Daily Market Update- Equity 11 Oct 2022 | Globe Capital
11-Oct-2022
Daily Market Update- Equity 11 Oct 2022

Nifty index settled near the day’s top after highly volatile trading session, closed shop at 17241 levels, down 73 points.

Overview and Outlook

Global Market Update

  • US equity markets were downn inr range 0.3% to 1.04%.
  • European equity markets ended on flat to negative note
  • Asian equity markets are trading in red
  • SGX Nifty is down 41 points (as on 8:15 AM)

 

News highlights from across the globe

  • US stocks fell on Monday, with the Nasdaq posting its lowest close since July 2020, as investors worried about the impact of higher interest rates and pulled out of chipmakers after the United States announced restrictions aimed at hobbling China’s semiconductor industry.
  • The mood remains fragile ahead of Thursday’s US inflation data, with the case for another 75 basis-point rate hike likely to be strong if the data comes in hotter-than-expected.

 

Important news updates from the domestic front

  • Infosys: The board of the company will meet on Oct. 13 to consider proposal for buyback of shares.
  • Adani Ports and Special Economic Zone: The company received approval from Ahmedabad and Hyderabad benches of the National Company Law Tribunal to fully take over Gangavaram Port. The company will acquire the remaining 58.1% stake in a share-swap deal from DVS Raju and family for around Rs 6,200 crore, at Rs 120 apiece.
  • IDBI Bank: The financial bids for IDBI Bank privatisation are likely to be invited by March and the conclusion of the sale process is expected by September 2023, PTI reported.
  • Panacea Biotec: The company has received long-term supply awards worth $127.30 million (Rs 1,040 crore) from UNICEF and Pan American Health Organization for supply of its WHO pre-qualified fully liquid pentavalent vaccine, Easyfive-TT.
  • Adani Green Energy/Inox Wind: The company has completed acquisition of 100% equity share capital of three entities—Wind One Renergy, Wind Three Renergy and Wind Five Renergy—from Inox Green Energy Services, each housing 50 MW operational wind power projects.
  • Power Finance Corporation: Khandukhal Rampura Transmission Ltd., a wholly owned subsidiary of PFC Consulting Ltd. that was established to develop 400 KV Khandukhal-Rampura D/C line has been transferred to the successful bidder, Megha Engineering & Infrastructures Ltd.
  • Bank of Baroda: The lender hiked MCLR in the range of 10-15 basis points for across tenors. The revised MCLR will come into effect from Oct. 12, 2022.
  • IRB Infrastructure Developers: The company reported toll revenue collection of Rs 328.24 crore, declining 2% from previous month’s collection. The revenue rose 36.6% Year-on-Year.
  • Ashiana Housing: The company booked 224 units in Phase 1 of Gurugram project worth Rs 242.6 crore.

 

Nifty Outlook

Nifty index settled near the day’s top after highly volatile trading session, closed shop at 17241 levels, down 73 points.

Broader markets underperformed benchmark as Mid & Small cap index were down 0.9% each, leading to weak market breadth.

Barring IT, all other sector gauges tracked at NSE settled in red, it gained just over 1% while Consumer Durable index lost maximum, down 1.2% followed by PSU Bank & FMCG index that lost 1.1% each.

Going ahead, crossing above 17300 is the key for sustainable up move till 17400 and beyond while 17000 levels will open the gates for further sell-off.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 8% of open interest as short buildup whereas Banknifty futures shed around 2.5% of open interest as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Auto, Cement and Telecom stocks witnessed maximum addition of short positions whereas some long buildup was seen among IT stocks.

On options front, call writing was seen at 17700 strikes along with put addition at 17000 strikes and maximum positions are at 18000 CE followed by 17500 CE and 17000 PE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 2139 Cr in the cash segment, sold stocks futures worth Rs 2110 Cr and also sold index futures worth Rs 1316 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2137 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17325-17450; Supports 17100-17000

Banknifty Futures – Resistances 39450-39750; Supports 38900-38600

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