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

Despite early losses, the benchmark Nifty index managed to recover from the day's low and settled on a flat note at 19646 levels, down just 14 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended on a positive note, gained 0.50% to 1.90%.
  • European equity markets ended on a flat to positive note.
  • Asian markets are trading positive
  • GIFT Nifty is indicating a gap up opening for Nifty index, trading at 19789.50 (as on 8:35AM)


News highlights from across the globe

  • Asian equity futures pointed to gains across the region when markets open on Monday following a rally on Wall Street on Friday.
  • Japan and Hong Kong rose at least 1% while those for Australia edged up 0.3%. Megacaps led gains in U.S. shares on Friday, with the Nasdaq 100 climbing almost 2% and the S&P 500 advancing 1%.
  • Brent crude was below $85 a barrel and the yield on the 10-year U.S. bond was trading at 3.96%


Important news updates from the domestic front

  • Hero Motocorp will close Harley-Davidson X440 online bookings on August 3. Production will start in September, and deliveries will commence in October.
  • Gland Pharma got zero observations and a ‘No Action Indicated’ classification from a U.S. FDA inspection at its Visakhapatnam Sterile Oncology facility.
  • Power Grid Corporation won bids for two inter-state transmission projects on a build, Own, operate, and Transfer basis in Rajasthan and Andhra Pradesh. Company will also raise up to Rs 5,700 crore in FY24 in multiple tranches by selling bonds of up to Rs 1,900 crore in the first tranche. Base size of the first tranche at Rs 500 crore, with a green shoe option of Rs 1,400 crore.
  • Piramal Enterprises has approved a buyback of 1.4 crore equity shares worth Rs 1,750 crore. The shares will be bought at Rs 1,250 apiece. The buyback size represents 5.87% of total paid-up equity share capital, and it will be open for a period of five working days.
  • RITES has appointed Krishna Gopal Agarwal as Chief Financial Officer of the company for a period of five years starting on or after August 1, 2023.
  • Shree Cement commenced commercial production at its clinker grinding unit in Purulia district of West Bengal, which has an annual cement capacity of three million tonnes.


Nifty Overview & Outlook

Despite early losses, the benchmark Nifty index managed to recover from the day’s low and settled on a flat note at 19646 levels, down just 14 points from its previous closing values.

The Mid and Small cap index outperformed the benchmark as both were up by 0.58% and 0.19% respectively against negative closing of the frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Realty & Media led the advances gained nearly 2% and 1.5% respectively followed by FMCG and Metal index that were up nearly 1% each. On the other hand, Nifty IT and Bank index were the worst performer, fell 0.86% and 0.46% respectively.

Technically, Nifty formed a Doji candlestick on daily chart which shows indecisiveness in price. Going ahead, we expect index to trade sideways in range 19980-19550 levels till it’s holding 19500 levels on a closing basis.


Derivatives Overview & Outlook

Last friday, long unwinding was seen in Nifty futures and Banknifty futures with decrease in open interest by 4% and 3% respectively while fresh short buildup was seen in Finnifty futures with 14% increase in open interest.

On the sectoral front, fresh long buildup was seen in Capital Good, FMCG, Reality, Media and Textile shares while  short buildup seen in Technology and Banking share.

On options front, call writing was seen at multiple strikes and maximum positions are at 19600 PE and 19700 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 1943 Cr in the cash segment, bought stocks futures worth Rs 1150 Cr and sold index future worth Rs 5255 Cr. DIIs were net buyer in the cash segment to the tune of Rs 5233 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19800-19860; Supports 19600-19530

Banknifty – Resistances 46000-46140; Supports 45300-45200

Finnifty – Resistances 20560-20640; Supports 20280-20200


F&O stocks in ban today:IBULHSGFIN




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