Daily Market Update- Equity 5 Jan 2023 | Globe Capital
05-Jan-2023
Daily Market Update- Equity 5 Jan 2023

Nifty index settled near the day’s low after a volatile trading session, closed shop at 18042 levels, down 189 points.

Overview and Outlook

Global Market Update

  • US equity markets ended settled higher by 0.75%
  • European equity markets were up in range by 0.4 to 2.3%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is little changed, up by 32 points (as on 8:18 AM)

 

News highlights from across the globe

  • Asian markets headed towards a positive opening on Thursday after the U.S. shares snapped its two-day losing streak.
  • The S&P 500 finished higher on Wednesday but below its session peak after volatile trading following the release of minutes from the Federal Reserve’s last meeting, which showed officials laser-focused on controlling inflation even as they agreed to slow their pace of interest rate hikes.
  • Crude price was down nearly 5% amid demand concerns arising from longer-than-expected recovery in China.

 

Important news updates from the domestic front

  • Mahindra & Mahindra Financial Services: The RBI has lifted restrictions against Mahindra Finance on appointing third party agents for recovery or repossession. Also, the board of the company will meet on Feb. 3 to consider its financial results for the quarter ended December 2022.
  • NTPC/ Hindustan Petroleum: NTPC Green Energy, a subsidiary of NTPC, signed an MoU with HPCL to develop renewable energy projects and supply 400 MW green energy to latter’s facilities.
  • IRB Infrastructure Developers: The board approved the proposal to split each existing share with a face value of Rs 10 into 10 shares with a face value of Re 1 each.
  • Bharti Airtel: The special committee of directors approved allotment of 83.5 lakh shares at a conversion price of Rs 521 apiece after certain holders converted FCCBs worth $60.4 million.
  • Hindustan Unilever: The company completed the acquisition of 19.8% stake in Nutritionalab for Rs 70 crore.
  • Hindustan Petroleum Corporation: The company forayed into petrochemical business with pre-marketing of HP Durapol branded polymersin a pre-cursor to setting up a 9MMTPA refining and petrochemical complex in Rajasthan.
  • Tata Power: The company will compute and claim tariff from the beneficiaries based on the Central Electricity Regulatory Commission order that grants compensation for emergnecy supply from its Mundra plant.
  • Krishna Institute of Medical Sciences: The board apporved raising funds via issuance of non-convertible debentures of Rs 300 crore in one or more tranches.
  • National Aluminium Co.: The company’s board will meet on Jan. 17 to consider interim dividend for the current fiscal.

 

Nifty Outlook

Nifty index settled near the day’s low after a volatile trading session, closed shop at 18042 levels, down 189 points.

Broader markets performed in line with benchmark, Mid & Small cap index were down 1.1% and 0.95% respectively, leading to fairly weak market breadth.

All sector gauges tracked at NSE settled in red, Metal & Realty index were at the bottom of the tally, down over 2% each.

Nifty index is looking quite weak on daily chart, decisive fall and sustenance below 18000-mark will quickly take index towards 17800 levels.

 

Derivatives Overview & Outlook

Nifty January futures ended at 18,102.95, a discount of 214.35 points. Nifty January futures fell 1.76% and 3,853 shares in Open Interest.

Nifty Bank January futures ended at 43,150, a discount of 459.30 points. Nifty Bank January futures rose 2.23% and 2,046 shares in Open Interest.

 

FII & DII Trading Activity

Foreign institutional investors (FII) sold shares worth Rs 2,620.89 crore, while domestic institutional investors (DII) bought shares worth Rs 773.58 crore on January 4, as per provisional data available on the NSE.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18200-18350; Supports 18050-17985

Banknifty Futures – Resistances 43350-43600; Supports 43000-42600

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