Daily Market Update- Equity 12 July 2022 | Globe Capital
12-Jul-2022
Daily Market Update- Equity 12 July 2022

Nifty index settled near the day’s top but in value terms it was a flattish closing as the benchmark index opened gap down.

Overview and Outlook

Global Market update

  • US equity markets ended lower by 0.5 to 2.26%
  • European equity markets also drifted lower
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is down 128 points (as on 8:19 AM)

 

News Highlights from across the globe

  • Asian stocks were mostly lower on Tuesday amid concerns that the upcoming earnings season, a looming U.S. inflation print and China’s struggle with Covid will stoke worries about economic prospects.
  • Amid gas shortage and fears of economic recession the U.S. dollar rose the most in a month to rise to an over 2-year high, spurring the Euro to close in on parity.
  • Japan led the regional decline, while Hong Kong futures were also in the red following the worst drop in U.S.-traded Chinese shares since May. U.S. contracts wavered after technology shares led a Wall Street slide, including a plunge in Twitter Inc. as Elon Musk walked away from his deal to buy the firm.

Important news & Earnings Updates from the domestic front

 

  • Power Grid: The company has placed B.S. Jha under suspension with effect from July 5 after his arrest by CBI. The company said that it was not aware of any negotiations and that there is no material impact on the company.
  • Star Health and Allied Insurance: The company has partnered with Common Services Centers, under Ministry of Electronics & Information Technology, to expand the insurance products to rural customers, across tier-II, tier-III cities and rural markets pan India.
  • Mangalore Refinery and Petrochemicals: To consider share issue for complying with minimum public shareholding requirements by issue of further public offer, preferential issue, qualified institutions placement on July 15.
  • HFCL: The company received an order from a domestic telecom company for their Fiber to the Home Network and Long Distance Fiber Network in various Telecom Circles. The order is worth Rs 59.22 crore.

 

Nifty Outlook

Nifty index settled near the day’s top but in value terms it was a flattish closing as the benchmark index opened gap down.

Broader markets outperformed benchmark as Mid & Small cap index was up 0.3% & 0.9% respectively. Due to which market breadth was fairly inclined towards the advancing side.

Barring IT, that was down over 3% after weaker than expected quarterly earnings by TCS, all other sector gauges settled in green. Metal & PSU Bank index gained maximum, up nearly 2% each.

Nifty index is firmly placed on daily charts, we reiterate our view, next round of buying will be witnessed once 16200 is taken out on closing basis.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures remained almost unchanged on the price front and added around 8% of open interest whereas Banknifty futures added around 7% of open interest as long positions.

Majority of F&O sectors settled higher. Auto, Telecom and Metal stocks witnessed maximum addition of long positions.

On options front, put writing was seen at multiple strikes along with call writing at multiple strikes and maximum positions are at 16000 PE and 16600 CE closely followed by 16200 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 171 Cr in the cash segment, sold stocks futures worth Rs 525 Cr and also sold index futures worth Rs 560 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 297 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 16260-16350; Supports 16100-16000

Banknifty Futures – Resistances 35700-36050; Supports 35200-34950

 

Earnings To Watch: HCL Technologies, Sterling and Wilson Renewable Energy, National Standard (India), Delta Corp, Anand Rathi Wealth

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Open Account