading in green
  • SGX Nifty is trading up by 170 points (as on 8:30AM)


News highlights from across the globe

  • The agreement struck by Biden and McCarthy over the weekend needs to be passed by Congress, with the clock ticking down on June 5, when Treasury Secretary Janet Yellen has said the cash will run out. There is plenty in the deal that Democrats and Republicans won’t like. U.S. markets are closed on Monday for a holiday, as are those in the U.K. and some parts of Europe.
  • The yield on 10-year treasuries in the U.S. was trading at 3.80%. Crude was trading above $77-mark


Important news updates from the domestic front

  • Reliance Industries: Reliance Consumer Product, the FMCG arm of the company, partnered with U.S.-based General Mills to launch the international corn chip snacks brand Alan’s Bugles in India.
  • Tata Motors: Moody’s Investor Service changed the outlook for the company to positive from the outlook over robust credit metrics and affirmed its B1 rating.
  • Central Bank of India: RBI imposed a penalty of Rs 84.50 lakh on the Central Bank of India for failing to report certain accounts as fraud and recovering SMS alert charges from customers on a flat basis.
  • HDFC: Market regulator SEBI has granted final approval for the proposed change in control of HDFC Capital Advisers in its capacity as an investment manager of the HCARE Funds and investment manager cum sponsor of HDFC Build Tech Fund.
  • Lupin received approval from Health Canada to market a generic version of tiotropium bromide inhalation powder under the name Spiriva for the treatment of chronic obstructive pulmonary disease in Canada.
  • Godrej Properties increased its stake in Wonder City Buildcon to 100% from 74%, acquiring 2.9 crore shares (26% of overall shareholding) for Rs 45.13 lakh.
  • RITES/Power Finance Corporation: RITES and Power Finance Corporation signed an MoU to explore avenues of mutual collaboration for consultancy work in transport and logistics, energy, water and sanitation, communication, and social and commercial infrastructure.


Nifty Overview & Outlook

The benchmark Nifty index opened with gap oh higher side and kept the bullish momentum throughout the session and settled at 18499, added nearly 200 points to its previous closing values.

Midcap cap index performed in line with the benchmark while Small cap index underperformed the benchmark as it was up by 0.46%. Despite that market breadth was flat.

All the sectoral indices tracked at NSE settled higher. Amongst them, Nifty Media was at the top of the tally, up over 2% followed by FMCG, IT, Metal, Pharma and PSU Bank index that rose over 1% each.

Technically, Nifty witnessed breakout from the congestion zone (18050-14450 levels) of last 3 weeks. Going ahead, it is likely to trade northward in near term and we expect it to test 18600 and higher levels.


Derivatives Overview & Outlook

On Friday, Nifty, Banknifty & Finnifty futures added around 11%, 2% & 28% of open interest respectively as long buildup.

All F&O sectors settled higher. Amongst them, IT, Metal and Chemical stocks witnessed maximum addition of long positions while some short buildup was seen among Textile stocks.

On options front, put writing was seen at multiple strikes with maximum writing at 18400 strikes and maximum positions are at 18400 PE and 19000 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 5466 Cr in the cash segment, bought stocks futures worth Rs 2831 Cr and also bought index futures worth Rs 598 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3482 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18650-18725; Supports 18450-18380

Banknifty – Resistances 44150-44500; Supports 43750-43400


Important Results: Torrent Power, Allcargo Logistics, Adani Transmission, Ipca Laboratories, NHPC, KNR Constructions, Natco Pharma, Indian Railway Catering and Tourism Corporation, Sobha, Suprajit Engineering, Heidelberg Cement India, Jamna Auto Industries, SML Isuzu, NIIT, Campus Activewear, NOCIL, Dynamatic Technologies, Elpro International, Eureka Forbes, Evans Electric, Force Motors, Gensol Engineering, Gujarat Industries Power Co., Goodyear India, Gufic Biosciences, Hardwyn India, Hemisphere Properties India, Hikal, HLE Glascoat, ISGEC Heavy Engineering, ITI, Jindal Poly Films, Jubilant Pharmova,


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