Daily Market Update- Equity 31 Jan 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 31 Jan 2023

Nifty index ended flat after a highly volatile trading session, closed shop at 17648 levels, up 44 points.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.77 to 1.96%
  • European equity markets ended flat
  • Asian equity markets are trading mix
  • SGX Nifty is up 90 points


News highlights from across the globe

  • The U.S. stocks pared their monthly gains on Monday, with the Nasdaq 100 suffering its worst day since Dec 22 and the S&P 500 falling the most since Jan 18 after declines in Apple Inc. and Microsoft Corp. weighed on both the indices.
  • The yield on 10-year Treasuries advanced four basis points to 3.55%. Crude price fell more than 2%


Important news updates from the domestic front

  • Life Insurance Corporation of India: The insurer told the exchanges that its exposure to Adani Group, including equity and debt, stands at Rs 36,474.78 crore, or 0.975% of its AUM. The company is sitting on mark to market gains to the tune of Rs 26,015 crore on account of its equity investments in Adani Group companies.
  • Punjab National Bank: AK Goel, the bank’s MD and CEO, informed that all exposures to Adani Group companies are backed by cash flows, and there is no exposure against shares. The public sector lender has an exposure of Rs 7,000 crore to the conglomerate’s companies.
  • Adani Enterprises: Abu Dhabi’s International Holding Company has committed to investing $400 million (Rs 3261 crore) in the company’s Rs 20,000-crore FPO, amounting to 16% of the follow-up offer. The issue was subscribed 3% at the end of its second day.
  • UltraTech Cement: The company’s UAE-based subsidiary UltraTech Cement Middle East Investments will acquire 70% stake in Oman-based Duqm Cement Project International for $2.25 million (Rs 18.34 crore) to ensure raw material stability.
  • Max Healthcare: The board of the company will mee ton Feb. 02, to consider raising funds via issuance of non-convertible debentures on private placement basis.
  • PVR/Inox Leisure: Inox Leisure said its merger with PVR will be completed in 30-40 days. The Mumbai bench of NCLT had allowed the proposed merger on Jan. 12.
  • Dish TV India: The company will hold an extraordinary general meeting via video conferencing on March 3.
  • Kansai Nerolac Paints: The company will sell its land at Kavesar, Thane, admeasuring 96,180 square meters, to Shoden Developers, a group company of House of Hiranandani, for total Rs 655 crore.
  • SRF: The board approved project for production of a range of specialty fluoropolymers at a cost of Rs 595 crore, which will be financed through a mix of debt and internal accruals. The capex is meant to expand the company’s product portfolio in line with the requirements of the market.
  • KEC international: The company has received orders worth Rs 1,131 crore across various verticals, including transmission and distribution, civil and cables.


Nifty Outlook

Nifty index ended flat after a highly volatile trading session, closed shop at 17648 levels, up 44 points.

Broader markets performed in line with benchmark as Mid & Small index ended flat while the market breadth was quite weak, 470 advances were recorded against 1849 declines at NSE.

Sector performance was mix, IT index outperformed benchmark as it gained 1.1% while Oil & Gas index lost maximum down 3.5% on back of steep slide in shares of ATGL, down 20%.

Going ahead sustenance above 17800 is the key for sustainable up move towards 18000 & higher levels while close below 17550 levels will lead to further sell-off.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty and Banknifty futures on price front whereas on open interest front Nifty futures shed around 3% of open interest and Banknifty futures added around 6% of open interest.

On the sectoral front, long buildup was seen among Chemicals, Infra and Textile stocks whereas short buildup was seen among Oil & Gas and Metal stocks.

On options front, Nifty has maximum positions at 17000 PE and 18000 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 6793 Cr in the cash segment, bought stocks futures worth Rs 555 Cr and sold index futures worth Rs 1607 Cr. DIIs were net buyers in the cash segment to the tune of Rs 5513 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17850-18000; Supports 17640-17500

Banknifty Futures – Resistances 41200-41600; Supports 41100-39700


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