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

The benchmark nifty index settled higher at 17081 levels, added 129 points to its previous closing values after a highly volatile trading session on monthly expiry.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.43% to 0.73%
  • European equity markets gained 0.74% to 1.25%
  • Asian equity markets are trading in green
  • SGX Nifty is little changed (as on 8:15 AM)


News highlights from across the globe

  • Asian markets are trading higher after U.S. technology shares drove gains on Wall Street, despite pressure on financials after Federal Reserve officials reiterated their resolve to lower inflation.
  • The gains on Wall Street came as market watchers digested a round of Fed commentary suggesting more monetary tightening was necessary, even after the collapse of three U.S. banks earlier this month.
  • The yield on 10-year treasuries was trading at 3.55%. Crude prices rose to $79-mark


Important news updates from the domestic front

  • Hero MotoCorp: Two-wheeler maker Hero MotoCorp Ltd. on Thursday said it has elevated Niranjan Gupta as its new chief executive officer. Gupta, currently designated as chief financial officer, head-strategy and M&A, takes over as the CEO with effect from May 1, 2023, according to an exchange filing. Pawan Munjal will continue as executive chairman and whole-time director on the company’s board, it
  • Bharat Electronics: The Ministry of Defence signed two contracts with the company jointly worth Rs 2,394 crore. The first contract worth Rs 1,982 crore is for procurement of automated air defence control and reporting system ‘Project Akashteer’ for Indian Army. The second contract of Rs 412 is for acquisition of Sarang electronic support measure systems and associated engineering support package f
  • Tata Power: Tata Power Solar Systems, a wholly owned subsidiary of the company, received the letter of award of Rs 1,755 crore to set up a 300 MW solar project for NLC India in Rajasthan.
  • JSW Steel: The company has been selected as the preferred bidder by the Ministry of Coal for two coal blocks in Jharkhand and one in Chhattisgarh. The two mining blocks in Jharkhand hold 108.85 million tonnes and 235.72 million tonnes of coal reserves, whereas the block in Chhattisgarh has 1,376.06 million tonnes of coal reserves.
  • JK Cement: The company expanded grey cement capacity by 2 million tonnes per annum by increasing capacity at Mangrol, Muddapur, Jharli and Aligarh facilities by 0.5 MTPA each. The overall grey cement capacity of the company now stands at 20.67 MTPA.
  • Reliance Industries: Sintex Industries allotted 600 crore shares worth Rs 600 crore and 900 crore debentures worth Rs 900 crore to Reliance Industries under the resolution plan for the former. The 59.93 crore shares of Sintex Industries issued prior to the approval of the resolution plan have been cancelled.
  • HDFC: The mortgage lender will 19.36 lakh shares of Next Gen Publishing, representing latter’s 16.13% shareholding, for Rs 1.7 crore.


Nifty Outlook

The benchmark nifty index settled higher at 17081 levels, added 129 points to its previous closing values after a highly volatile trading session on monthly expiry.

Broader markets outperformed the benchmark as Mid and Small cap index were up by over 1.5% each. The market breadth was heavily inclined towards the advancing side as 1643 advances were recorded against 651 declines at NSE.

All sectoral indices tracked at NSE settled in the green. Amongst them, Nifty PSU Bank was at the top of the tally rose over 3% followed by Nifty Realty, Metal, and Media index that were up by nearly 2.5% each.

Going ahead, we reiterate our sideways view on the Nifty index till it is trading in 16800-17200 range. Either side break from this range will set the tone for the next directional move in that direction.


Derivatives Overview & Outlook

On Wednesday, Nifty & Banknifty futures shed around 18% & 12% of open interest respectively as short covering.

Nifty futures rolled 74% into next contracts which were in line with previous month rollover of 73% while Banknifty futures rolled 93% into next contracts which were higher than previous month rollovers of 83%.

On options front, Nifty will start the new weekly contract with maximum positions at 17000 PE and 17800 CE followed by 17000 CE.


FII & DII Trading Activity

On Wednesday, FIIs bought stocks worth Rs 1245 Cr in the cash segment, bought stocks futures worth Rs 16 Cr and also bought index futures worth Rs 2027 Cr. DIIs were net buyers in the cash segment to the tune of Rs 823 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17200-17260; Supports 17000-16900

Banknifty – Resistances 40125-40300; Supports 39600-39350


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