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

The benchmark Nifty index opened with a gap on the higher side, remained sideways throughout the session and closed at 18594 levels after adding 59 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended on a flat to negative note
  • European equity markets also ended lower in range 0.10 to 0.97%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is little changed (as on 8:25AM)


News highlights from across the globe

  • The S&P 500 dropped to session lows as Apple Inc. erased earlier gains in anticipation of a new mixed-reality headset. Both Tech and Energy stocks pared earlier advances that had briefly pushed the S&P 500 20% above an October low, the marker of a bull market.
  • Energy stocks, including oil majors Chevron Corp. and Exxon Mobil Corp., pared gains owing to an oil supply cut from Saudi Arabia. Elsewhere. equities fell in Europe.
  • The yield on 10-year treasuries in the U.S. was trading at 3.68%. Crude was trading above $76-mark


Important news updates from the domestic front

  • Adani Group made a prepayment of margin-linked share-backed financing totaling $2.15. Promoters also prepaid $700 million debt taken for the Ambuja Cement acquisition. Cash balance of the listed portfolio was up 41.5% YoY to $4.75 billion (Rs 40,351 crore) in FY23.
  • Mahindra & Mahindra: Sunrise Initiatives sells an entire stake of 81.58% in Mahindra Marine to Ocean Blue Boating. Ocean Blue currently holds the balance 18.42% stake in Mahindra Marine.
  • SBI Cards and Payment Services board approves the raising of funds worth Rs. 3,000 crores through Non-Convertible Debentures (NCDs) in one or more tranches on a private placement basis.
  • Bharti Airtel: Special committee of directors for fundraising approves allotment of 21.01 lakh equity shares of face value Rs 5 each at a conversion price of Rs 521 to holders of foreign currency convertible bonds.
  • Allcargo Logistics says Transindia Real Estate has agreed to further divest 10% stake each in five subsidiaries of Allcargo and a 100% stake in Allcargo Multimodal to Blackstone.
  • NELCO inks pact to acquire a 9.09% stake in Piscis Networks with an initial investment of Rs 99.99 lakhs. It plans to increase its stake in the company to up to at least 30%.
  • Coal India: Government of India now owns a 63.13% stake after an offer-for-sale.
  • JK Cement agrees to sign, and execute a share purchase agreement to buy 100% stake in Toshali Cements for Rs 157 crore in cash. The acquisition will help the Company expand its footprint into the Eastern Region.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, remained sideways throughout the session and closed at 18594 levels after adding 59 points to its previous closing values.

Broader markets performed in line with the benchmark as Mid and Small-cap index ended on a flat to a positive note; resultant, market breadth was flat at NSE.

Performance on the sectoral front was mix. Nifty Auto was the top performer, rose over 1% followed by Media and Pvt Bank which was up 0.88 & 0.68% respectively. On the other hand, Nifty FMCG and PSU Bank index witnessed some selling pressure, down nearly 0.5% each.

Going ahead, we reiterate our bullish view on the Nifty index and suggest traders maintain buy on dips trading strategy till it is holding above 18200 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty futures on price as well as on open interest front, Banknifty futures added around 4% of open interest as long buildup and Finnifty futures shed around 18% of open interest as short covering.

Majority of F&O sectors settled higher. Amongst them, Media and Cement stocks witnessed maximum addition of long positions whereas some short buildup was seen among IT stocks.

On options front, put writing was seen at multiple strikes along with call writing at 18700 strikes and maximum positions are at 18500 PE and 18600 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 701 Cr in the cash segment, bought stocks futures worth Rs 1388 Cr and bought index futures worth Rs 746 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1196 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18740-18800; Supports 18600-18540

Banknifty – Resistances 44550-44750; Supports 44000-437500

Finnifty – Resistances 19600-19665; Supports 19440-19360


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