Japan's bond yield rises to decade high before BOJ's policy meet - Daily Market Update - Equity 31 Oct 2023 | Globe Capital Market LTD.
Japan’s bond yield rises to decade high before BOJ’s policy meet – Daily Market Update – Equity 31 Oct 2023

Japan’s 10-year bond yield climbed to a new decade-high following a report the central bank will discuss a further tweak to its yield-curve control at a policy meeting ending Tuesday. The yen weakened. The yield on the nation’s 10-year bond rose to 0.955%, approaching the Bank of Japan’s 1% ceiling before trimming its advance.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 1.16% to 1.58%
  • European markets too ended on a positive note.
  • Asian equity markets are trading mixed.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19200 levels (as on 8:30AM).


News highlights from across the globe

  • Asia stocks are trading mix. The yen rallied on a report that the Bank of Japan may raise a limit on government bond yields.
  • Brent crude was trading at $88.05 a barrel and the yield on the 10-year US bond was trading at 4.90%.


Important news updates from the domestic front

  • Tata Motors said an arbitration panel has ruled in its favour to recover Rs 766 crore with interest from the West Bengal Industrial Development Corp. for the Singur-Nano project that the company was forced to scrap.
  • Power Grid Corp acquired Beawar Dausa Transmission via tariff-based competitive bidding for an aggregate value of nearly Rs 21.37 crore, subject to adjustment.
  • Gulf Oil Lubricants acquired 51% of Tirec Transmission.
  • JK Cement proposed to acquire shares of four companies under captive power plant mode through SPV.
  • Chemplast Sanmar: The custom-manufactured chemical division signed an LOI with a global agrochemical innovator to manufacture a new pipeline of active ingredients for five years. Commercial supplies are expected to start in CY2025.
  • DCM Shriram will set up a sugar plant in Loni, Uttar Pradesh, to increase capacity to 9,400 TCD from 7,300 TCD.
  • HFCL launched a comprehensive suite of next-gen connectivity products and solutions at India Mobile Congress 2023.
  • Colgate Palmolive received a transfer pricing order of Rs 170 crore from the Income Tax Authority for AY 2021–22. It will make an application before the Dispute Resolution Panel.
  • PSP Projects bagged work orders worth Rs 200.25 crore in Gujarat. The total order inflow for FY24 amounts to Rs 958.63 crore.


Nifty Overview & Outlook

The benchmark Nifty index settled higher at 19047 levels after adding nearly 100 points to its previous closing values.

Performance on the broader front was mix. Small & Mid Cap index underperformed the benchmark as both ended on a flat note against 0.49% advance of frontline index.

Majority of sectoral indices, tracked at NSE settled in green. Amongst them, Nifty Realty and Oil & Gas index  led the advances, rose 2.14% and 1.34%  respectively. On the other hand Nifty Auto and Consumer Durable witnessed some selling pressure, down 0.90% and 0.51% respectively.

Technically, Nifty index formed bullish candlestick on a daily chart which indicates strength in price. Going ahead, Nifty index might move towards the next hurdle of 19250-19300 levels on the higher side.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Banknifty and Finnifty futures with increase in open interest by 2.2%, 6.14% and 42.76% respectively.

On sectoral front, long buildup was seen in Cement, Oil & Gas, Realty stocks whereas short buildup was seen in Finance and FMCG stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19000 PE and 19500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1762 Cr in the cash segment, sold stocks futures and index futures worth Rs. 1658 Cr and Rs 298 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1328 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19375-19520; Supports 19000-18850

Banknifty – Resistances 43550-43900; Supports 42700-42370

Finnifty – Resistances 19400-19550; Supports 18900-18750






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