Daily Market Update- Equity 13 July 2022 | Globe Capital
13-Jul-2022
Daily Market Update- Equity 13 July 2022

Steep selloff witnessed in the latter half of the session led Nifty index close 157 points lower at 16058 levels.

Overview and Outlook

Global Market update

  • US equity markets ended lower by 0.6 to 0.95%
  • European equity markets edged higher by 0.18 to 0.8%
  • Asian equity markets are trading mix
  • SGX Nifty is up 54 points (as on 8:12 AM)

 

News Highlights from across the globe

  • The 10-year US Treasury yield witnessed an inversion — dropped as much as 12.4 basis points below the two-year rate, a magnitude last seen in 2007. Such inversions are one of the most widely watched signals of recession risk.
  • Shares in the Asia-Pacific were mixed on Wednesday ahead of China trade data and central bank decisions in the region. Investors will also be looking ahead to the US inflation report for June.
  • Oil fell below $100 a barrel while the dollar is at a 28-month high. The euro remains in sight of parity with the greenback for the first time in two decades.

 

Important news & Earnings Updates from the domestic front

 

  • India’s industrial growth, as per the Index of Industrial Production (IIP), surged to 19.6 percent in May from 7.1 percent in April, data released on July 12 by the Ministry of Statistics and Programme Implementation showed.
  • India’s headline retail inflation rate, as measured by the Consumer Price Index (CPI), was largely unchanged at 7.01 percent in June from 7.04 percent in May, data released on July 12 by the Ministry of Statistics and Programme Implementation showed.
  • Deepak Nitrite: The company’s Nandesari plant, which had caught fire last month, has restarted operations–except the Nitrite section of the facility–following approvals from Gujarat authorities.
  • Mahanagar Gas: The company has raised CNG prices by Rs 4/kg to Rs 80/kg in Mumbai and of domestic PNG by Rs 3/SCM to Rs 48.50/SCM, Bloomberg reported citing an emailed statement.
  • City Union Health: The bank has signed a bancassurance agreement with Bajaj Allianz Life Insurance for distribution of its products through its branch network.
  • Max Ventures & Industries: The company has received no objection letter from BSE and National Stock Exchange of India for its merger with Max Estates.
  • Care Ratings: The company will consider a proposal for buyback of shares on July 20.
  • Shilpa Medicare: The company’s newly commissioned facility for manufacture and testing of orodispersible films and transdermal systems situated at Dabaspet, Bengaluru has been issued GMP certificate by UK MHRA.

 

Nifty Outlook

Steep selloff witnessed in the latter half of the session led Nifty index close 157 points lower at 16058 levels.

Broader markets performed in line with benchmark, Mid & Small cap index were down 0.85% and 0.4% respectively. Among index stocks, 44 ended in red while just 6 managed to settle in green, this clearly goes to show the extent of selloff among the large cap stocks.

All major sector gauges tracked at NSE settled in red, Auto, FMCG, Financial Service, IT, Metal index lost over 1% each while Realty index ended on a flattish note.

Decisive fall and sustenance below 16000 levels could lead to an extension in the sell-off and can take the benchmark index towards 15800/650 zone shortly.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 2% of open interest as short positions whereas Banknifty futures shed around 8.5% of open interest as long unwinding.

On sectoral front, short buildup was seen among Chemicals, Metals and IT stocks whereas long buildup was seen among Realty and Telecom stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 15500 PE closely followed by 16000 CE and 16200 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1566 Cr in the cash segment, sold stocks futures worth Rs 560 Cr and also sold index futures worth Rs 525 Cr. DIIs were net buyers in the cash segment to the tune of Rs 141 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 16140-16220; Supports 15900-15800

Banknifty Futures – Resistances 35400-35600; Supports 34900-34600

 

Earnings Today – Mindtree, Tata Metaliks

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