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

Benchmark Nifty index settled on a flat note at 17314 levels, down just 17 points from its previous closing values, after a highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets settled lower by 2.10% to 3.8%.
  • Barring FTSE, European equity too ended in red, down over 1%
  • Asian equity markets are also trading red
  • SGX Nifty is down over 250 points (as on 8:21 AM)

 

News highlights from across the globe

  • Investor sentiment in Indian markets will be mixed after U.S. stocks tumbled over the weekend, with data showing a hot labour market that will likely keep the Fed on its aggressive hiking.
  • Though India’s benchmark indices snapped their worst three-week losing streak, the rupee slumped to a record low against the U.S. dollar. The weekly gains came amid a surge in oil prices following the OPEC+ bloc’s decision to cut supply.

 

Important news updates from the domestic front

  • Investors will also be tracking the quarterly earnings season going into this week. Earnings of India’s top IT firms such as TCS Ltd., Wipro Ltd. and Infosys Ltd. are scheduled.
  • Jaiprakash Associates/Jaiprakash Power Ventures: To meet on Oct. 10 to discuss divestment plans. Jaiprakash Power board to discuss the proposal of divestment of Nigrie Cement Grinding Unit and review the progress made in debt reduction.
  • Suzlon Energy: The board of the company appointed Vinod R Tanti as the Chairman and Managing Director, and Girish R Tanti as the Executive Director designated as the Executive Vice Chairman with immediate effect. Tulsi Tanti, Founder and Chairman of the company, passed away on Oct. 1.
  • LIC/IDBI Bank: The government has invited bids for stake sale in IDBI Bank, according to a DIPAM notification. In the divestment, the government will offload 30.48% stake in the bank, while LIC will sell 30.24%. LIC currently holds 49.24% in IDBI Bank, while the government owns 45.48%.
  • Hero MotoCorp: The two-wheeler major ventured into electric mobility with the launch of its first electric scooter Vida V1.
  • Star Health and Allied Insurance Co.: The insurer reported 21% increase on-year in gross direct premium for health-retail category during year-to-date Sept. 30, 2022, while the same for health-group segment saw 49% decline during the period.
  • Canara Bank: The bank has clarified that that it does not have any direct or indirect control in the management or day to day operations of Brickwork Ratings India, nor does it have any member on the board or any other committees of Brickwork. A news report regarding SEBI ordering Brickwork to shut down operations had claimed that Canara Bank is a promoter and strategic partner of the agency.
  • Tata Motors: Jaguar Land Rover, a wholly owned subsidiary of the company, saw sales decline 4.9% on-year to 88,121 units during the quarter ended Sept. 30, 2022. Sale of Jaguar cars declined 9.9% to 17,340 units, while Land Rover saw 3.6% decline in sale at 70,781 units.
  • HDFC: The mortgage lender will issue secured redeemable non-convertible debentures worth Rs 1,000 crore and option to retain oversubscription of Rs 11,000 crore on Oct. 11, 2022, with a coupon rate of 8.07%.
  • JSW Steel: The committee of creditors for National Steel and Agro Industries Ltd. has approved the resolution plan submitted by JSW Steel Coated Products Ltd., a wholly owned subsidiary of the company, and declared it as the successful resolution applicant.
  • Gujarat Mineral Development Corporation: The company commenced geological studies and on-ground design for mineral exploration programs over 1,400 hectares in and around Ambaji mining lease in North-Eastern Gujarat. The findings could help reduce copper imports.

 

Nifty Outlook

Benchmark Nifty index settled on a flat note at 17314 levels, down just 17 points from its previous closing values, after a highly volatile trading session.

Broader markets too traded in line with benchmark. Resultant, market breadth was flat.

Most of the sectoral gauges tracked at NSE settled in red. Nifty IT and FMCG index were the top losers, down 0.7% & 0.65% respectively while Media and Realty index were the top gainers, rose 0.38% & 0.32% respectively.

Going ahead, we reiterate our bullish view on Nifty index till it is holding above 17000 levels.

 

Derivatives Overview & Outlook

On Friday, no meaningful activity was seen among Nifty and Banknifty futures on price as well as on open interest front.

On the sectoral front, long buildup was seen among Realty, Telecom and Media stocks whereas some short buildup was seen among IT, Infra and Oil & Gas stocks.

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

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 1712 Cr in the cash segment, sold stocks futures worth Rs 819 Cr and bought index futures worth Rs 1699 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 1024 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17440-17550; Supports 17200-17100

Banknifty Futures – Resistances 39650-39950; Supports 38900-38700

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