Adani Group gets clean chit by US government on allegations of corporate fraud against Gautam Adani - Daily Market Update - Equity 6 Dec 2023 | Globe Capital Market LTD.
06-Dec-2023
Adani Group gets clean chit by US government on allegations of corporate fraud against Gautam Adani – Daily Market Update – Equity 6 Dec 2023

US government's clean chit to Adani Group, US government's investigation found Hindenburg's allegations false and DFC's due diligence found Hindenburg's allegations.

Overview and Outlook

Global Stock Market Today

  • Barring Nasdaq, other US equity markets ended on flat to negative note.
  • European equity markets ended on flat to positive note
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is trading up by 38 points, Nifty futures likely to open around 21035 levels (as on 8:30AM)

 

News highlights from across the globe

  • Asian markets are trading on a mixed note on Wednesday as traders assessed latest jobs data from the U.S., and as treasury yields declined.
  • Brent crude was trading at $77.20 a barrel and the yield on the 10-year U.S. bond was trading at 4.19%.

 

Important news updates from the domestic front

  • State Bank of India has proposed to acquire a 20% stake from SBI Capital Markets (SBICAPS) in SBI Pension Funds for Rs 229.52 crore. Post-acquisition, it will have an 80% stake in the SBI Pension Fund.
  • Ashok Leyland increased its stake in Switch Mobility’s holding company to 92.19% from 91.63%. It had deployed around Rs 662.5 crore as the first tranche of a planned Rs 1,200 crore investment.
  • Canara Bank: The bank looks to raise up to Rs 3,500 crore via tier-I bonds. The bidding starts on Dec. 7.
  • Bank of India opened its QIP issue at a floor price of Rs 105.42 per equity share.
  • Somany Ceramics: Sets Dec. 15 as the record date for the Rs 125 crore buyback, i.e., 15.18% stake at Rs 850 per share.
  • Power Grid Corporation emerged as a successful bidder to establish the Inter-State Transmission System Project in Khavda RE Park, Gujarat.
  • Force Motors November production stood at 2,216 units. It recorded a monthly sales volume of 1,732 units.

 

Nifty Overview & Outlook

The Benchmark Nifty index extended gains for the sixth consecutive trading sessions, settled at record highs i.e. 20855 levels after adding over 150 points to its previous closing values.

Nifty index outperformed the broader markets as it was up nearly 1% while Small Cap & Midcap index was up 0.11% and 0.35% respectively.

Majority of the sectoral indices settled higher. Amongst them, Nifty Metal index was at the top of the tally, gained over 3% followed by Nifty Bank, PSU Bank and Oil & Gas indices that were up over 1% each. On the other hand, Nifty IT and Media index led the declines, fell over 0.5% each.

Nifty index moved in line with our expectation and achieved 20800 levels as mentioned in our previous posts. Going ahead, sustenance above 20500 levels might take it higher towards 21000 levels in immediate near term.

 

Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Banknifty and Finnifty futures as open interest increased by 11%, 9% and 5% respectively.

On the sectoral front, long buildup was seen among Infrastructure, Textile, Chemical, Power and Oil & Gas stocks whereas some short buildup was seen among Media, Finance, Technology and Pharma shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 21000 CE and 20700 PE.

 

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 5224 Cr in the cash segment, bought stocks futures and index futures worth Rs. 921 Cr and Rs 1938 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 1399 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21170-20900; Supports 20600-20450

Banknifty – Resistances 47500-47800; Supports 46350-46100

Finnifty – Resistances 21350-21500; Supports 20550-20300

 

BANSCRIPT – DELTACORP, IBULHSGFIN, INDIACEM, ZEEL

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