Daily Market Update- Equity 10 Aug 2022 | Globe Capital
10-Aug-2022
Daily Market Update- Equity 10 Aug 2022

The new week started on a stellar note, Nifty index gained 127 points to settle at 17525 levels after trading sideways in the previous week.

Overview and Outlook

Global Market update

  • US equity markets ended on flat to negative note
  • European equity markets too settled on flat to negative note
  • Most of the Asian equity markets are trading in red
  • SGX Nifty is little changed, down just 9 points (as on 8:25 AM)

 

News Highlights from across the globe

  • U.S. stocks retreated ahead of Wednesday’s inflation report to gauge the path of Federal Reserve tightening.
  • Treasury yields climbed, while the dollar fell.
  • Equities fell in Japan, South Korea and Australia, while US contracts wavered following a drop in the S&P 500 for a fourth session.

 

Important news & Earnings Updates from the domestic front

  • Strides Pharma: The company has a target to launch 20 products every year in the U.S. market and has a growth outlook of $250 million in FY23 for the U.S. business.
  • AU Small Finance Bank: The bank approved issue price for QIP at Rs 580 per share (including a premium of Rs. 570 per share) which is at a discount of 1.83% to the floor price.
  • Bharti Airtel Q1 FY23 (Consolidated, QoQ) Revenue up 4% at Rs 32,804.6 crore Vs Rs 31,500.3 crore. EBITDA up 3% at Rs 16,529.40 crore Vs Rs 16,040.3 crore. EBITDA margin 50.4% Vs 50.9%. Net profit fell 33.5% at Rs 2,468.8 crore Vs Rs 3,715 crore.
  • Power Grid Corporation Of India Q1 FY23 (Consolidated, YoY) Revenue up 7% at Rs 10,905 crore Vs Rs 10,219 crore. EBITDA up 3% at Rs 9,249.23 crore Vs Rs 9,000.65 crore. EBITDA margin 85% Vs 88%.

 

Nifty Outlook

The new week started on a stellar note, Nifty index gained 127 points to settle at 17525 levels after trading sideways in the previous week.

Broader markets were flat as mid & Small cap index could gain just about 0.3% each.

Majority of sector gauges tracked at NSE settled in green, Pvt Bank & Metal index outperformed as they were up over 1% each.

Nifty index crossed 17200-500 range on the higher side, this has opened the gates for further up move till 17600/800 levels in the immediate near term. Going ahead, sustenance above, 17500 spot levels will be the key to rise up to those levels.

 

Derivatives Overview & Outlook

On Monday, Nifty and Banknifty futures added around 8% & 12% of open interest respectively as long buildup.

On sectoral front, long buildup was seen among Metal, Banking and Power stocks whereas some short buildup was seen among Cement stocks.

On options front, put writing was seen at multiple strikes along with call writing at 18000 & 17800 strike and maximum positions are at 17400 PE and 18000 CE.

 

FII & DII Trading Activity

On Monday, FIIs bought stocks worth Rs 1450 Cr in cash segment, bought stocks futures worth Rs 437 Cr, and bought index futures worth Rs 138 Cr. DIIs were net sellers in the cash segment to the tune of Rs 141 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17625-17700; Supports 17480-17380

Banknifty Futures – Resistances 38600-38850; Supports 38000-37700

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