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

The benchmark Nifty index opened with a gap on the higher side, kept the bullish momentum rolling throughout the session and settled higher at 19189 levels after adding over 200 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.84% to 1.45%
  • European equity markets also settled in a range 0.79% to 1.25%
  • Asian equity markets are trading higher
  • SGX Nifty is little changed (as on 8:40 AM)


News highlights from across the globe

  • Asian markets are trading higher on Monday as positive momentum from a rally on Wall Street and signs of moderating U.S. inflation underpinned support for global stocks.
  • The Nasdaq 100 rose almost 2% last week and notched its best-ever first half of a year, with Apple Inc. hitting the $3 trillion milestone along the way. The S&P 500 reached its highest since April 2022 and posted its best first half since 2019.
  • Brent crude was trading around $75 a barrel and the yield on the 10-year U.S. bond was trading at 3.84%

Important news updates from the domestic front

  • Adani Transmission: GQG Partners bought 2.13 crore shares in Adani Transmission in two bulk deals. GQG Partners Emerging Markets Equity Fund bought 72.59 lakh shares at Rs 786.19 per share in a bulk deal.  Goldman Sachs GQG Partners International Opportunities Fund has purchased 1.40 crore shares in Adani Transmission at Rs 786.19 apiece in a bulk deal. Fortitude Trade and Investment has sold 3.39
  • Vedanta: SEBI has imposed a penalty of Rs 30 lakh on the company for violating disclosure norms. Vedanta made incorrect disclosures about its plan to enter into the semiconductor business. Separately, the company said in an exchange filing that it will consider a potential strategic sale of its steel businesses to maximize stakeholder value. The company has engaged advisors to assist in this review
  • State Bank of India:  Chief Financial Officer Charanjit Surinder Singh Attra has resigned from the position. The resignation has been accepted and comes into effect post-business hours on June 30.
  • Hero MotoCorp:  The automaker raised the prices of its motorcycles and scooter by around 1.5% with effect from July 3, 2023. The price revision is part of a price review that the company undertakes from time to time.
  • Reliance Industries: RIL, bp has started the gas and condensate production from the third deepwater field in India’s KG D6 Block, MJ field. The output from the block at peak will account for one-third of India’s domestic gas production. MJ field, R-Cluster field, and Satellite Cluster are the three deepwater fields of block KG D6 off the east coast of India. Separately, RIL also sold 1.23 crore co
  • Mazagon Dock Shipbuilders has signed a contract worth Rs 2,724.63 crore with the Indian Navy for Medium Refit cum Life Certification of the second Shishumar class submarine INS Shankush.
  • Kansai Nerolac Paints: The board of the company approved the sale of its land in Thane and an additional area, measuring 97,090 square meters for a total consideration of Rs 671 crore to Shoden Developers. Shoden Developers is a group company of the House of Hiranandani.
  • Aditya Birla Capital completed Rs 3,000 crore fundraising. BlackRock, Abu Dhabi Investment Authority, and Massachusetts Institute of Technology were among key investors in the fundraiser. The funds were raised via a Rs 1,750 crore QIP and a Rs 1,250 crore preferential issuance of equity shares. The preferential equity shares were issued to Aditya Birla Capital’s promoter and promoter group entity


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, kept the bullish momentum rolling throughout the session and settled higher at 19189 levels after adding over 200 points to its previous closing values.

Broader market underperformed the benchmark as Midcap & Small Cap index were up by 0.86% and 0.42% respectively. Despite that market breadth was almost flat.

All sectoral indices, barring Nifty Metal, tracked at NSE settled in green. Amongst them, Nifty IT, Auto,  and PSU Bank led the rally rose over 2% each followed by Nifty Pvt Bank, and Pharma that gained over 1% each.

Technically, Nifty index is well placed on multiple chart frames and closed above 19150 levels. Going ahead, we reiterate our bullish view on Nifty index till it is holding above 18700 levels on a closing basis and expected it to test 19500 and higher levels in the near term.


Derivatives Overview & Outlook

On Friday, Nifty, Banknifty and Finnifty futures added around 10% to 14% of open interest each as long buildup.

Majority of F&O sectors settled higher. Amongst them IT, Auto and Banking stocks witnessed maximum addition of long positions.

On options front, put writing was seem at multiple strikes and maximum positions are at 18850 PE and 19500 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 22683 Cr in the cash segment, bought stocks futures worth Rs 2648 Cr and also bought index futures worth Rs 3816 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1564 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19350-19500; Supports 19170-19080

Banknifty – Resistances 45150-45500; Supports 44600-44300

Finnifty – Resistances 20150-20250; Supports 19950-19850


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