Daily Market Update- Equity 4 July 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 4 July 2023

The benchmark Nifty index opened with a gap on the higher side and once again settled at new record highs i.e. 19322 levels after adding 133 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled on a flat to positive note
  • European equity markets ended lower in a range 0.06% to 0.42%
  • Asian equity markets are trading mix
  • GIFT Nifty is little changed (as on 8:30 AM)


News highlights from across the globe

  • Asian equity markets are trading mix on Tuesday after equities on Wall Street scratched out marginal gains ahead of the Independence Day holiday.
  • Brent crude was trading below $75 a barrel and the yield on the 10-year U.S. bond was trading at 3.85%


Important news updates from the domestic front

  • Adani Transmission: GQG Partners bought an additional 3% stake worth Rs 2,633 crore in Adani Transmission. Its shareholding in the company increased to 6.54% from 3.54% earlier. The securities were acquired through the stock exchange settlement process by way of a bulk deal.
  • Adani Green Energy: The board will consider approving fundraising via the issue of equity shares or any other mode including private placement, QIP, and preferential issues on July 6. Adani Green Energy had canceled the meeting in May on account of the non-availability of directors.
  • IDFC, IDFC First Bank: IDFC is set to merge with IDFC First Bank. Shareholders will receive 155 IDFC First Bank shares for every 100 IDFC shares held. Due to the merger, the standalone book value per share of the bank would increase by 4.9%, as calculated on March 31 financials. The merger stands in the favor of the IDFC shareholders by over 16% as per the last closing price of both companies
  • IndusInd Bank: IndusInd Bank promoter IndusInd International Holdings Ltd approved fundraising of $1.5 billion. These funds are to be used to fund Reliance Capital’s Rs 9,650 crore buyout. IIHL also agreed to raise the stake in IndusInd Bank to 26% from 15%.
  • Reliance Industries: Reliance Jio launched an internet-enabled phone at Rs 999. The beta trial for the first 1 million Jio Bharat phones will begin on July 7. It includes unlimited voice calls and 14 GB of data for Rs 123 per month. Other phone brands including Karbonn, will adopt the Jio Bharat platform to build Jio Bharat phones.
  • Oil India revised the project capital cost of Numaligarh Refinery to Rs 7,231 crore from Rs 6,555 crore.
  • Torrent Power is implementing Green Hydrogen Pilot Project to blend in CGD. The Gorakhpur-based project will be completed in eight months. It will mix 2.5% in the CGD network. Aims to become an end-to-end green hydrogen solutions provider to Commercial & Industrial consumers. Envisages plan to develop green ammonia for exports purpose.
  • Hindustan Zinc: Mined metal production in Q1 rose 2% year-on-year to 257 kilotonnes. Saleable steel production remained unchanged at 260 kilotonnes. Wind power generation was down 13% year-on-year to 130 million units.
  • Vedanta: Total aluminum production in Q1 of fiscal 2024 rose 2% year-on-year to 579 kilotonnes. Mined metal output gained 2% from last year to its highest-ever 257 kilotonnes.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side and once again settled at new record highs i.e. 19322 levels after adding 133 points to its previous closing values.

Small cap index outperformed the broader market as it was up by 1.23% while Mid Cap index ended on a flat to positive note. Market breadth was almost flat.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, PSU Bank index led the rally, up over 3.5% followed by Nifty Oil & Gas, FMCG and Metal index that gained over 1% to 2% each. On the other hand, Nifty Pharma, IT and Healthcare Index witnessed some selling pressure, down 0.47% to 1.11% respectively.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is holding above 18750 levels on a closing basis and expected it to test 19500 and higher levels in the near term. Hence, traders should continue to follow buy on dip trading strategy.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures added around 4% to 13% of open interest each as long buildup.

On sectoral front, long buildup was seen among Oil & Gas, Media and Banking stocks whereas some short buildup was seen among IT and Textile stocks.

On options front, put writing was seem at multiple strikes and maximum positions are at 19300 PE and 19500 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1996 Cr in the cash segment, bought stocks futures worth Rs 229 Cr and also bought index futures worth Rs 434 Cr. DIIs were net sellers in the cash segment to the tune of Rs 338 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19500-19600; Supports 19300-19150

Banknifty – Resistances 45450-45700; Supports 44900-44650

Finnifty – Resistances 20400-20500; Supports 20150-20000


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.