Asian stocks fell as China's property back in focus : Daily Market Update- Equity 5 Sep 2023 | Globe Capital Market LTD.
Asian stocks fell as China’s property back in focus : Daily Market Update- Equity 5 Sep 2023

Asian stocks are under pressure as traders returned their focus to China’s efforts to halt its economic malaise after markets in the US were shut for the US Labor Day holiday. Hong Kong shares fell after Monday’s rally that saw the Hang Seng Index jump almost 3% on the government’s latest property support. Mainland China shares also slipped. Developer Country Garden Holdings Co. is in spotlight after the company is reported to plan payment extensions of seven yuan bonds. It is also entering the final hours of a grace period to pay interest on dollar bonds.

Overview and Outlook

Global Market Update

  • Yesterday US market were shut for the US Labour day holiday.
  • European equity markets ended on negative note.
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is down by 9 points (as on 8:30AM), Nifty futures likely to open around 19591 levels.


News highlights from across the globe

  • Asian stocks are trading lower on Tuesday as traders return their focus to China’s efforts to halt its economic malaise after markets in the U.S. were shut for the U.S. Labor Day holiday.
  • Futures in Japan and Australia point to shares easing on Tuesday, while Hong Kong’s Hang Seng index — which jumped almost 3% Monday before paring gains — is also set to fall. That comes after European shares failed to provide a strong lead for investors, with the Stoxx 600 gauge closing little-changed in low-volume trading after rising as much as 0.8% earlier.
  • Brent crude was trading above $89 a barrel and the yield on the 10-year U.S. bond was trading at 4.18%


Important news updates from the domestic front

  • Hero MotoCorp will invest Rs 550 crore in Ather Energy Private’s rights issue. The Splendor-maker, which currently holds 33.1% stake in Ather, will see its shareholding rise in the company. The transaction is expected to be completed before the end of September.
  • Cipla South African subsidiary entered into a binding term sheet to acquire 100% stake in Actor Holdings (Pty), a privately owned pharmaceutical company specializing in consumer health and generic medicine. The consideration has been fixed at ZAR 900 million (approx. $48.6 million or around Rs 400 crore) in cash for 920 equity shares representing 100% equity stake.
  • Mahindra and Mahindra: Volkswagen is in an advanced discussions with the automaker on the use of central MEB components such as e-drive and unified cell.
  • Yes Bank has clarified and denied any role in settlement or negotiation after the sale of loan portfolio to JC Flowers ARC. The association of the bank with JC Flowers ARC stays limited to the extent of its current shareholding, at 9.9%.
  • Tata Power unit Tata Power Renewable Energy signed a 26 MW solar power delivery agreement with Neosym Industry, to be set at Jamkhed, Maharashtra, and generate 59 MU power per annum.
  • BHEL bagged order for Electro-Mechanical (E&M) works of the country’s largest capacity hydropower project of 2,880 MW Dibang Multipurpose Project in Arunachal Pradesh.
  • Rail Vikas Nigam The RVNL-MPCC JV emerged as the lowest bidder for all civil engineering works of Varodara Division of Western Railway. The project cost is Rs 174.27 crore and the contract is to be executed in two years. The company’s share in the JV stands at 74%, while MPCC share is 26%.


Nifty Overview & Outlook

The Benchmark Nifty index extended gains for the second consecutive session and closed above 19,500 levels after adding 94 points to its previous closing values.

Broader market outperformed the benchmark as Small cap & Midcap index was up by 1.33% and 0.59% respectively.

All the sectoral indices, barring Consumer Durable and FMCG index, tracked at NSE settled in green. Amongst them, IT, Metal and PSU Bank index were the top performers, rallied over 2% followed by Nifty Media and Realty index that settled over 1% higher.

Technically, Nifty managed to close above 19500 levels which was a psychological resistance level as mentioned in our previous report. Going ahead, this rally may continue towards 19600/19650 levels in the immediate near term. Traders are advised to follow buy on dips trading strategy until Nifty holding 19300 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty futures on open interest front, long buildup was seen in Finnifty futures with an increase in open interest by 17%. On the other hand, short covering was seen in Banknifty futures with decrease in open interest by 4.5%.

Majority of F&O sectors settled higher on long buildup. Amongst them Power, Metals, Cements, Technology and Capital Goods stock witnessed maximum addition of long positions whereas some short buildup was seen among Textile and Telecom stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19400 PE and 19700 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3368 Cr in the cash segment, bought stocks futures and index future worth Rs 738 Cr and Rs. 150 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 2563 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19570-19630; Supports 19450-19400

Banknifty – Resistances 44930-45130; Supports 44500-44330

Finnifty – Resistances 19950-20040; Supports 19780-19690


F&O stocks in ban today:




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