Oil tests November high after OPEC+ leaders extend supply cuts - Daily Market Update- Equity 6 Sep 2023 | Globe Capital Market LTD.
Oil tests November high after OPEC+ leaders extend supply cuts – Daily Market Update- Equity 6 Sep 2023

Oil held near the highest since November after OPEC+ leaders Saudi Arabia and Russia announced that they would extend supply curbs through the end of the year, tightening the global market.

Overview and Outlook

Global Market Update

  • US equity markets ended on negative note, down in range 0.08% to 0.56%
  • European equity markets ended on negative note.
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is down by 12 points (as on 8:30AM), Nifty futures likely to open around 19653 levels.


News highlights from across the globe

  • Asian equity futures pointed to a cautious open for stock markets around the region on Wednesday after U.S. shares fell and a rally in oil increased concern about inflation.
  • Investors in Asia will be watching for gross domestic product data from Australia Wednesday, consumer price index figures in Taiwan and a speech from Bank of Japan board member Hajime Takata.
  • Brent crude was trading above $90 a barrel and the yield on the 10-year U.S. bond was trading at 4.26%


Important news updates from the domestic front

  • Jio Financial Services will be excluded from the NSE Nifty 50 and other Nifty indices as of Sept. 7. Even if it hits the price band on Wednesday, the exclusion will not be deferred further.
  • Vedanta: The Zambian government has agreed to return ownership of Konkola Copper Mines to Vedanta Resources. Konkola Copper Mines assets have reserves of 16 million tonnes of copper.
  • GAIL India: The Central Bureau of Investigation has arrested KB Singh, Executive Director (ER & Projects) and a chief general manager of the company along with three others in an alleged bribery case of Rs 50 lakh in which favours were granted to a Vadodara-based company in the contract for two pipeline projects, PTI reported.
  • Union Bank of India, Bank of Baroda: The Indian Renewable Energy Development Agency (IREDA) has signed MoUs with the two lenders to co-finance renewable energy projects, including both established and emerging RE technologies.
  • NBCC (India) company has signed an MoU with Kerala State Housing Board, for development of 17.9 acres land parcel of the board in Kochi. The project value is Rs 2,000 crore.
  • Shriram Finance approved and allotted senior, secured, rated, listed, redeemable, taxable nonconvertible debentures (NCD) on private placement basis for an issue size of Rs 75 crore plus greenshoe option of Rs 150 crore.


Nifty Overview & Outlook

The Benchmark Nifty index extended gains for the third consecutive session, settled at 19574 levels after adding added 46 points to its previous closing values.

Broader market outperformed the benchmark as Small-cap & Mid-cap index was up nearly 1% each.

Majority of the sectoral indices tracked at NSE settled in green. Amongst them, Nifty Media led the advances up over 3% followed by Nifty Healthcare, Pharma and Realty index that settled over 1% higher. On the other hand, Nifty Bank and Financial Services witnessed some selling pressure, ended on a flat to negative note.

Technically, Nifty index is well placed on multiple chart frames till it is trading above 19300 levels on a closing basis. Going ahead, we reiterate our bullish view on the Nifty index and suggest traders to maintain buy on dips trading approach.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty futures on open interest front, short buildup was seen in Finnifty futures with an increase in open interest by 15.2%. On the other hand, long unwinding was seen in Banknifty futures with decrease in open interest by 3.3%.

On sectoral front, long buildup was seen in Chemical, Infrastructure, Media, Pharma, Reality and Textile stocks. Short buildup was seen in Finance, Power and Telecom stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19500 PE and 19600 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1725 Cr in the cash segment, bought stocks futures worth Rs 269 Cr and sold index futures worth Rs 1867 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1078 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19740-19805; Supports 19580-19500

Banknifty – Resistances 45060-45250; Supports 44515-44330

Finnifty – Resistances 19990-20070; Supports 19800-19715


F&O stocks in ban today:




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