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

Post gap up opening, Nifty index failed to hold at higher levels, resultant profit taking was witnessed due to which the benchmark index lost all ground to settle on a flattish note at 17833 levels, up 34 points.

Overview and Outlook

Global Market update

  • US equity markets were up by over 1% to 2%
  • European equity markets ended higher by over 1% each
  • Asian equity markets are trading in green
  • SGX Nifty is trading flat (as on 8:11 AM)

 

News Highlights from across the globe

  • Asian shares rose after positive close on Wall Street on Friday, while the euro advanced as investors expected Europe to follow the Federal Reserve with more interest-rate hikes.
  • Japanese and Australian equities gained about 1% and US futures advanced after the S&P 500 and Nasdaq 100 snapped three-week losing streaks on Friday.
  • West Texas Intermediate crude slipped 0.9% to $86.02 a barrel.

 

Important news & Earnings Updates from the domestic front

  • Oberoi Realty: The company has approved scheme of amalgamation its four subsidiary companies – Oberoi Constructions, Oberoi Mall, Evenstar Hotels and Incline Realty. The rationale for the move was the similar nature of business of the companies and creating a simplified structure with greater management focus.
  • SpiceJet: The company has appointed Ashish Kumar as its new Chief Financial Officer. Kumar has served as Vice President (Head) – Corporate Finance at Interglobe Enterprises since January 2019. He also served as Chief Financial Officer at Interglobe Hotels from 2014 to 2018.
  • KEC International/Gujarat Industries Power: Gujarat Industries Power awarded an EPC Contract to KEC International at the cost of Rs 244 crores for Pooling Sub-station 400/33 KV, 1200 MW of Solar / Wind / Hybrid RE Park of 2375 MW capacity at Great Rann of Kutch area, Gujarat.
  • Bank of Baroda: The bank hiked the Marginal Cost of Funds Based Lending Rate from 5-15 bps across tenors with effect from Sept. 12
  • Indian Overseas Bank: The lender has hiked MCLR by 10 basis points across tenors, with effect from Sept. 10.

 

Nifty Outlook

Post gap up opening, Nifty index failed to hold at higher levels, resultant profit taking was witnessed due to which the benchmark index lost all ground to settle on a flattish note at 17833 levels, up 34 points.
Broader markets too performed in line with benchmark, Mid & Small cap index too settled on a flattish note, due to which market breadth was also flat.
Sector performance was mix, IT index gained maximum, up 2.2% while Realty & Financial Service index lost maximum, down 0.4% each.
Nifty index has filled the entire gap left due to gap up opening on Friday, this is a positive development. Hence, we see the benchmark index heading northwards towards 18000-mark, dips can be utilized to take fresh long positions.

 

Derivatives Overview & Outlook

On Friday, no meaningful activity was seen among Nifty and Banknifty futures on price as well as on open interest front.

On sectoral front, long buildup was seen among Oil & Gas, IT and Banking stocks whereas some short buildup was seen among Cement and Media stocks.

On options front, call writing was seen at multiple strikes along with put writing at multiple strikes and maximum positions are at 18000 CE and 17000 PE.

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 7048 Cr in the cash segment, sold stocks futures worth Rs 4743 Cr and bought index futures worth Rs 764 Cr.

DIIs were net sellers in the cash segment to the tune of Rs 353 Cr during the week.

 

 Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17950-18025; Supports 17750-17660

Banknifty Futures – Resistances 40750-41000; Supports 40250-39800

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