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

The Benchmark Nifty index ended on a flat note at 19398 levels with marginal gains of 10 points to its previous closing values after a choppy trading session.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.18% to 0.38%
  • European equity markets were also down in range 0.64% to 1%
  • Majority of Asian equity markets are trading in red
  • GIFT Nifty is down by 40 points (as on 8:35 AM)


News highlights from across the globe

  • Asian markets are trading lower after Wall Street closed lower on hawkish signals from the Federal Reserve’s latest meeting minutes.
  • Brent crude was above $76 a barrel and the yield on the 10-year U.S. bond was trading at 3.93%


Important news updates from the domestic front

  • Adani Enterprises has fully repaid Rs 10 crore of commercial paper, which is unsecured, short-term debt. The flagship company of the Adani Group redeemed the commercial paper on July 5, which was the date of its maturity. There is no outstanding amount remaining, it said in an exchange filing.
  • Tata Power received a Rs 1,744 crore order to install and maintain 18.60 lakh meters in the Raipur area from Chhattisgarh State Power Distribution Company Ltd.
  • JSW Steel will replace HDFC in the S&P BSE Sensex from July 13 as the former will merge with the HDFC Bank.
  • JBM Auto Components will replace HDFC in the BSE 500 index.
  • DCB Bank: Reserve Bank of India has approved Tata Asset Management to acquire aggregate holding of up to 7.5% of the paid-up equity capital of the bank through the schemes of Tata Mutual Fund. The approval is valid for a period of one year from the date of the RBI letter. The central bank has also advised Tata Asset Management to ensure that the shareholding in the bank shall not exceed 7.5% of the pa
  • Bajaj Electricals: CRISIL Ratings has upgraded the long-term rating of the company’s bank loan facilities of Rs 2,100 crore, to CRISIL AA-/stable from CRISIL A+.
  • Asian Paint’s unit Asian White Cement Holding has been incorporated in the name of Asian White Inc. FZE in Fujairah Free Zone, UAE on June 26, 2023, for the purpose of carrying out the business of manufacturing, trading, and exporting white cement.
  • Tata Motors: ICRA has upgraded its long-term credit rating to ICRA AA/ Stable from ICRA AA-/Positive.


Nifty Overview & Outlook

The Benchmark Nifty index ended on a flat note at 19398 levels with marginal gains of 10 points to its previous closing values after a choppy trading session.

Broader market outperformed the benchmark as Midcap & Small-cap index settled higher up by 0.74% each; resultant, market breadth was skewed in favor of bulls as over 1.5 advances were recorded for every declining share at NSE.

Majority of sectoral indices tracked at NSE settled higher. Amongst them, Nifty FMCG index was at the top of the tally, gained nearly 2% followed by Auto & Media index that were up by nearly 1.50% each. On the other hand, Financial Services and Nifty Bank indices witnessed some selling pressure, down 0.82% & 0.33% respectively.

Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to follow buy on dips trading approach till it is holding above 18850 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen among Nifty & Banknifty futures on price as well as on open interest front whereas Finnifty futures shed around 12% of open interest as long unwinding.

Majority of F&O sectors settled higher. Amongst them, Auto, FMCG, Capital Goods and Realty stocks witnessed maximum addition of long positions.

On options front, put writing was seem at multiple strikes along with call writing at multiple strikes and maximum positions are at 19300 PE and 19500 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1603 Cr in the cash segment, bought stocks futures worth Rs 87 Cr and also bought index futures worth Rs 463 Cr. DIIs were net sellers in the cash segment to the tune of Rs 439 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19500-19565; Supports 19415-19335

Banknifty – Resistances 45480-45700; Supports 45090-44900

Finnifty – Resistances 20370-20450; Supports 20220-20130


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