Oil and Bonds fell as investors temper middle east hedges - Daily Market Update - Equity 30 Oct 2023 | Globe Capital Market LTD.
Oil and Bonds fell as investors temper middle east hedges – Daily Market Update – Equity 30 Oct 2023

Oil slipped with gold and government bonds as investors unwound some of the geopolitical risk premium factored into global markets after Israel’s escalation of military operations in Gaza proceeded more cautiously than had been anticipated. Brent crude dropped below $90 a barrel, after rising by almost 3% on Friday, while WTI fell toward $84. S&P 500 futures contracts rose 0.3% after the gauge fell 0.5% on Friday, with risk appetite dented over worries including a persistently hawkish Federal Reserve and underwhelming corporate earnings.

Overview and Outlook

Global Stock Market Today

  • Barring Nasdaq, other US equity markets settled on negative note.
  • European markets ended on a negative note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19100 levels (as on 8:30AM).


News highlights from across the globe

  • Asian stocks are trading cautiously as investors prepare for the major central bank decision. Oil prices dropped as Israel’s ground invasion of Gaza has started slower than anticipate.
  • Brent crude was trading at $89.51 a barrel and the yield on the 10-year US bond was trading at 4.88%.


Important news updates from the domestic front

  • Tata Group: Taiwan-based Wistron Corp., a contract manufacturer for Apple Inc., will sell its India unit to the Tata Group for $125 million. Wistron will sell a 100% stake in its unit, Wistron InfoComm Manufacturing (India) Pvt., to Tata Electronics Pvt., following board approval.
  • Tata Power renewable energy arm inked a power delivery agreement with Mukand Ltd., a Bajaj Group company, for a 43.75 MW AC Group Captive Solar project. The installation will generate 99.82 MUs annually.
  • Bombay Dyeing Global Depository Receipt programme has been terminated, and the GDRs have been delisted from the Luxembourg Stock Exchange. Due to the termination of the GDR programme, Naira Holdings has surrendered their 27.40 lakh GDRs for cancellation and, subsequently, has taken possession of the equivalent corresponding equity shares of the company.
  • Strides Pharma Science Singapore unit, Strides Pharma Global, has entered into a binding agreement to sell its manufacturing facility for a consideration of $15 million to Rxilient Biohub.
  • IRB Infrastructure Developers has emerged as the preferred bidder for the project of tolling, operation, maintenance and transfer of a 316-kilometre highway stretch in the states of Uttar Pradesh and Madhya Pradesh. The IRB Infrastructure Trust is to pay an upfront concession fee of Rs 4,428 crore to NHAI for a revenue-linked concession period of 20 years.
  • SJVN unit, SJVN Green Energy, inked an MoU with Norway’s Ocean Sun for collaboration in the green and clean energy sector. The unit will develop and finance a pilot membrane-based floating solar project of about 2 MW in India, with Ocean Sun providing patented technological support for the same.
  • Dr Reddy’s Laboratories: The formulations manufacturing facility in Bachupally Hyderabad has been issued a Form 483 with 10 observations by the U.S. Food and Drug Administration.


Nifty Overview & Outlook

The benchmark Nifty index settled higher at 19047 levels after adding nearly 200 points to its previous closing values.

Smallcap index outperform the benchmark as it was up over 2% while Midcap index was up by 1.29%; resultant, strong market breadth.

All the sectoral indices tracked at NSE settled in green. Among them, Nifty PSU Bank index was at the top of the tally, gained over 4% followed by Nifty Auto, Bank, IT, Media and Reality index that settled higher in range 1.19% to 2.58%.

Technically, Nifty index took a pause after four days of decline. Going ahead, we reiterate our short term negative view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 19250 levels on a closing basis.


Derivatives Overview & Outlook

Last Friday, short covering was seen in Nifty futures with decrease in open interest by around 1%, whereas long buildup was seen in Banknifty and Finnifty futures with increase in open interest by 0.5% and 6.5% respectively.

All F&O sectors settled higher. Amongst them, Chemicals, Reality, Textile and Technology stocks witnessed maximum addition of long positions whereas short covering was seen in Capital goods, Finance and Power stocks.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 19000 PE and 19200 CE.


Institutional Trading Activity

Last Week, FIIs sold stocks worth Rs 11553 Cr in the cash segment, bought stocks futures worth Rs. 2197 Cr and sold index futures worth Rs 3995 Cr. DIIs were net buyer in the cash segment to the tune of Rs 11553 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19330-19410; Supports 18940-18820

Banknifty – Resistances 43330-43650; Supports 42250-41850

Finnifty – Resistances 19330-19550; Supports 18860-18700






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