Daily Market Update- Equity 5 July 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 5 July 2023

The Benchmark Nifty index ended on a strong note and settled at new record highs i.e. 19389 levels after adding 66 points to its previous closing values after highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets were closed yesterday
  • European equity markets ended on a flat to negative note
  • Majority of Asian equity markets are trading in red
  • GIFT Nifty is little changed (as on 8:30 AM)


News highlights from across the globe

  • Asian markets are trading lower on Wednesday in subdued trading following a holiday for U.S. markets. Major currencies were little changed. Futures for Hong Kong, Japan, and Australia all declined, while contracts for the S&P 500 and Nasdaq 100 edged lower.
  • Brent crude was trading above $71 a barrel and the yield on the 10-year U.S. bond was trading at 3.84%


Important news updates from the domestic front

  • LTIM will replace HDFC in the Nifty 50.
  • State Bank of India: The lender has approved the acquisition of the entire stake held by unit SBI Capital Markets in SBICAP Ventures for a cash consideration of Rs 708.07 crore.
  • Bandhan Bank: Bandhan Bank Chief Financial Officer Sunil Samdani has resigned, with effect from Sept. 30, and decided to explore professional opportunities outside the bank. The bank is in the process of identifying a suitable candidate for the office of CFO.
  • Syngene International, Strides Pharma: Stelis Biopharma, the biologics arm of Strides, has signed a binding term sheet with Syngene International Ltd. to divest its Unit 3 multi-modal facility in Bengaluru for a gross consideration of Rs 702 crore. Syngene will further invest up to Rs 100 crore to repurpose and revalidate the facility. The site will have a manufacturing capacity of 20,000 liters of installed biologic drug substances
  • Bharat Heavy Electricals has extended its gas turbine technology agreement with General Electric Technology GmbH, Switzerland. Under this extension, BHEL has gained access and enhanced rights for existing, upgraded, and new gas turbine models.
  • Aurobindo Pharma: The company’s breast cancer biosimilar product, BP02 Trastuzumab, developed by unit Curateq Biologics, has met its primary endpoint in Phase III clinical trials and has shown equivalent efficacy to the Herceptin biosimilar.
  • Bata India has approved the appointment of Anil Ramesh Somani as chief financial officer for a period of five years, starting April 25, 2023.
  • Jindal Steel & Power will replace HDFC in the Nifty 100.


Nifty Overview & Outlook

The Benchmark Nifty index ended on a strong note and settled at new record highs i.e. 19389 levels after adding 66 points to its previous closing values after highly volatile trading session.

Midcap index underperformed the benchmark as its down 0.23% while small-cap index ended on a flat to positive note against the 0.34% gains of the frontline index.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, PSU Bank and IT indices were the top performer, up 1.89% and 1% respectively followed by Media and Financial services that were up nearly 1% each. On the other hand, Oil & Gas and Auto indices were the worst performer down 0.68% and 0.48% respectively.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to follow buy on dips trading approach till it is holding above 18850 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures added around 1%, 4% & 20% of open interest respectively as long buildup.

On the sectoral front, short buildup was seen among Chemicals, Auto and Realty stocks whereas some long buildup was seen among Banking stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19300 PE and 19400 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2134 Cr in the cash segment, sold stocks futures worth Rs 1255 Cr and bought index futures worth Rs 1173 Cr. DIIs were net sellers in the cash segment to the tune of Rs 785 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19500-19600; Supports 19360-19280

Banknifty – Resistances 45600-45750; Supports 45100-44900

Finnifty – Resistances 20500-20560; Supports 20300-20200


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