Daily Market Update- Equity 12 Dec 2022 | Globe Capital
12-Dec-2022
Daily Market Update- Equity 12 Dec 2022

Nifty index settled off lows on the final trading session of the week, closed shop at 18496 levels, down 112 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets were down by 0.9%
  • European equity markets ended in green
  • Asian equity markets are trading in red
  • SGX Nifty is down by 63 points (as on 8:20 AM)

 

News highlights from across the globe

  • Stocks declined in Asia at the start of a pivotal week for markets, with interest rate decisions due from the Federal Reserve, the European Central Bank and a host of their peers.
  • The S&P 500 ended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow.
  • The dollar edged higher and made gains against the yen, the euro and the offshore yuan in early trading.

 

Important news updates from the domestic front

  • Kalpataru Power Transmission: The company raised Rs 99 crore via allotment of non-convertible debentures on a private placement basis.
  • PSP Projects: The company received a letter of intent from Nila Spaces for a project worth Rs 121.51 crore to construct high-rise residential towers.
  • Emami: The company increased its shareholding in subsidiary Brillare Science from 77.53% to 80.59%.
  • Bank of Baroda: The bank hike MCLR rates in the range of 25-30 basis points across tenors, with effect from Dec. 12.
  • IDFC: The scheme of amalgamation for the merger of wholly owned subsidiary companies IDFC Alternatives, IDFC Trustee Co., IDFC Projects with IDFC became operative from Dec. 9.
  • Adani Total Gas: Company has received letter of award from Convergence Energy Services Ltd. for operation of EV charging stations in eight cities (Ahmedabad, Bengaluru, Chennai, Delhi, Kolkata, Mumbai, Pune and Surat) for eight years.
  • Bharti Airtel: After receipt of notice for conversion of FCCBs of principle value of $8.6 mn from certain holders of FCCBs, board members have approved allotment of 11.88 lakh shares at conversion price of Rs 521 per share to such FCCBs holders.

 

Nifty Outlook

Nifty index settled off lows on the final trading session of the week, closed shop at 18496 levels, down 112 points from its previous closing value.

Mid cap index performed in line with benchmark, down 0.65% while Small cap index underperformed, down 1.10%, leading to extremely weak market breadth.

Sector performance was largely inclined towards the declining side, IT index was the worst performer of the day, down over 3% followed by PSU Bank, Realty, Oil & Gas & Metal index, down over 1% each while some buying was witnessed in the FMCG space, up 0.86%.

Nifty index has tested important support placed around 18400 levels and steep bounce back was witnessed thereafter. Going ahead, bulls will gain momentum above 18550, post which 18650/750 levels will be tested in the immediate near term.

 

Derivatives Overview & Outlook

On Friday, Nifty futures shed around 2% of open interest as long unwinding whereas Banknifty future settled on a flat note and shed around 7% of open interest.

Majority of F&O sectors settled lower. Amongst them, IT and Capital Goods stocks witnessed maximum addition of short positions.

On options front, call writing was seen at multiple strikes and maximum positions are at 18600 CE and 18600 PE.

 

FII & DII Trading Activity

Last week,  FIIs sold stocks worth Rs 3470 Cr in the cash segment, bought stocks futures worth Rs 1409 Cr and also bought index futures worth Rs 620 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3712 Cr during the week.

 

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