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

 

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.