Daily Market Update- Equity 6 Feb 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 6 Feb 2023

Benchmark Nifty index settled sharply higher at 17854 levels, adding 243 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.38 to 1.5%
  • Barring DAX that ended flat, FTSE & CAC were up nearly 1% each
  • Asian equity markets are trading mix
  • SGX Nifty is little changed


News highlights from across the globe

  • Asian markets opened the week with a mixed message from equity futures with the headwinds from an unexpectedly strong U.S. jobs report and the downing of an alleged Chinese spy balloon that’s aggravated geopolitical tensions.
  • The U.S. stocks halted a three-day advance on Friday in a volatile session that saw equities swerve between modest gains and losses as investors contended with data pointing to a robust labor market.
  • The Nasdaq 100 also scored a weekly advance, despite heavy selling after Apple Inc., Alphabet Inc. and Amazon. com Inc. reported disappointing results Thursday.


Important news updates from the domestic front

  • Adani Enterprises, Adani Ports and SEZ and Ambuja Cements: The three stocks will be under the NSE’s short-term additional surveillance measure or ASM starting Feb. 6. From Monday, the applicable margin on the three stocks will be 50% or existing margin, whichever is higher, subject to maximum rate of margin capped at 100%, the NSE circular had said.
  • Vodafone Idea: The government will convert the company’s AGR dues into equity. Vodafone Idea has been directed to issue 16.13 million equity shares of face value Rs 10 each at an issue price of Rs 10 each.
  • Adani Power: The company confirmed that its subsidiary, Adani Power (Jharkhand), has received a communication from Bangladesh Power Development Board to consider a discount on the energy charge, but it is not considering any amendment to the power purchase agreement.
  • Bajaj Finserv: Bajaj Allianz Life Insurance Co., a material subsidiary of the company, analysing the potential impact of the Budget recommendation to tax proceeds from non-linked policies with annual premium over Rs 5 lakh.
  • Samvardhana Motherson International: The board is scheduled to meet on Feb. 8 to consider raising funds via issuance of bonds, debentures, non-convertible debt securities or through any other permissible mode.
  • Engineers India: The company has received an EPCM services contract for setting up gas based greenfield 4,000 TPD urea and 2300 TPD ammonia complex. It has also received orders from ADNOC Offshore, Abu Dhabi, UAE for minor engineering works for offshore facilities and a feasibility study for crude storage tanks at terminal facilities.
  • Bank of Baroda: RBI fined the bank Rs 30 lakh over violation of norms related to deposit interest rates and KYC.
Nifty Outlook
Benchmark Nifty index settled sharply higher at 17854 levels, adding 243 points to its previous closing values.

Nifty index outperformed the broader markets as Mid and Small cap index settled on flat to negative note..

Performance on the sectoral front was mix. PSU bank index was the top performer, rose over 3% followed by Financial Service index that was up 2.36%. On the other hand, Energy and Pharma index were at the bottom of the tally, down 1% each.

Going ahead, crossover and sustenance above 17925 spot levels will open the doors for further upmove till 18150 and higher levels in immediate near term.


Derivatives Overview & Outlook

On Friday, both Nifty futures & Banknifty futures shed around 6% & 8% of open interest respectively as short covering.

On the sectoral front, long buildup was seen among Cement and Telecom stocks whereas some short buildup was seen among Metal, Oil & Gas and Pharma stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 17600 PE and 18000 CE.

FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 11805 Cr in the cash segment, bought stocks futures worth Rs 1451 Cr and also bought index futures worth Rs 2271 Cr. DIIs were net buyers in the cash segment to the tune of Rs 14184 Cr during the week.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18000-18060; Supports 17780-17640

Banknifty Futures – Resistances 42000-42300; Supports 41000-40700


Results on February 3

Tata Steel, Adani Transmission, LIC Housing Finance, Muthoot Finance, Hitachi Energy India, Sansera Engineering, Suven Pharmaceuticals, Tejas Networks, Action Construction Equipment, Balaji Amines, Bls International Services, Easy Trip Planners, Fairchem Organics, Honda India Power Products, Huhtamaki India, Indo Count Industries, Infibeam Avenues, JK Paper, Kolte-Patil Developers, KPR Mill, Mold-Tek Packaging, Monte Carlo Fashions, Nuvoco Vistas Corporation, Shankara Building Products, Shree Global Tradefin, SJVN, Tasty Bite Eatables, TCPL Packaging, Unichem Laboratories, Uniroyal Marine Exports, Varun Beverages, Vinati Organics, V-Mart Retail, Wardwizard Innovations & Mobility


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.