Daily Market Update- Equity 12 Aug 2022 | Globe Capital Market LTD.
12-Aug-2022
Daily Market Update- Equity 12 Aug 2022

Post strong gap up opening, Nifty index failed to build on the initial gains, settled near the day’s low at at 17659 levels, up 124 points.

Overview and Outlook

Global Market update

  • US equity markets were mix, Nasdaq lost 0.5% while Dow Jones ended flat
  • European equity markets were also mix, FTSE, DAX ended in red while CAC was up 0.33%
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:12 AM)

 

News Highlights from across the globe

  • Japan stocks surged on return to trade, while shares in the Asia-Pacific were mixed on Friday following strong gains in the previous session as investors digested the U.S. inflation report.
  • Oil gained as fears of a slowdown in demand eased after IEA lifted consumption estimates. The local currency depreciated against the U.S. dollar on Thursday amid rising crude oil prices.

 

Important news & Earnings Updates from the domestic front

  • Sterling and Wilson Renewable Energy: Promoter Shapoorji Pallonji will offload 1.25% stake in the company via offer for sale. The floor price is Rs 270 apiece.
  • Voltas: Life Insurance Corporation raised its stake in the company to 6.86% from 4.83%.
  • Aurobindo Pharma: The pharma company reported a 32.4% year-on-year growth in consolidated profit at Rs 520.4 crore for the quarter ended June FY23, impacted by lower other income and operating income.
  • Aster DM Healthcare: The company reported a 35% year-on-year increase in consolidated profit at Rs 79.77 crore in the quarter ended June FY23, driven by operating performance, other income and top line.
  • Sunteck Realty: The company reported a 726% year-on-year increase in consolidated profit at Rs 24.94 crore for the quarter ended June FY23, driven by low base.
  • KNR Constructions: The company registered a 20.3% year-on-year decline in consolidated profit at Rs 89.61 crore for the quarter ended June FY23, impacted by tepid growth in operating income and higher raw material cost.
  • Apollo Hospitals Enterprise: The healthcare services provider reported a 35.3% year-on-year decline in consolidated profit at Rs 323.8 crore for the June FY23 quarter on a high base.

 

Nifty Outlook

Post strong gap up opening, Nifty index failed to build on the initial gains, settled near the day’s low at at 17659 levels, up 124 points.

Broader markets performed in line with benchmark as Mid & Small cap index gained 0.9% & 0.87% respectively, despite this market breadth was flat.

Majority of sector gauges tracked at NSE settled in green, PSU Bank index gained maximum, up 2.38% while FMCG index was at the bottom of the tally, down nearly 1%.

Nifty index is gaining on expected lines, we see it heading towards 17800 levels in the immediate near term, and hence, any dip can be utilized to take fresh entry.

 

Derivatives Overview & Outlook

Yesterday, both Nifty and Banknifty futures added around 1% and 11% of open interest as long positions.

On the sectoral front, long buildup was seen among Capital Goods, Oil & Gas and Textile stocks whereas some short buildup was seen among Media stocks.

On options front, Nifty will start the new weekly contracts with maximum positions at 17500 PE and 17700 CE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 2298 Cr in the cash segment, bought stocks futures worth Rs 983 Cr and also bought index futures worth Rs 922 Cr. On the other hand, DIIs were net sellers in the cash segment to the tune of Rs 730 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17750-17825; Supports 17580-17500

Banknifty Futures – Resistances 39250-39700; Supports 38700-38400

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