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

Steep selloff in the latter half of the session led Nifty close near the day’s low after a cut of 257 points at 16983 levels.

Overview and Outlook

Global Market Update

  • US equity markets were mix, Nasdaq was down over 1% while Dow Jones ended on a flattish note
  • European equity markets settled in red
  • Asian equity markets are largely trading in red
  • SGX Nifty is little changed (as on 8:17 AM)


News highlights from across the globe

  • The S&P 500 and Nasdaq ended lower on Tuesday, with indications from the Bank of England that it would support the country’s bond market for just three more days adding to market jitters late in the session.
  • Asia-Pacific markets were mixed on Wednesday amid South Korea’s benchmark index fell after the central bank pivoted back to outsized interest-rate increases. Investors are also waiting for inflation data from the US due later this week.


Important news updates from the domestic front

  • AstraZeneca Pharma India: The nasal Covid-19 vaccine by the company’s parent, AstraZeneca Plc, failed to elicit a strong immune response in an early test, reported Bloomberg.
  • Reliance Industries/Mahindra & Mahindra: Jio-bp, the fuel retailing JV between Reliance Industries and bp, will extend its partnership with Mahindra & Mahindra to set up charging infrastructure for the upcoming electric launches of the Indian SUV maker.
  • Infosys: Ravi Kumar S., has stepped down from the office of President of Infosys, with effect from Oct. 11, 2022.
  • Tata Consultancy Services: The company enhanced its Quartz solution, which can be used by central and commercial banks to support the entire lifecycle of CBDCs, including issuance, book-keeping and transactions.
  • Shipping Corporation Of India: In separate meetings, unsecured and secured creditors, and equity shareholders of the company approved demerger of non-core assets of the company Shipping Corporation of India Land And Assets Ltd.
  • Indian Railway Finance Corporation: The company has signed a MoU with India Infrastructure Finance Company to strengthen cooperation in financing railway infrastructure projects with forward and backward linkages to Indian railways sector.
  • L&T Finance Holdings: SEBI approved the sale of L&T Investment Management Ltd., a wholly owned subsidiary and asset manager of L&T Mutual Fund, to HSBC Asset Management (India) Pvt. Ltd., subject to compliance with certain conditions.
  • Suzlon Energy: The company has secured an order from Aditya Birla Group to supply 69 units of wind turbine generators with a total installed capacity of 144.9 MW in Gujarat and Madhya Pradesh by 2023.
  • NMDC: The Ministry of Corporate Affairs approved the merger of NMDC into NMDC Steel and their respective shareholders and creditors.


Nifty Outlook

Steep selloff in the latter half of the session led Nifty close near the day’s low after a cut of 257 points at 16983 levels.

Broader markets too performed in line with benchmark as Mid & Small cap index settled 1.7% lower, due to which market breadth was quite weak.

All sector gauges tracked at NSE settled in red, Realty, Metal & Media index lost maximum, down in range 2.02 to 3.07%.

Nifty index has settled below 17000-mark, this is a sign of weakness indicating decline to continue. Going ahead, decisive fall below 16950 spot levels could take the benchmark towards 16850 in quick succession.


Derivatives Overview & Outlook

Yesterday, Nifty futures added around 3% of open interest as short buildup whereas Banknifty futures shed around 3% of open interest as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Realty, Oil &Gas, Banking and Telecom stocks witnessed maximum addition of short positions.

On options front, call writing was seen at multiple 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 4613 Cr in the cash segment, sold stocks futures worth Rs 1659 Cr and also sold index futures worth Rs 1015 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2431 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17100-17200; Supports 16850-16750

Banknifty Futures – Resistances 39050-39275; Supports 38370-38100


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