Daily Market Update- Equity 7 Aug 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 7 Aug 2023

The benchmark Nifty index opened with gap on higher side and settled higher above 19500 levels after adding 135 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended on negative note, down in range 0.36% to 0.53%
  • European equity markets ended on positive note
  • Asian markets are trading mix
  • GIFT Nifty is trading up by 37 points (as on 8:35AM)


News highlights from across the globe

  • Asian shares are set to decline after a mixed US jobs report and a reversal of gains on Wall Street that saw the S&P 500 lose a near 1% gain.
  • Brent crude was trading at $86.41 a barrel and the yield on the 10-year U.S. bond was trading at 4.03%


Important news updates from the domestic front

  • Adani Enterprises Adani Digital Labs has acquired 70.19% stake in Stark Enterprises, popularly known as Trainman, for Rs 6.8 crore. The company had previously acquired 29.81% stake in July.
  • NDTV received the government’s permission to uplink and downlink four news channels—NDTV Rajasthan, NDTV Madhya Pradesh/ Chhattisgarh, NDTV Gujarati and NDTV Marathi.
  • AIA Engineering will acquire 30% stake in Australia’s MPS for A$7.86 million via share purchase agreement and shareholders’ agreement. The acquisition will happen via UAE-based Vega Industries, the company’s wholly owned subsidiary. The unit has the option to acquire 40% stake in Vega MPS, a new company created by MPS promoters, over three years.
  • Brookfield India REIT will garner Rs 400 crore by issuing units to sponsor group entity Project Diamond Holdings on preferential basis and also plans to raise up to Rs 750 crore through issue of commercial papers to finance acquisition of two commercial assets in Gurugram and Mumbai.
  • Dr. Reddy’s Laboratories: The USFDA gave Establishment Inspection Report after inspecting its Hyderabad plant. The inspection result was classified as Voluntary Action Indicated.


Nifty Overview & Outlook

The benchmark Nifty index opened with gap on higher side and settled higher above 19500 levels after adding 135 points to its previous closing values.

Broader markets perform in line with the benchmark as Mid and Small cap index were up by 0.79% and 0.76% respectively. Market breadth was heavily inclined towards the advancing side as nearly 2 advances were recorded for every declining share at NSE.

Majority of sectoral indices tracked at NSE settled in green. Nifty IT and Pvt Bank were at the top of the tally, gained 1.55% and 1.25% respectively followed by Consumer Durable and Pharma index that rose 1% each. On the other hand, PSU Bank index were the worst performer down 0.70%.

Going ahead, we reiterate our sideways to negative view on Nifty index till it is trading below 19800 levels on closing basis.


Derivatives Overview & Outlook

On Friday, long build-up was seen in Nifty futures with rise in open interest by 3.6%. Short covering was seen in Banknifty futures and Finnifty futures with decrease in open interest by 2.1% and 13.9% respectively.

Majority of F&O sectors settled higher. Amongst them, Capital Goods, Finance and Media stocks witnessed maximum addition of long positions whereas some short buildup was seen in Oil & Gas and Textile shares.

On options front, put writing was seen at multiple strikes and maximum positions are at 19600 CE and 19400 PE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 2589 Cr in the cash segment, sold stocks futures and index futures worth Rs. 6195 Cr and Rs 3972 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 5618 Cr during the week.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19615-19680; Supports 19380-19335

Banknifty – Resistances 45160-45370; Supports 44450-44280

Finnifty – Resistances 20190-20240; Supports 19880-19810


F&O stocks in ban today: GNFC, HINDCOPPER, IBULHSGFIN, PEL




Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX 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 and Research Analyst. 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.

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. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

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.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.