Daily Market Update- Equity 14 Dec 2022 | Globe Capital
14-Dec-2022
Daily Market Update- Equity 14 Dec 2022

Nifty index settled near the day’s top after lackluster trading session as steep buying was witnessed in last hour of trade that helped the benchmark index close shop at 18608 levels, up 110 points.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.3% to over 1%
  • European equity markets were up in range 0.7 to 1.42%
  • Asian equity markets are trading in green
  • SGX Nifty is up 115 points (as on 8:13 AM)

 

News highlights from across the globe

  • US stocks rose on Tuesday after an unexpectedly small consumer price increase buoyed optimism that the Federal Reserve could soon dial back its inflation-taming interest rate hikes, but concerns remained the central back could stay aggressive.
  • Crude rose 3.6% amid moderation in U.S. inflation and demand returning with China reopening. Gold futures rose 1.4%.

 

Important news updates from the domestic front

  • One97 Communications: The company will buy back up to 1.05 crore shares for up to Rs 850 crore at a maximum Rs 810 apiece.
  • HDFC/HDFC Bank: The NBFC received in-principle approval from BSE and National Stock Exchange for transfer of non-convertible debentures to HDFC Bank under the merger deal between the two lenders.
  • Yes Bank: The board approved allotment of 361.61 crore equity shares and 255.97 crore warrants to Carlyle Group’s CA Basque Investments and Advent-controlled Verventa Holdings.
  • Bank of Baroda: The bank will divest its 98.57% shareholding in Nainital Bank.
  • UltraTech Cement: The company commissioned 1.9 MTPA greenfield clinker backed grinding capacity at Pali Cement Works, Rajasthan.
  • Adani Transmission: The company incorporated a wholly owned subsidiary Adani Cooling Solutions to carry on district cooling system business.
  • TVS Motor Company: The company is planning to launch five Euro-5 compliant two-wheelers in Turkey.
  • Piramal Enterprises: The company’s subsidiary Piramal Capital & Housing Finance acquired 100% stake in step down subsidiary PRL Agastya.
  • Bayer CropScience: The operations at the company’s crop protection formulations plant in Himmatnagar, Gujarat have been discontinued on directions from Gujarat Pollution Control Board.
  • Axis Bank: The board has approved raising Rs 12,000 crore via allotment of non-convertible bonds at a coupon rate of 7.88% on a private placement basis.

 

Nifty Outlook

Nifty index settled near the day’s top after lackluster trading session as steep buying was witnessed in last hour of trade that helped the benchmark index close shop at 18608 levels, up 110 points.

Broader market performance was in line with benchmark as Mid & Small cap index gained 0.4% each leading to positive market breadth.

Sector performance was mix, PSU Bank index gained maximum, up 3.8%, IT index also performed quite well, up 1.10% while Realty index was at the bottom of the tally, down 0.8%.

Nifty index is well placed on charts, indicating up side move to continue ahead as well. US Fed will declare its rates decision today after market hours hence, its impact will be witnessed in the opening move of the next trading session.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 1% of open interest as short covering whereas Banknifty future added around 6% of open interest as long positions.

On the sectoral front, long buildup was seen among Chemicals, Capital Goods and Infra stocks whereas some short buildup was seen among Pharma and Oil & Gas stocks.

On options front, put writing was seen at multiple strikes along with call buying (unwinding by writers) at 18600 strikes and maximum positions are at 19000 CE closely followed by 18600 CE and 18600 PE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 620 Cr in the cash segment, sold stocks futures worth Rs 1674 Cr and bought index futures worth Rs 557 Cr. DIIs were net buyers in the cash segment to the tune of Rs 37 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18775-18850; Supports 18650-18570

Banknifty Futures – Resistances 44250-44500; Supports 43900-43700

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