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


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