Daily Market Update- Equity 1 Nov 2022 | Globe Capital
01-Nov-2022
Daily Market Update- Equity 1 Nov 2022

Post gap up opening, Nifty index consolidated for most part of the day before breakout in the final hour of trading, closed shop at the day’s high tad above 18000-mark after adding 225 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets ended lower in range 0.39 to 1.03%
  • Barring FTSE, other European equity markets ended flat
  • Asian equity markets are trading in green
  • SGX Nifty is up 114 points (as on 8:10 AM)

 

News highlights from across the globe

  • Asian stocks inched up in trading on Tuesday amid higher bond yields and investor focus on central bank decisions and further interest rate hikes. Equities gained little in Japan, South Korea and Australia while futures for Hong Kong climbed.
  • US-listed Chinese stocks fell and the S&P 500 declined, dragged down by big tech. Australian bond yields advanced ahead of a projected 25-basis-points rate hike by the central bank later Tuesday.
  • U.S. stocks declined as traders wait for the U.S. Federal Reserve’s meeting on Wednesday. Meanwhile, bond yields surged, with 10-year Treasuries rising 8 basis points to 4.09%.

 

Important news updates from the domestic front

  • LIC Housing Finance: The Reserve Bank of India imposed a fine of Rs 35 lakh against the company over regulatory non-compliance.
  • Axis Bank: Bain Capital is planning to sell 1.24% of total shares outstanding at the company at a discount of up to 2% to the closing price on Oct. 31, according to Bloomberg News. Direct sellers of the shares are- BC Asia Investments VII Ltd., BC Asia Investments III Ltd. and Investments South Asia IV. There is 30-day lock-up period on the sellers.
  • GHCL: The board of the company approved acquisition of a specified business undertaking in the Junagarh district of Gujarat, as a going concern on a slump sale basis from Ajmera Cements for a lump sum consideration of Rs 27 crore. The board also approved liquidation of U.S.-based subsidiary Grace Home Fashions LLC, and additional capex for roof top solar power project of 5 MW in yarn division of the company.
  • Trident: The company approved the put option exercised by Standard Chartered Bank against its NCDs, amounting to a payout of Rs 93.75 crore.
  • HFCL: The company received an approval from SIDBI, Project Management Agency and competent authority under the PLI Scheme to avail incentives worth Rs 652.79 crore on production and sales of telecom and networking products over a period of five years from 2022-23 to 2026-27.
  • Bharat Electronics: The company signed an agreement with Hyderabad-based Meslova Systems for cooperation in areas of artificial intelligence and machine learning for air defence systems for the armed forces. Also Dinesh Kumar Batra has retired as he Chairman and Managing Director of the company.
  • Cyient: The board of the company and its wholly owned subsidiary, Cyient DLM, have accorded approval for part-divestment of the latter, including but not Iimited to IPO.
  • Shriram Properties: The company signed an MoU with ASK Property Fund to set up a Rs 500-crore investment platform to acquire housing projects in Bengaluru, Chennai, and Hyderabad.
  • Zomato: The company will liquidate its Doha-based joint venture Zomato Media WLL with effect from Oct. 25. 2022.
  • Glenmark Pharmaceuticals: The company launched Fingolimod capsules in 0.5 mg capacity in the U.S.

 

Nifty Outlook

Post gap up opening, Nifty index consolidated for most part of the day before breakout in the final hour of trading, closed shop at the day’s high tad above 18000-mark after adding 225 points from its previous closing value.

Broader market performance was mix, Mid cap index soared over 1% while Small cap index settled on flattish note, due to which market breadth was flat.

All major sector gauges tracked at NSE settled in green, Auto & IT index gained maximum, up 1.45% apart from its Financial Service, Pharma, Oil& Gas index were over 1% each.

Nifty index has settled above 18000-mark, this is a positive development indicating buyer’s interest at current levels. Going ahead, host of macro-economic events are lined up during this week which will keep traders busy and lead to excessive volatility.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 5% of open interest as long buildup whereas Banknifty futures remained almost unchanged on open interest front.

Majority of F&O sectors settled higher. Amongst them, IT, Textile, Cement and Metal stocks witnessed maximum addition of long positions whereas short covering was seen among Power stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 18500 CE and 17800 PE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 4179 Cr in the cash segment, bought stocks futures worth Rs 1553 Cr and also bought index futures worth Rs 1850 Cr. On the other hand, DIIs sold stocks worth Rs 1107 Cr in the cash segment.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18125-18200; Supports 17980-17900

Banknifty Futures – Resistances 41650-42000; Supports 41250-41000

 

Earnings Today – Adani Ports And Special Economic Zone, Chambal Fertilisers & Chemicals, Cholamandalam Investment and Finance Company, CMS Info Systems, Dhanuka Agritech, Elantas Beck India, JK Tyre & Industries, Kansai Nerolac Paints, Karnataka Bank, LIC Housing Finance, Macrotech Developers, Max Healthcare Institute, FSN E-Commerce Ventures, Punjab National Bank, Prudent Corporate Advisory Services, Sun Pharmace

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