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

The benchmark Nifty index ended on a flattish note at 18599 levels after adding just 5 points to its previous closing values after the lackluster trading session.

Overview and Outlook

Global Market Update

  • US equity markets ended on a flat to positive note
  • European equity markets also settled on a flat note
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:20AM)


News highlights from across the globe

  • Asian equity markets are trading with positive bias on Wednesday, with signs of stimulus in China. A rotation into financial shares on Tuesday suggested the breadth of the S&P 500’s recent rally might extend beyond technology soon.
  • The KBW Regional Bank index added more than 5% and the Russell 2000 climbed 2.7%. U.S.-listed Chinese companies rallied 3.8%, helped by news that U.S. Secretary of State Antony Blinken plans to visit China in the coming weeks.
  • The yield on 10-year Treasuries in the U.S. was trading at 3.66%. Crude was trading around $76-mark


Important news updates from the domestic front

  • Adani Group: BSE revised price bands for four Adani group companies: Adani Wilmar, Adani Green and Adani Transmission from 5% to 10%. It revised the price band of Adani Power from 5% to 20%.
  • Bank of Maharashtra: Lender approved the QIP issue at an issue price of Rs 28.5 apiece, which is at a discount of 4.94% to the floor price of Rs 29.98. An aggregate of Rs 1,000 crore will be allotted to eligible qualified institutional buyers.
  • Torrent Power signed a memorandum of understanding with the Government of Maharashtra to develop three pumped storage hydro projects of 5,700 MW capacity in Maharashtra with an investment of about Rs 27,000 crore. Torrent plans to execute these projects over five years.
  • Engineers India won an order worth Rs 5.05 crore from National Aluminium Company for providing consultancy services for updating project reports for Pottangi Bauxite Mines. It got an order worth Rs 15.50 crore from Jindal Steel and Power to supply basic engineering and detail engineering for the direct reduced iron plant in Odisha.
  • G R Infraproject’s unit GR Hasapur Badadal Highway executed a concession agreement to construct six lanes Surat-Nashik-Ahmednagar-Solapur- Maharashtra/Karnataka border greenfield stretch on hybrid annuity mode at a bid project cost of Rs 872.17 crore.
  • JSW Ispat Special Products: Chief Financial Officer Kiran Menon resigned from the post with effect from Jun. 5, 2023, to pursue opportunities outside the Group.
  • Rashtriya Chemicals and Fertilizers: Arbitral Tribunal passed an award of Rs 95 lakh as arbitration cost in favor of the company in a case with a contractor regarding recovery of damages and losses for a breakdown of two Gas Turbo generators. It asked the contractor to repair and reinstate both generators at their own cost. The tribunal directed the contractor to pay Rs 173.72 crore with 10% interest for additional
  • Valiant Organic’s unit Valiant Laboratories filed a draft red herring prospectus with SEBI regarding its proposed initial public offering by way of a fresh issue of up to 1.15 crore equity shares for listing on BSE and NSE


Nifty Overview & Outlook

The benchmark Nifty index ended on a flattish note at 18599 levels after adding just 5 points to its previous closing values after the lackluster trading session.

Small cap index outperformed the benchmark as it’s up 0.5% against the flat closing of the frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Auto and Realty were the top performers, rose over 1% each followed by Pharma that was up 0.61%. On the other hand, Nifty IT led the declines, down nearly 2%.

Nifty index is well placed on multiple chart frames till it is holding above 18200 levels on closing basis. Hence, we suggest traders maintain buy on dips trading strategy.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen among Nifty, Banknifty and Finnifty futures on the price front whereas on open interest front Nifty futures shed around 3% of open interest and Finnifty futures added around 15% of open interest.

On sectoral front, long buildup was seen among Realty and Cement stocks whereas some short buildup was seen among IT and Power stocks.

On options front, put writing was seen at 18550 strike along with call writing at 18750 strikes and maximum positions are at 18500 PE and 18600 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 386 Cr in the cash segment, bought stocks futures worth Rs 557 Cr and sold index futures worth Rs 920 Cr. DIIs were net sellers in the cash segment to the tune of Rs 489 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18730-18800; Supports 18600-18540

Banknifty – Resistances 44550-44750; Supports 44100-43800

Finnifty – Resistances 19600-19665; Supports 19450-19380


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