Daily Market Update- Equity 3 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 3 Aug 2023

The benchmark Nifty index fell sharply and settled lower at 19526 levels, down over 200 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.98% to 2.17%
  • European equity markets ended settled over 1% lower
  • Asian markets are trading in red
  • GIFT Nifty is indicating a gap down opening for Nifty index as it is trading down by 50 points (as on 8:35AM)


News highlights from across the globe

  • Asian equity markets are trading lower after heavy selling in U.S. stocks as investors digested data showing a hot U.S. labor market that will keep pressure on the Federal Reserve to maintain the restrictive policy.
  • Brent crude was trading around $83 a barrel and the yield on the 10-year U.S. bond was trading at 4.08%


Important news updates from the domestic front

  • Unichem Laboratories: Promoter Prakash A Mody sold a 33.4% stake for Rs 945.35 crore to Ipca Laboratories via a block deal mechanism. Ipca Laboratories has made an open offer to the company’s public shareholders to acquire another 26% stake at Rs 440 apiece aggregating to Rs 805.44 crore.
  • Gujarat Gas will buy a 7.87% stake in GSPC LNG for Rs 100 crore.
  • Vedanta: Twin Star Holdings is likely to sell a 4.3% stake via a block trade, seeking at least Rs 4,136 crore. The shareholder may sell 16 crore shares at a floor price of Rs 258.5 apiece, representing a discount of 5% on Wednesday’s closing price.
  • UltraTech Cement will acquire a 26% stake in VEH Radiant Energy for Rs 15.10 crore. It has signed a share subscription and shareholders agreement as well as an energy offtake agreement with VEH Radiant Energy.
  • Mining companies: Both houses of Parliament have cleared the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 which opens up deep-seated minerals like lithium mining to private players.
  • JSW Steel signed a joint-venture deal with Japan’s JFE Steel to produce cold-rolled grain-oriented silicon steel. The project cost is Rs 5,500 crore and will be financed by a mix of equity and debt.
  • Torrent Power has incorporated its unit ‘Torrent Green Energy Pvt’ to carry business in the electricity generation from the renewable energy industry. It is yet to commence operations.


Nifty Overview & Outlook

The benchmark Nifty index fell sharply and settled lower at 19526 levels, down over 200 points from its previous closing values.

Broader market underperformed the benchmark as Small & Midcap index settled lower down 1.58% and 1.40% respectively.

All the sectoral indices tracked at NSE settled in red. Amongst them, Nifty Metal and PSU Bank led the declines; fell over 2% followed by Nifty Auto, Bank, Financial Services and Media indices that was down in range 1.31% to 1.66%.

Technically, Nifty index ended on a weak note and formed a bearish red candlestick on a daily chart. Going ahead, Nifty index is expected to trade with negative bias and likely to test 19300-19250 levels in near term.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in all three major indices as Nifty futures, Banknifty futures and Finnifty futures shed around 3.6%, 1.7% and 20.9% of open interest respectively.

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

On options front, call writing was seen at multiple strikes and maximum positions are at 19800 CE and 19500 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1878 Cr in the cash segment, sold stocks futures and index futures worth Rs. 2055 Cr and Rs 860 Cr respectively. DIIs too were net sellers in the cash segment to the tune of Rs 2 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19700-19760; Supports 19450-19370

Banknifty – Resistances 45400-45500; Supports 44870-44680

Finnifty – Resistances 20350-20410; Supports 19950-19830


F&O stocks in ban today: GNFC, HINDCOPPER, IBULHSGFIN, PEL




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