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

The benchmark Nifty index continued its sideways move for yet another session and closed on a positive note after adding 46 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended higher in range 1.07 to 2.12%
  • European equity markets also gained by 1.23 to 1.83%
  • Asian equity markets are also trading in green
  • SGX Nifty is up by 100 points (as on 8:25AM)


News highlights from across the globe

  • Asian markets are trading higher on Monday after the S&P 500 rose to the cusp of a bull market amid strengthening bets for a Federal Reserve rate pause this month.
  • Oil rallied on a supply cut from Saudi Arabia. Crude jumped more 3% on the pledge to make an extra 1 million barrel-a-day reduction in July, which trims Saudi Arabia’s production to the lowest level for several years.
  • A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring. As stocks rose on Friday, Wall Street’s “fear gauge” plummeted to pre-pandemic levels. The Cboe Volatility Index, or VIX, dropped below 15 from an average of 23 in the past year.


Important news updates from the domestic front

  • SBI Life Insurance: Insurance regulator IRDAI approved the transfer of the life insurance business of Sahara India Life Insurance Co. to SBI Life, with immediate effect.
  • Indian Overseas Bank: The Reserve Bank of India imposed a monetary penalty of Rs 2.20 crore on the bank over regulatory non-compliance.
  • Tech Mahindra’s subsidiary Comviva Technologies and step-down subsidiary Comviva Technologies B.V. have agreed to sell 0.04% and 99.96% shareholding, respectively in Comviva Technologies do Brasil Indústria, Comércio, Importação e Exportação to Druid Internet Systems Comércio E Serviços for an upfront payment of $20,000 and deferred payment of $1.42 million.
  • Tata Chemicals signed an MoU with the Government of Gujarat to set up a 20 GW capacity lithium-ion cell manufacturing giga factory with an investment of Rs 13,000 crore, the state government said in a statement. The company will reorganize its U.S. operations to rationalize the number of intermediate entities.
  • Zydus Lifesciences: The U.S. FDA inspection of the company’s animal health drug manufacturing facility at SEZ, Ahmedabad was closed with nil observations.
  • Godrej Properties bought the remaining 26% stake in Godrej Home Constructions for Rs 14.99 crore, taking its total shareholding to 100%.
  • Minda Corporation will raise Rs 600 crore through further issuance of securities through public and/or private offerings including preferential issues, qualified institutions placement, further public offers, or any of the permissible modes.
  • Lemon Tree Hotels started two hotels in Agra and Bhopal, that will be managed by its subsidiary Carnation Hotels.


Nifty Overview & Outlook

The benchmark Nifty index continued its sideways move for yet another session and closed on a positive note after adding 46 points to its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were up 0.73 & 0.5% respectively. The market breadth was skewed in the favor of bulls as nearly 2 advances were recorded for every declining share at NSE.

All the sectoral indices, barring Nifty Oil & Gas and IT index, tracked at NSE settled in green. Amongst them, Nifty Realty and Metal led the rally, rose over 1% followed by PSU Bank, Auto and Media indices that were up nearly 1% each.

Going ahead, we reiterate our bullish view on the Nifty index and suggest traders to maintain buy on dips trading strategy till it is holding above 18200 levels on a closing basis.


Derivatives Overview & Outlook

On Friday, Nifty, Banknifty and Finnifty futures added around 3%, 2% and 16% of open interest respectively as long buildup.

Majority of F&O sectors settled higher. Amongst them, Realty, Textile, Chemicals and Pharma stocks witnessed maximum addition of long positions whereas some short buildup was seen among Oil & Gas stocks.

On options front, put writing was seen at multiple strikes along with call writing at 18600 strikes and maximum positions are at 18500 PE and 18600 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 10561 Cr in the cash segment, bought stocks futures worth Rs 1457 Cr and sold index futures worth Rs 3655 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1043 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18740-18800; Supports 18550-18480

Banknifty – Resistances 44300-44550; Supports 43850-43600

Finnifty – Resistances 19550-19625; Supports 19390-19300


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