Daily Market Update- Equity 30 June 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 30 June 2023

The benchmark Nifty index extended gains for the third straight trading session, settled at its all-time highs i.e. 18972 levels after adding over 150 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended mix, Nasdaq ended on a flat to negative note while Dow Jones was up by 0.80%
  • European equity markets also settled on a mix note
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is little changed (as on 8:30 AM)


News highlights from across the globe

  • Asian equity markets are trading higher on the last day of the quarter following a choppy session for U.S. equities as treasury yields soared on bets on further tightening by the Federal Reserve.
  • On Thursday, banks led gains on the S&P 500 as the biggest lenders passed the Fed’s stress test, clearing the way for payouts.
  • Brent crude rose to $74 a barrel and the yield on the 10-year U.S. bond was trading at 3.84%


Important news updates from the domestic front

  • Bharat Petroleum approved raising up to Rs 18,000 crore via a rights issue.
  • PowerGrid approved an aggregate investment of Rs 388.94 crore. It will invest in the establishment of a Telecom network for NTAMC at an estimated cost of Rs 164.38 crore, the Western Region expansion scheme at an estimated cost of Rs 115.09 crore, and ICT Augmentation at Navsari associated with the integration of 7 GW RE power from Khavda RE park at an estimated cost of Rs 109.47 Cr.
  • Tata Communications will acquire U.S.-based Kaleyra at an aggregate cost of $100 million (Rs 820 crore). The company will be acquired with a gross debt of $224.9 million and net debt of $149.9 million in its books.
  • SBI Life Insurance reappointed Mahesh Kumar Sharma as a Managing Director and CEO of the company.
  • HDFC acquired 612 equity shares of Xanadu Realty, representing 5.46% of its paid-up equity share capital upon conversion of 938 compulsorily convertible debentures held by it in Xanadu. The shares are acquired at Rs. 4,08,501 apiece, aggregating to a total consideration of Rs. 25 crores.
  • The Federal Bank: AP Hota will take charge as Part-Time Chairman of the bank with effect from June 29, 2023, till Jan. 14, 2026, following the retirement of C Balagopal.
  • Zee Entertainment has withdrawn its Expression of Interest in the resolution plan process for Reliance Broadcast Network.
  • Dalmia Bharat: Dalmia Bharat Sugar and Industries demerges to form Dalmia Bharat Refractories.


Nifty Overview & Outlook

The benchmark Nifty index extended gains for the third straight trading session, settled at its all-time highs i.e. 18972 levels after adding over 150 points to its previous closing values.

Midcap index performed in line with the benchmark while Small cap index underperformed the benchmark as it was up by 0.37%; resultant, market breadth was almost flat.

All the sectoral indices, barring Nifty Media, tracked at NSE settled in the green. Amongst them, Nifty Pharma & Metal was at the top of the tally rose nearly 1.50% followed by Healthcare and Auto index that were up 1.06% and 0.75% respectively.

Technically, Nifty witnessed breakout from its congestion zone (18500-18900 levels) and settled at its all-time highest levels. Going ahead we reiterate our bullish view on the Nifty index and we suggest traders to maintain buy on dips trading strategy till it is holding above 18650 levels on a closing basis.


Derivatives Overview & Outlook

On Wednesday, Nifty and Banknifty futures shed around 19% & 23% of open interest respectively as short covering on expiry day whereas Finnifty futures added around 28% of open interest as fresh long buildup.

Nifty futures rolled 76% of open interest into next contracts which was higher than the previous month’s rollover of 70% while Banknifty futures rolled 79% of open interest into next contracts which was in-line with previous month’s rollover of 78%.

On options front, Nifty will start the new weekly contract with maximum positions at 18900 PE and 19500 CE.


Institutional Trading Activity

During the week, FIIs bought stocks worth Rs 13832 Cr in the cash segment, bought stocks futures worth Rs 1611 Cr and also bought index futures worth Rs 2276 Cr. DIIs were net sellers in the cash segment to the tune of Rs 2762 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19075-19150; Supports 18900-18840

Banknifty – Resistances 44550-44800; Supports 44150-43900

Finnifty – Resistances 19900-20000; Supports 19700-19600


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