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

The benchmark Nifty index settled lower at 18634 levels, down 91 points from its previous closing values after highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets ended higher in range 0.5 to 1%
  • Barring FTSE, other European equity markets settled on flat to positive note
  • Asian equity markets are trading mix
  • SGX Nifty is little up by 40 points(as on 8:30AM)


News highlights from across the globe

  • A rally in technology stocks in US resumed on Thursday, pushing the S&P 500’s gains since an October low past 20%, the marker of a bull market. A jump in jobless claims to the highest since October 2021 delivered a boost to the tech sector.
  • Oil dropped on regional media reports that ignited speculation the U.S. and Iran are nearing a deal that would pave the way for more Iranian crude exports. US officials denied the reports.
  • Investors are reassessing the trajectory of Fed policy after central banks in Australia and Canada this week unexpectedly raised rates. In Europe, the Stoxx 600 ended little changed with SBB, the company at the center of Sweden’s property crisis, down 12%


Important news updates from the domestic front

  • Tata Power, Tata Steel: Tata Power Renewable Energy, through its subsidiary TP Vardhaman Surya, inked a pact with Tata Steel to produce 966 MW of hybrid renewable power. The project has a hybrid renewable capacity of 379 MW of solar and 587 MW of wind power. Tata Steel will invest 26% of its equity in the project, which is expected to be commissioned by June 1, 2025.
  • GAIL won the bidding for JBF Petrochemicals’ corporate insolvency process and infused a total resolution plan amount of Rs 2,101 crore. GAIL now adds purified terephthalic acid (PTA) to its existing petrochemical portfolio through this acquisition.
  • Blue Dart appointed Sudha Pai as chief financial officer with effect from Sept. 1, 2023. Pai is currently the chief financial officer at DHL Global Forwarding, India. Blue Dart also names V.N. Iyer as group CFO with effect from Sept. 1.
  • Hindustan Aeronautics: Board meeting to consider the sub-division of equity shares will be held on June 27.
  • CEAT inked an agreement to further invest up to Rs 9 crore to acquire 10.89% of Tyresnmore. Upon completion of the agreement, Tyresnmore will become a subsidiary of the company, with CEAT holding a 56.9% stake on a fully diluted basis.
  • IRB Infrastructure Developers’s gross toll revenue gained 8.9% year-on-year to Rs 864.75 million from Rs 794.32 million a year ago.
  • NHPC’s unit NHDC was allotted a pump hydro storage site in Madhya Pradesh with a storage capacity of 525 MW x 6 hours by the new and renewable energy department of the Government of Madhya Pradesh.
  • Pitti Engineering made an additional investment of Rs 5 lakh in its wholly owned subsidiary, Pitti Rail and Engineering Components, by subscribing to 50,000 fully paid-up equity shares of face value of Rs 10 each through a rights issue. This investment is made to enable Pitti Rail to meet its expenses for operations and general corporate purposes.


Nifty Overview & Outlook

The benchmark Nifty index settled lower at 18634 levels, down 91 points from its previous closing values after highly volatile trading session.

The Broader market underperformed the benchmark as Midcap and Small cap index were down nearly 1% each.

All sectoral indices, barring Metal, settled in red. Amongst them, Nifty Realty and Media led the declines, down over 1.5% each followed by IT and Pharma index that were down in the range over 1% each.

Technically, Nifty index ended on a weak note and formed a bearish red candlestick on a daily chart and re-entered in its previous congestion zone i.e. 18450-18660 levels. Going ahead, Nifty is expected to be sideways until it’s trading in the said congestion zone.


Derivatives Overview & Outlook

Yesterday, Nifty & Banknifty futures added around 4% & 3% of open interest respectively as short buildup whereas Finnifty futures shed around 13% of open interest as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Power & Chemical stocks witnessed maximum addition of short positions whereas long unwinding was seen among Auto, Cement and Telecom stocks.

On options front, call writing was seen at 18700 strikes and maximum positions are at 18700 PE and 18700 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 212 Cr in the cash segment, sold stocks futures worth Rs 1094 Cr and also sold index futures worth Rs 442 Cr. DIIs were net sellers in the cash segment to the tune of Rs 405 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18800-18880; Supports 18650-18550

Banknifty – Resistances 44350-44550; Supports 44000-43800

Finnifty – Resistances 19600-19660; Supports 19400-19300


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