Daily Market Update- Equity 8 Feb 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 8 Feb 2023

Nifty index ended lower after a volatile trading session, closed shop at 17721, down 43 points.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.78 to 1.9%
  • European equity markets ended mix, FTSE gained 0.36% while DAX and CAC settled on flat note
  • Majority of Asian equity markets are trading in green.
  • SGX Nifty is up 69 point (8:12 AM)


News highlights from across the globe

  • Asian markets primed for a mixed open on Wednesday following a late rally in the U.S. shares in a volatile session after Federal Reserve Chair Jerome Powell rebuffed an opportunity to tamp down investor optimism.
  • The Fed chief Jorme Powell highlighted that disinflation has begun, and that further hikes will likely be needed if the jobs market remains strong.
  • The monetary policy committee (MPC) of the RBI will announce its decision on interest rate today.


Important news updates from the domestic front

  • Vodafone Idea: The company allocated 16.13 crore shares, or 33.44% stake, to the government in lieu of conversion of interest dues from deferment of adjusted gross revenue and spectrum auction payments.
  • ONGC: The company interacted with global oil majors, including ExxonMobil, Equinor, Baker Hughes, and France-based Institut Français du Pétrole, to collaborate in its exploration ventures in deep waters of India at the India Energy Week.
  • Canara Bank: The bank appointed K Satyanarayana Raju as MD & CEO, with effect from Feb. 7, 2023, till his superannuation on Dec. 31, 2025. The board also appointed Hardeep Singh Ahluwalia as executive director, for three years.
  • BSE: The stock exchange will divest 2.5% stake in Central Depositary Services Ltd. to meet regulatory shareholding norms.
  • Rail Vikas Nigam: The company emerged as the lowest bidder for provision of automatic block signalling on Madar-Sakhun section of Jaipur division over North-Western Railway. The project cost is Rs 69.48 crore.
Nifty Outlook
Nifty index ended lower after a volatile trading session, closed shop at 17721, down 43 points.

Broader markets settled on flat to negative note, Mid cap index was flat while Small cap index lost 0.71%, leading to extremely weak market breadth.

Nifty Realty performed well today by ending almost with 1% gains. On the other hand, Nifty FMCG and AUTO index leads the decline, ended lower by more than 1% each.

Nifty index is trading in a narrow range i.e. 17600 – 17900 range for past couple of sessions. Going ahead, 17925 is the next immediate resistance on the higher side, once that is taken out we can expect a sharp move up to 18100 and higher levels in short term.


Derivatives Overview & Outlook

Yesterday, both Nifty and Banknifty futures remained almost unchanged on the price front whereas on open interest front Nifty futures added around 2% of open interest and Banknifty futures shed around 3% of open interest.

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

On options front, call writing was seen at multiple strikes and maximum positions are at 18000 CE and 17000 PE closely followed by 17500 PE.


FII & DII Trading Activity

Yesterday, FIIs further sold stocks worth Rs 2560 Cr in the cash segment, sold stocks futures worth Rs 240 Cr and bought index futures worth Rs 89 Cr. DIIs were net buyers in the cash segment to the tune of Rs 840 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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