Oil steadies after best winning run since 2019 on OPEC+ cuts : Daily Market Update- Equity 7 Sep 2023 | Globe Capital Market LTD.
Oil steadies after best winning run since 2019 on OPEC+ cuts : Daily Market Update- Equity 7 Sep 2023

Oil steadied after the longest winning run in more than four years as OPEC+ leaders extended supply cuts to the end of 2023 and industry estimates pointed to another draw in US crude inventories. WTI edged higher toward $88 a barrel after posting nine straight daily gains, the longest stretch of advances since January 2019. That surge came as Saudi Arabia and Russia pledged to prolong their export curbs through the fourth quarter. Riyadh also raised official prices.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, down in range 0.57% to 1.06%
  • European equity markets ended on negative note.
  • Asian equity markets are trading on a negative note
  • GIFT Nifty is up by 9 points (as on 8:30AM), Nifty futures likely to open around 19634 levels.


News highlights from across the globe

  • Asian equity futures drifted lower as U.S. stocks fell following economic data that exceeded forecasts, bolstering the case for the Federal Reserve to keep interest rates elevated for longer.
  • The S&P 500 fell 0.7% to close lower for a second day. The tech-heavy Nasdaq 100, which is more sensitive to interest rate expectations, declined 0.9%.
  • Brent crude was trading above $90 a barrel and the yield on the 10-year U.S. bond was trading at 4.28%.


Important news updates from the domestic front

  • Tata Consultancy Services has entered into a strategic partnership with the digital unit of Jaguar Land Rover Plc as part of the carmaker’s “reimagine” strategy. The new partnership is valued at £800 million over five years.
  • Jio Financial Services will be excluded from the NSE Nifty 50 and other Nifty indices on Thursday.
  • Reliance Industries: The conglomerate’s unit Reliance Retail Ventures has entered into a joint venture with Alia Bhatt’s kids and maternity-wear brand, Ed-a-Mamma, for a 51% stake. The valuation was not disclosed. Further, the retail arm received the subscription amount of Rs 8,278 crore from Qatar Holding and allotted 6.86 crore shares to QIA.
  • Adani Total Gas received a work order to design, build, finance, and operate a 500 tonne per day bio-CNG plant in Ahmedabad on a public-private partnership model.
  • Lupin will collaborate with Mark Cuban Cost Plus Drug Co and COPD Foundation to bolster access to healthcare by expanding the availability of Tiotropium Bromide Inhalation Powder, 18 mcg/capsule, to chronic obstructive pulmonary disease patients in the U.S.
  • Tata Consumer Products clarified it is not in negotiations with Haldiram’s to acquire a 51% stake in the company, responding to media reports.
  • Biocon subsidiary Biocon Biologics has completed the integration of the acquired biosimilars business from Viatris in North America (United States and Canada). The agreement had closed in November 2022. It is expected to grow its employee count to over 150 in North America by the end of the year.
  • REC: In its AGM, the state-run company has announced commitment to increase loan portfolio of green projects by more than 10 times by year 2030 to Rs 3 lakh crore. Further, it has signed a loan deal for $100 million with EXIM Bank to refinance its borrowers in power, infrastructure and logistics sectors for importing capital equipment. It has raised $1.15 billion through Syndicated Term Loans in August 2023 to fund power, infrastructure and logistics sector projects.


Nifty Overview & Outlook

The benchmark Nifty index ended on a positive note above  19600 levels, added 36 points  to its previous closing values after a volatile trading session.

The broader market performed inline with the benchmark as Small cap & Midcap index were up 0.28% and 0.15% respectively leading to flat market breadth.

Performance on the sectoral front was mix. Amongst them, FMCG index were at the top of the tally, rose over 1% followed by Healthcare and Pharma index that were up 0.92% and 0.91% respectively.  On the other hand, Nifty Metal, PSU Bank  and Realty led the decline down nearly 1% each.

Technically, Nifty index settled on a very strong note. Going ahead, we reiterate our short term bullish view on Nifty index till it is trading above19300 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty and Finnifty futures with increase in open interest by 1% and 2.9% respectively whereas short buildup was seen in Banknifty futures with an increase in open interest by 6.6%.

On sectoral front, long buildup was seen among Chemical, FMCG, Oil & Gas, Pharma and Telecom stocks. Short buildup was seen in Banking, Finance and Power stocks whereas short covering was seen in Capital goods, Media and Textile stocks.

On options front, put writing and call writing both was seen at multiple strikes and maximum positions are at 19500 PE and 19700 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3246 Cr in the cash segment, sold stocks futures and index future worth Rs 2319 Cr and Rs 33 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 247 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19710-19760; Supports 19560-19505

Banknifty – Resistances 44840-45080; Supports 44440-44240

Finnifty – Resistances 19980-20040; Supports 19780-19674


F&O stocks in ban today:




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