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

Post gap up opening, benchmark Nifty index kept the bullish momentum rolling till the end to settle at the day’s top after adding 2.58% or 446 points at 17759.3 levels.

Overview and Outlook

Global Market update

  • US equity markets ended lower in range 0.56 to 0.8%’
  • European equity markets were down by average 1%
  • Asian equity markets are also trading in red
  • SGX Nifty is down 37 points (as on 8:12 AM)

 

News Highlights from across the globe

  • U.S. stocks ended the month with their fourth straight daily decline on Wednesday, cementing the weakest August performance in seven years as worries about aggressive interest rate hikes from the Federal Reserve persist.
  • An Asian share index dropped to a six-week low, dragged down by the tech sector, with China’s bourses among the few to show any resilience.
  • Oil was on the back foot, sliding to about $89 a barrel.

 

Important news & Earnings Updates from the domestic front

  • Zee Entertainment: The company entered strategic licensing agreement with Disney Star for TV broadcasting rights for ICC Men’s and Under 19 global events for a period of four years.
  • Tata Motors: The company has bought 49% stake of Marcopolo S.A. in Tata Marcopolo Motors for Rs 99.96 crore. Consequently, TMML will become a wholly owned subsidiary of the company.
  • Tata Steel: The company has invested Rs 54 crore in its wholly owned subsidiary Tata Steel Mining.
  • Infosys: The company divested its minority stake in San Francisco based Trifacta Inc for $12 million.
  • Inox Wind: The company approved fund raising of Rs 800 crore via issue of non-convertible preference shares to promoters on preferential basis. The funds will be used for repayment of debt. It aims to achieve net debt zero status “in the near future.”
  • Credit Access Grameen: The company has entered an arrangement to avail $90 million through first of its kind Loan Syndication Arrangement led by HSBC Bank. The other lenders in the syndication arrangement include Bank of India, Union Bank of India and UCO Bank.
  • Aditya Birla Fashion and Retail: The company received approval from Competition Commission of India for acquisition of 7.49% stake by Caladium Investment Pte for Rs 2,195 crore.

 

Nifty Outlook

Post gap up opening, benchmark Nifty index kept the bullish momentum rolling till the end to settle at the day’s top after adding 2.58% or 446 points at 17759.3 levels.

Broader markets performed in line with benchmark, Mid & Small cap index gained 1.92% and 1.26% respectively, leading to fairly positive market breadth.

All sector gauges tracked at NSE settled in green, Banking & Finance pack gained maximum, up over 3% apart from this IT, Consumer Durables, Oil & Gas performed quite well, up over 2% each.

Steep rise witnessed on Tuesday has completely over shadowed past couple of sessions move. Going ahead, 17800/18000 are the immediate resistance on the higher side. Crossover and sustenance above the same will open the doors for further upmove in immediate near term.

 

Derivatives Overview & Outlook

On Tuesday, both Nifty & Banknifty futures added around 6% & 8% of open interest respectively as long buildup.

Majority of F&O sectors settled higher. Among them, Chemicals, Capital Goods and Banking stocks witnessed maximum additions of long positions.

On options front, put writing was seen at multiple strikes and maximum positions are at 18000 CE & 17000 PE followed by 17500 PE.

 

FII & DII Trading Activity

On Tuesday, FIIs bought stocks worth Rs 4166 Cr in the cash segment, bought stocks futures worth Rs 1298 Cr and also bought index futures worth Rs 1782 Cr. DIIs were net sellers in the cash segment to the tune of Rs 657 Cr.

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