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

Post gap up opening, Nifty index failed to build and traded sideways for rest of the day, finally closed shop at 18070 levels, up 133 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets were down in rnage 3.9 to 5.16%
  • European equity markets were down over 1%
  • Asian equity markets are trading in red
  • SGX Nifty is trading down over 300 points (as on 8:07 AM)

 

News highlights from across the globe

  • US consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare, giving the Federal Reserve ammunition to deliver a third 75 basis points interest rate hike next Wednesday.
  • All three major US stock indices veered sharply lower, snapping four-day winning streaks and notching their biggest one-day percentage drops since June 2020 in throes of the Covid-19 pandemic.

 

Important news updates from the domestic front

  • Infosys: The Bengaluru-based IT firm, along with Palo Alto Networks, has struck a digital transformation deal with Belgium Post.
  • Bharat Forge: Kalyani Powertrain and Harbinger Motors have set up a joint venture to manufacture electric powertrains for medium-duty commercial vehicles.
  • JSW Steel: The company has signed a memorandum of understanding with Germany’s SMS Group for decarbonisation projects at various JSW Steel plants in India.
  • Ambuja Cements: The company will consider a proposal for raising of funds by way of issue of equity shares or any other means on Sept. 16.
  • Bajaj Holdings: The company has approved an interim dividend of Rs 110 per share of face value of Rs 10 each.
  • Tata Steel/Tata Power: Tata Steel and Tata Power Renewables are planning to raise as much as Rs 1,200 crore and Rs 1,000 crore via bonds, Bloomberg reported.

 

Nifty Outlook

Post gap up opening, Nifty index failed to build and traded sideways for rest of the day, finally closed shop at 18070 levels, up 133 points from its previous closing value.

Broader markets performed in line with benchmark, Mid & Small cap index ended on flattish note.

Majority of sector gauges tracked at NSE settled in green, Metal index gained maximum, up 1.28% followed by Financial Service & Consumer Durable index that gained nearly 1% each.

SGX Nifty is indicating steep gap down opening today. Benchmark Nifty index is likely to open around 17775 which is quite close to it support zone. It will be vital to see how it trades post opening, then only we will have a clue as to which side it would move.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 1.5% of open interest as short covering whereas Banknifty futures added around 4% of open interest as long buildup.

On the sectoral front, long buildup was seen among Capital Goods, Media, Textile and Telecom stocks whereas short covering was seen among Banking and FMCG stocks.

On options front, put writing was seen at 18000 strikes and maximum positions are at 18500 CE and 18000 CE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 1957 Cr in the cash segment, sold stocks futures worth Rs 1245 Cr and bought index futures worth Rs 2936 Cr.

On the other hand, DIIs were net sellers in the cash segment to the tune of Rs 1268 Cr.

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