Daily Market Update- Equity 6 Jan 2023 | Globe Capital
06-Jan-2023
Daily Market Update- Equity 6 Jan 2023

Nifty index ended flat after a volatile trading session, closed shop tad below 18000 levels after a cut of 50 points from its previous closing value in an otherwise excessively weak trading session.

Overview and Outlook

Global Market Update

  • US equity markets ended settled over 1% lower
  • Barring FTSE, other European equity markets settled on flat to negative note
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:15 AM)

 

News highlights from across the globe

  • Stocks in Asia were mixed and US futures climbed ahead of additional crucial jobs data, on Friday morning. U.S. stocks were weighed down by strong labour market data on Thursday, which is considered a precursor to further rate hikes by the Fed.
  • Equities rose in Australia but fluctuated in Japan and South Korea. Futures for Hong Kong and Chinese benchmarks advanced, indicating an extension to the rally seen this week following positive news on China’s reopening.

Important news updates from the domestic front

  • IDBI Bank: SEBI allowed classification of government stake as public shareholding after divestment of the bank.
  • Tata Motors: The board of the company will convene on Jan. 25 to consider and approve the financial results for quarter ended December 2022.
  • Rail Vikas Nigam: The company received order worth Rs 166 crore from Gujarat Metro Rail Corporation for design, supply, installation, testing and commissioning of ballast-less track from Sarthana to Dream City under first phase of Surat Metro Rail Project.
  • Coal India: The company’s registered a growth of 10.3% in production on-year, while India’s total coal production increased by 10.81% to 82.87 million tonnes.
  • Ambuja Cement: The company incorporated Ambuja Resources for manufacturing cement and allied products, alternate fuel and power generation.
  • Larsen & Toubro: The company’s subsidiary L&T Realty Developers entered into an Agreement to sell its entire stake of 99% in Think Tower Developers for Rs 1 lakh.
  • Reliance Industries: English football club Manchester City has partnered with Jio Platforms, a subsidiary of the company, where the latter will be the club’s official mobile communications network partner in India.
  • Mahindra & Mahindra: The company’s subsidiary Mahindra and Mahindra South Africa (Proprietary) informed that step-down subsidiary Mahindra West Africa was dissolved as on Jan. 4, 2023 by the Corporate Affairs Commission, Nigeria.

Nifty Outlook

Nifty index ended flat after a volatile trading session, closed shop tad below 18000 levels after a cut of 50 points from its previous closing value in an otherwise excessively weak trading session.

Broader markets outperformed benchmark as Mid cap index was up 0.7% while Small cap index settled on flat to positive note, due to which market breadth was flat.

Majority of sector gauges tracked at NSE settled in green, Auto, FMCG, Pharma, Oil & Gas index gained maximum, up over 1% each while Financial Service index was at the bottom of the tally, down over 1%.

Nifty index bounced back after trading near the support zone of 17880 levels which is where 100 EMA is placed on daily chart. Going ahead, bulls will be back in action if the benchmark Nifty manages to surpass 18150 levels.

 

Derivatives Overview & Outlook

Nifty January futures ended at 18,070.05, a discount of 33 points. Nifty January futures fell 0.07% and 156 shares in Open Interest.

Nifty Bank January futures ended at 42,752.25, a discount of 383.90 points. Nifty Bank January futures rose 2% and 1,874 shares in Open Interest.

FII & DII Trading Activity

Overseas investors were net sellers of Indian equities for the tenth day in a row on Thursday. Foreign portfolio investors net sold Indian equities worth Rs 1,449.45 crore, while the domestic institutional investors broke their 21-day buying streak and sold 194.09 crore worth of Indian stocks on Thursday.

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18150-18250; Supports 17950-17900

Banknifty Futures – Resistances 43000-43300; Supports 42470-42250

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