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

Nifty opened down 30 point and traded in a narrow range throughout the day. Benchmark Nifty index settled lower at 17764 levels, down 89 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended in red, down 0.10 to 1%
  • European markets were down nearly 1% each
  • Asian equity markets are trading in green.
  • SGX Nifty is up 95 point (8.34 AM)


News highlights from across the globe

  • Asian markets open cautiously after the U.S. stocks gave back some of this year’s gains amid bets that the Federal Reserve will keep a firm grip on monetary policy.
  •  The yield on 10-year Treasuries was at 3.63%. Crude price traded at the $80-mark.


Important news updates from the domestic front

  • Grasim Industries: The board appointed Ananyashree Birla and Aryaman Birla, children of group chairman Kumar Mangalam Birla, as non-executive directors, and Yazdi Piroj Dandiwala as an independent director.
  • UltraTech Cement: The company commissioned 1.5 mpta brownfield cement grinding unit at Jharsuguda, Odisha, taking its total cement capacity in the state to 4.1 mtpa.
  • Hindalco: Novelis, a subsidiary of the company, reported 95% decline year-on-year in consolidated profit attributable to common shareholders at $12 million. Net sales of the company decreased 3% on-year to $4.2 billion.
  • HCL Technologies: HCL America, a wholly owned step-down subsidiary of the company, proposed a cash tender offer for up to $125 million of its $500 million 1.375% senior notes that were issued with a maturity date of March 2026.
  • UPL: Life Insurance Corporation of India has reduced its shareholding in the company to 7.23% from 9.25%.
Nifty Outlook
Nifty opened 30 point lower and traded in a narrow range throughout the day and finally settled at 17764 levels, down 89 points from its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index rose 0.74 and 0.54% respectively.

On the sectoral front, Metal index was worst performer, fell 2.20% followed by Energy and IT that was down 0.71% & 0.61% respectively. On the other hand, Realty and FMCG index settled in green, up 0.52% and 0.56% respectively.

Technically, Nifty’s support is shifting upwards forming higher lows and higher highs formation. Going ahead, crossover and sustenance above 17925-mark, will open the doors for further up move till 18180 and higher levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, Nifty futures & Banknifty futures added around 3.5% & 8.5% of open interest respectively as short buildup.

On the sectoral front, long buildup was seen among Telecom, Pharma, Chemicals and Oil & Gas stocks whereas short buildup was seen among Metal stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 18000 CE and 17600 PE closely followed by 17000 PE.


FII & DII Trading Activity

Yesterday, FIIs further sold stocks worth Rs 1218 Cr in the cash segment, sold stocks futures worth Rs 65 Cr and also sold index futures worth Rs 2192 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1203 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17880-17930; Supports 17740-17640

Banknifty Futures – Resistances 41875-42250; Supports 41150-40760


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