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

The benchmark Nifty index settled on a flat to positive note, closed shop at 18633 levels after adding 35 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled on flat  note
  • European equity markets ended lower by 0.28 to 1.40%
  • Asian equity markets are trading in red
  • SGX Nifty is down by 70 points (as on 8:30AM)


News highlights from across the globe

  • Asian markets are trading lower on Wednesday after momentum in U.S. equities faded and Congress considered the debt accord that’s needed to head off a catastrophic default.
  • The yield on 10-year treasuries in the U.S. was trading at 3.69%. Crude declined 4% below $76-mark


Important news updates from the domestic front

  • HDFC Asset Management Company: Keki Mistry has expressed the desire not to be re-appointed as a non-executive director of the company and will retire after the upcoming AGM on June 26.
  • Coal India will increase prices of high-grade coal by 8%, applicable across subsidiaries, leading to revenue rising by an additional Rs 2,703 crore during the current fiscal.
  • Mahindra & Mahindra incorporated a subsidiary Mahindra Last Mile Mobility to manage its three-wheeler and small commercial vehicle business. The auto major also incorporated a step-down subsidiary Icarus Hybren to run the renewable energy production and distribution business.
  • Axis Bank board appointed former RBI deputy governor NS Vishwanathan as additional director for a period of four years, up to May 29, 2027.
  • Aurobindo Pharma received tentative new drug application approval from U.S. FDA for HIV drugs Dolutegravir, Emtricitabine, and Tenofovir Alafenamide tablets.
  • Sun Pharmaceuticals Industries received approval from China’s National Medical Products Administration for its new drug application of tildrakizumab injection used to treat moderate-to-severe plaque psoriasis.
  • Lupin entered a strategic collaboration with Enzene Biosciences to launch Cetuximab in India, used in the treatment of head and neck cancer.


Nifty Overview & Outlook

The benchmark Nifty index settled on a flat to positive note, closed shop at 18633 levels after adding 35 points to its previous closing values.

Broader markets performed in line with the benchmark as Mid and Small cap index were up 0.38 & 0.22% respectively; resultant, market breadth was almost flat.

Performance on the sectoral front was mix. Media, Private Bank and FMCG Index were at the top of the tally, rose over 0.5% each. On the other hand, Metal index led the declines, fell nearly 1%.

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 18200 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen among Nifty, Banknifty & Finnifty futures on price front whereas on open interest front Nifty and Banknifty futures added around 4% & 3% of open interest and Finnifty futures shed around 37% of open interest.

On sectoral front, long buildup was seen among Cement and Banking stocks while some short buildup was seen among Chemicals and Metals stocks.

On options front, put writing was seen at multiple strikes along with call writing at 18850 strikes and maximum positions are at 18300 PE and 18800 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2086 Cr in the cash segment, sold stocks futures worth Rs 653 Cr and bought index futures worth Rs 241 Cr. DIIs were net sellers in the cash segment to the tune of Rs 439 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18850; Supports 18650-18550

Banknifty – Resistances 44750-45000; Supports 44200-43900


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