Daily Market Update- Equity 11 Aug 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 11 Aug 2022

Benchmark Nifty index ended on a flattish note after a lackluster trading session, settled at 17535 levels, up just 10 points from its previous closing values.

Overview and Outlook

Global Market update

  • US equity markets were up in range 1.6 to 2.8%
  • European equity markets too settled in green
  • Most of the Asian equity markets are trading in green
  • SGX Nifty is up 217 points (as on 8:16 AM)


News Highlights from across the globe

  • Asian stocks extended a rally on Thursday after softer-than-expected US inflation data, which stoked speculation that the Federal Reserve could pivot to a shallower pace of interest-rate hikes.
  • Wall Street equities rallied and the dollar tumbled after signs of sharply decelerating U.S. inflation prompted bets that the Federal Reserve would raise interest rates at a slower pace than previously expected.
  • China’s factory-gate inflation eased in July to a 17-month low, defying global cost pressures as slower domestic construction weighed on raw material demand, although consumer price increases hit a two-year high as pork supplies tightened.


Important news & Earnings Updates from the domestic front

  • NHPC: The company approved monitisation of Uri-1 Power Station or any other power stations for 10-15 years in single tranche during FY23.
  • Mahindra & Mahindra: Life Insurance Corporation has reduced its stake to 6.42% from 8.43%.
  • GAIL: The company will consider raising funds via foreign currency bonds or term loan on Aug. 17.
  • Coal India: The state-owned company’s Q1 clocked a 178 percent year-on-year growth in consolidated profit at Rs 8,834.22 crore for the quarter ended June FY23 on a low base. The June quarter FY22 earnings were affected by second Covid wave.
  • Tata Consumer Products: The Tata Group company recorded a 38 percent year-on-year growth in profit at Rs 277 crore for the quarter ended June FY23, with revenue rising 11 percent to Rs 3,327 crore and EBITDA increasing 14 percent to Rs 460 crore compared to year-ago period.
  • Eicher Motors: The two-wheeler and commercial vehicle maker reported a 157.5 percent year-on-year growth in consolidated profit at Rs 610.66 crore for the quarter ended June FY23 supported by low base.
  • Oil India: The company reported a 166 percent year-on-year growth in consolidated profit at Rs 3,230 crore in the quarter ended June FY23. Revenue grew by 86.5 percent to Rs 11,567 crore in Q1FY23, compared to Rs 6,202 crore in same period last year.


Nifty Outlook

Benchmark Nifty index ended on a flattish note after a lackluster trading session, settled at 17535 levels, up just 10 points from its previous closing values.

Broader markets underperformed the benchmark as Mid and Small Cap index settled on flat to negative note; Resultant, market breadth was slightly tilted towards the declining side.

Performance on the sectoral front was mix. Nifty Metal index was at the top of the tally, gained 1.62% followed by Pvt Bank index that was up just over half-a-percent. On the other hand, Nifty IT and Realty index were the top losers down nearly 1% each.

Going ahead, we reiterate our bullish view on Nifty index till it is holding above 17300 levels.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen among Nifty & Banknifty futures on the price front as well as on open interest front.

On sectoral front, long buildup was seen among Chemicals and Metal stocks whereas some short buildup was seen among Auto Finance and Telecom stocks.

On options front, put writing was seen at multiple strikes along with call writing at multiple strike and maximum positions are at 17000 PE and 18000 CE closely followed by 17800 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 1062 Cr in cash segment, sold stocks futures worth Rs 461 Cr, and sold index futures worth Rs 877 Cr. DIIs were net sellers in the cash segment to the tune of Rs 768 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17625-17700; Supports 17450-17375

Banknifty Futures – Resistances 38600-38850; Supports 38000-37750


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