Daily Market Update- Equity 14 Oct 2022 | Globe Capital Market LTD.
14-Oct-2022
Daily Market Update- Equity 14 Oct 2022

Nifty index settled lower at 17014 levels after a cut of more than 100 points from its previous closing value after a highly volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 2.23 to 2.8%
  • European equity markets were up by 0.35 to 1.5%
  • Asian equity markets are also trading in green
  • SGX Nifty is up 353 points (as on 8:31 AM)

 

News highlights from across the globe

  • Asian equities advanced in the wake of a shock rebound in US stocks that roared back from losses sparked by a hot inflation reading.
  • The S&P 500 index defied expectations to rally 2.6% after consumer price data cemented bets for the Federal Reserve to deliver another jumbo rate hike in November.
  • Oil headed for a weekly loss as signs of a global economic slowdown and tighter monetary policy threaten to sap energy consumption. The International Energy Agency earlier warned production cuts agreed by OPEC+ risked causing oil prices to spike and tipping the global economy into recession.

 

Important news updates from the domestic front

 

  • Infosys: The company announced a buyback programme worth Rs 9,300 crore where it will buy 5.03 crore shares at Rs 1,850 apiece, a premium of 30% over Thursday’s closing price.
  • National Highways Infra Trust: The InvIT is looking to raise additional Rs 3,800 crore, out of which Rs 1,500 crore will be raised via non-convertible debentures.
  • Mahanagar Telephone Nigam: Shareholders approved plans to raise Rs 17,571 crore through government-guaranteed debt bonds on private placement basis, and enhanced power of the board to borrow up to Rs 35,000 crore from banks and other financial institutions.
  • Tata Steel Long Products: The company subscribed 4.69 crore shares of its subsidiary Neelachal Ispat Nigam for Rs 300 crore, taking its shareholding to 95.81% from 95.65%. NINL will use the funds for meeting its capital and capex requirements.
  • Karnataka Bank: The board of the bank considered the request of Mahabaleshwara MS, managing director and CEO, not to offer himself for reappointment. He will continue in the office till the completion of his tenure on April 14, 2023.
  • HDFC Life Insurance Company: Insurance regulator Irdai approved the merger of Exide Life Insurance Company into HDFC Life Insurance Company.
  • Ceat: The has subscribed the entire paid-up capital of wholly owned subsidiary Taabi Mobility.

 

Nifty Outlook

 

Nifty index settled lower at 17014 levels after a cut of more than 100 points from its previous closing value after a highly volatile trading session.

Broader markets fell in line with benchmark leading to weak market breadth.

Majority of sectoral gauges, tracked at NSE, settled in red. PSU bank index was at the bottom of tally, down over 1.5% followed by Nifty Bank and Fin Service index that were down over 1% each.

Nifty index is trading just above its 200 EMA on daily charts which is placed at 16900 levels. Breakdown below the same might take it lower toward 16750 and lower levels in immediate near term.

 

Earnings Today – Bajaj Auto, Tata Elxsi, Shree Cement, Federal Bank

 

Derivatives Overview & Outlook

 

Nifty October futures ended at 17,008, a discount of 6.35 points. Nifty October futures added 2.83% and 7,523 shares in Open Interest.

Nifty Bank October futures ended at 38,770, a premium of 146 points. Nifty Bank October futures shed 8.03%, 6,543 shares in Open Interest.

 

Securities in the ban list: Indiabulls Housing Finance, Delta Corp

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1636 Cr in the cash segment, sold stocks futures worth Rs 1001 Cr and also sold index futures worth Rs 558 Cr. DIIs were net buyers in the cash segment to the tune of Rs 753 Cr.

 

 

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.