Daily Market Update- Equity 9 Jan 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 9 Jan 2023

The domestic benchmark Nifty index settled off-highs at 17859 levels, down 132 points after a volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets were up by over 2% on Friday
  • European equity markets settled higher in range 0.8 to 1.47%
  • Asian equity markets are trading in green
  • SGX Nifty is up 121 points (as on 8:20 AM)


News highlights from across the globe

  • On Friday, the U.S. stocks had the best day in more than a month as slowing wage growth and an unexpected contraction in services activity, increased expectations of the Federal Reserve easing the pace of rate hikes in its fight against inflation.
  • Asian stocks rose in early trading after US equities had their best day in more than a month on Friday. Australian stocks gained 1% while US equity futures edged higher. Contracts for Hong Kong equities climbed 1.5% on Friday. Japanese markets are closed Monday for a public holiday.


Important news updates from the domestic front

  • Investors will also look at crude prices and foreign inflows during the week when Tata Consultancy Services Ltd. kicks off the earnings season, and inflation and industrial output numbers are expected.
  • Gland Pharma: The company through its wholly owned subsidiary has entered into a share purchase agreement with FPCI Sino French Midcap Fund, as the controlling seller to acquire 100% stake in Cenexi and the Cenexi holding entities.
  • HCL Tech: The company has been selected as the primary IT partner for The ODP Corporation, a business-to-business distribution company. HCL Tech will be the IT partner for ODP for end-to-end IT operations and enterprise-wide digital transformation to support ODP’s business strategy in its Office Depot, ODP Business Solutions and Veyer business units.
  • Krishna Institute of Medical Sciences: The company has made a further investment of acquiring 5.53% stake in Sarvejana Healthcare at Rs 340 apiece, taking its total stake to 56.61%.
  • Tata Steel: Provisional production volumes rose to 7.52MT in Q3 Vs 7.5MT in Q2. Deliveries dipped to 6.98MT in Q3 Vs 7.08MT in Q2.
  • Asian Paints: The board approved setting up a new water-based paint manufacturing facility with a capacity of 4 lakhs kilolitres per annum at an approximate investment of Rs 2,000 crore, to be commissioned within three years after acquisition of land.
  • Ashoka Buildcon: The company received letters of intent from Dakshinanchal Vidyut Vitran Nigam for two projects worth Rs 807.64 crore.


Nifty Outlook

The domestic benchmark Nifty index settled off-highs at 17859 levels, down 132 points after a volatile trading session.

Broader markets too performed in line with benchmark as Mid & Small cap index were down 0.64% and 0.8% respectively, leading to weak market breadth.

All major sector gauges tracked at NSE settled in red, IT & Media index lost maximum, down 2% and 1.45% respectively while FMCG pack showed some signs of reversal as it settled on a flattish note.

Nifty index found support from a crucial zone i.e. 17800-17780 levels. This is a important support zone, decisive fall below the same will open the gates for further sell-off towards 17600 levels whereas bulls will gain momentum above 17950-18000 levels.


Derivatives Overview & Outlook

On Friday, Nifty  futures added around 3% of open interest as short buildup whereas Banknifty future remained almost unchanged on open interest front.

Majority of F&O sectors settled lower. Amongst them, Textile, Chemicals, IT and Banking stocks witnessed maximum addition of short positions.

On options front, call writing was seen at 18000 strike and maximum positions are at 18000 CE and 18000 PE


FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 5213 Cr in the cash segment, sold stocks futures worth Rs 1546 Cr and also sold index futures worth Rs 2581 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2757 Cr.



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