Daily Market Update- Equity 11 July 2022 | Globe Capital
11-Jul-2022
Daily Market Update- Equity 11 July 2022

Nifty index settled at 16220 levels, up 87 points after a lackluster trading session where neither bulls nor bears were able to drive market in their direction.

Overview and Outlook

Global Market update

  • US equity markets ended on a flattish note
  • European equity markets ended in green
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is down nearly 100 points (as on 8:20 AM)

 

News Highlights from across the globe

  • Wall Street ended flat on Friday as Treasury yields jumped following a stronger-than-expected US jobs report, which suggested the Federal Reserve may push further interest rate hikes to cool the economy and slow inflation.
  • Asian shares started cautiously on Monday as investors braced for a US inflation report that could force another super-sized hike in interest rates, and the start of an earnings season where profits could be under pressure.

 

Important news & Earnings Updates from the domestic front

 

  • Foreign investors continue to desert Indian equity markets and have pulled out over Rs 4,000 crore this month so far amid steady appreciation of the dollar and rising interest rates in the US. However, the pace of selling by foreign portfolio investors (FPIs) has been declining over the last few weeks.
  • The market regulator Securities and Exchange Board of India (Sebi) issued a consultation paper on July 8, to include dealing in mutual fund units under the Prohibition of Insider Trading Regulations.
  • Tata Consultancy Services (TCS) reported a 5.2% YoY rise in consolidated net profit to Rs 9,478 crore for the first quarter ended June 30. It reported a 16.2% YoY growth in revenue at Rs 52,758 crore for the quarter, with all the big geographies and business segments reporting strong numbers.
  • HDFC/HDFC Bank: The company received approval from Pension Fund Regulatory and Development Authority for the scheme of merger with HDFC Bank. The scheme is yet to receive approval from Competition Commission of India, the National Company Law Tribunal and company’s shareholders and creditors.
  • CCL Products: The company has forayed into plant-based meat products in India through the launch of its brand Continental Greenbird.
  • Hindustan Aeronautics: The company along with France based Safran will be jointly develop engines for military helicopters. The new joint venture will develop and produce engines in India.
  • Bandhan Bank: The bank’s loans and advances rose 20% YoY to Rs 96,649 crore in quarter from April to June. Deposits also grew 20% to Rs 93,057 crore. CASA ratio stood at 43.2% on June 30.
  • Zydus Lifesciences: The company has launched Sitaglyn and Siglyn (Sitagliptin), for the management of Type 2 diabetes at a 60% low cost than the originator.
  • Dr Reddy’s: The company has launched Fesoterodine Fumarate rxtended-release tablets, a therapeutic generic equivalent to Toviaz, in the U.S. market.

 

 

Nifty Outlook

Nifty index settled at 16220 levels, up 87 points after a lackluster trading session where neither bulls nor bears were able to drive market in their direction.

Broader market performance was in line with benchmark, Mid & Small cap index were up 0.2% and 0.3% respectively.

Barring Metal index that was down 0.8%, all other sector gauges tracked at NSE settled in green.

Nifty index has crossed the range 15600-15900 levels from the higher side and successfully achieved the upside target of 16200-mark. Going ahead, sustenance above this levels will lead to further up move till 16400-450 zone.

 

Derivatives Overview & Outlook

On Friday, both Nifty & Banknifty futures shed around 5% & 3.5% of open interest respectively as short covering.

On sectoral front, long buildup was seen among Textile, IT and Capital Goods stocks whereas some short buildup was seen among Metal stocks.

On options front, put writing was seen at 16200 & 16000 strikes along with call writing at 16400 & 16500 strikes and maximum positions are at 16000 PE and 16200 CE.

 

FII & DII Trading Activity

Foreign institutional investors (FIIs) have offloaded shares worth Rs 925.22 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 980.59 crore on July 7, as per provisional data available on the NSE.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 16275-16400; Supports 16150-16000

Banknifty Futures – Resistances 35300-35500; Supports 35000-34700

 

AGM today: Havells India, IIFL Finance, NELCO

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