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

The benchmark Nifty index opened with a gap on the higher side, kept the bullish momentum rolling throughout the session and settled at 18726 levels after adding 127 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended mix, Nasdaq was down 1.29% while Dow Jones ended on flat to positive note
  • European equity markets settled on a flat to negative note
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:30AM)


News highlights from across the globe

  • Asian markets are trading mix in the wake of a slide on Wall Street as traders boosted bets on a U.S. rate hike after a surprise increase by the Bank of Canada.
  • The yield on 10-year treasuries in the U.S. was trading at 3.80%. Crude was trading around $77-mark


Important news updates from the domestic front

  • India’s Monetary Policy Committee is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth. All 18 economists polled by Bloomberg expect the MPC to maintain the status quo on the RBI’s repo rate on Thursday. The benchmark policy repo rate is currently at 6.50%.
  • Bank Stocks to be in focus ahead of the Monetary Policy Committee decision on the policy repo rate. MPC is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth.
  • Lemon Tree Hotels signed a license agreement for a 60-room property in Rajahmundry in Andhra Pradesh. The hotel is expected to be operational by the third quarter of fiscal 2025. The company’s unit Carnation Hotels will be operating this hotel.
  • Life Insurance Corp increased its stake in Tech Mahindra by 2%,  from 6.87% to 8.89%. The holding increased at an average cost of Rs 1,050.77.
  • Stove Kraft: Chief Financial Officer Balaji A S has resigned from the company citing personal reasons. The company is in the process of hiring a professional for the position of chief financial officer.
  • Gati: Total volume, including surface and air express, rose 8% sequentially in May. It rose 1% from the year-ago period. The company said volumes in May continued to show an improving trend owing to an uptick in preparations for the upcoming festive season starting in the last week of May. This is expected to continue over the coming months.
  • Aether Industries signed a Letter of Intent with a U.S.-based oil field services company for a strategic supplier and contract manufacturing partnership. The letter specifies four strategic products that will be supplied to the global energy and oil and gas locations of the U.S.-based company, including a significant supply within India.
  • Titagarh Wagons: The board will meet on Jun. 10 to consider, evaluate and approve the proposal to raise funds by issuing equity of shares or other securities through the preferential issue, qualified institutional placement, rights issue, or through any other permissible mode.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side, kept the bullish momentum rolling throughout the session and settled at 18726 levels after adding 127 points to its previous closing values.

Small-cap index outperformed the benchmark as it was up over 1% while the midcap index performed in line with the benchmark. The market breadth was heavily inclined towards the advancing side as over 2 advances were recorded for every declining share at NSE.

All sectoral indices tracked at NSE settled in green. Amongst them, Metal and Realty index were at the top of the tally, rose over 1.5% each followed by FMCG and Oil & Gas index that gained over 1% each.

Technically, Nifty ended on a strong note and closed above its congestion zone i.e. 18450-18660 spot levels. Going ahead, we reiterate our bullish view on Nifty index and expect it to test 18800 and higher levels in the immediate near term.


Derivatives Overview & Outlook

On Friday, Nifty futures added around 8% of open interest as long buildup whereas Banknifty and Finnifty futures remained almost unchanged on the price as well as on open interest front.

All F&O sectors settled higher. Amongst them, Telecom, FMCG, Media and Pharma stocks witnessed maximum addition of long positions whereas some short covering was seen among Power and IT stocks.

On options front, put writing was seen at multiple strikes along with call addition at 18850 strikes and maximum positions are at 18600 PE and 18900 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1383 Cr in the cash segment, bought stocks futures worth Rs 1893 Cr and also bought index futures worth Rs 806 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 392 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18880-18950; Supports 18740-18680

Banknifty – Resistances 44500-44750; Supports 44180-43900

Finnifty – Resistances 19630-19700; Supports 19500-19400


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