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

The Benchmark Nifty index extended gains for the seventh consecutive trading session and settled at new record high near 19500 levels after adding 98 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.79% to 1%
  • European equity markets were also down in range 2.22% to 3.23%
  • Asian equity markets are trading in lower
  • GIFT Nifty is little changed (as on 8:30AM)


News highlights from across the globe

  • Asian equity markets trading lower on Friday, after the Treasury yields spiked on surprisingly strong private hiring data.
  • ADP Research Institute numbers showed US companies added the most jobs in over a year in June, underscoring the inflationary threat from the strong labor market.
  • Brent crude was below $76 a barrel. The yield on the 10-year U.S. bond was trading at 4.03%


Important news updates from the domestic front

  • Indian Hotels signed 11 hotels in the first quarter and opened five new hotels across destinations.
  • Infosys’ North American-based unit Infosys Public Services opened a new subsidiary in Canada.
  • JK Cement has acquired an additional 20% stake for Rs 60.24 crores in Acro Paints, taking its overall holding to 80%.
  • Indian Oil, Praj Industries have signed a term sheet to strengthen biofuel production capacities in India. The joint venture will include the production of Sustainable Aviation Fuel, Ethanol, Compressed Bio-Gas, Biodiesel, and Bio-bitumen. The companies had, in October 2021, inked an agreement to form a JV for this.
  • Affle (India): The company’s unit in Singapore agreed to acquired the remaining 5% shares of Appnext  at a consideration of $1.5 million in tranches within three years.
  • Aster DM Healthcare has acquired an additional 2.36% stake in unit Malabar Institute of Medical Sciences from several minority shareholders thus increasing its holding from 76.01% to 78.37%.


Nifty Overview & Outlook

The Benchmark Nifty index extended gains for the seventh consecutive trading session and settled at new record high near 19500 levels after adding 98 points to its previous closing values.

The Broader market outperformed the benchmark as Mid and Small cap index gained nearly 1% each.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Nifty Realty was at the top of the tally gained, over 2% followed by Oil & Gas and Media index that rose 1.89% & 1.71% respectively.

Nifty index is well placed on multiple chart frame, however, possibility of some profit taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading strategy till index is holding above 19000 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, Nifty and Banknifty futures added around 6% & 7% of open interest respectively as long buildup
whereas Finnifty futures remained almost unchanged on price as well as on open interest front.
Majority of F&O sectors settled higher. Amongst them, Media, Realty, Oil & Gas and Auto stocks witnessed maximum addition of long positions.
On options front, Nifty will start the new weekly contracts with maximum positions at 19400 PE and 19500 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2641 Cr in the cash segment, bought stocks futures worth Rs 2958 Cr and also bought index futures worth Rs 780 Cr. On the other hand, DIIs were net sellers in the cash segment to the tune of Rs 2352 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 19550-19640; Supports 19380-19310

Banknifty – Resistances 45570-45700; Supports 45040-44800

Finnifty – Resistances 20380-20470; Supports 20120-20020


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