Daily Market Update- Equity 16 Aug 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 16 Aug 2022

Nifty index ended flat after lackluster trading session, where neither bulls nor bears were able to drive market in their direction.

Overview and Outlook

Global Market update

  • US equity markets settled in green
  • European equity markets ended on flat to positive note
  • Asian equity markets are trading green
  • SGX Nifty is up 52 points but in value terms it is up nearly 150 points from Friday’s closing levels (as on 8:21 AM)


News Highlights from across the globe

  • Asian equities are set for a cautious open on Tuesday amid rising concerns over economic slowdown, dollar strengthening and slide in commodity costs.
  • US stocks rose on Monday with mega-cap growth shares, extending the market’s recent rally amid investor optimism the Federal Reserve can achieve a soft landing for the economy. Shares of Apple Inc climbed 0.6 percent, while Microsoft Corp rose 0.5 percent and Tesla Inc jumped 3.1 percent.


Important news & Earnings Updates from the domestic front

  • Ambuja Cements: The Competition Commission of India approved Gautam Adani’s the acquisition of Holcim Group’s stake in Ambuja Cements and ACC.
  • Jindal Steel & Power: The company appointed Bimlendra Jha as Managing Director with effect from Aug. 14. Jha will replace Vidya Rattan Sharma after the completion of his term on Aug. 13.
  • HDFC/HDFC Bank: The merger between the two companies received the approval of CCI.
  • Life Insurance Corporation of India: The life insurance major registered an increase of 20.35 percent in total premium income at Rs 98,352 crore in the June FY23 quarter, as against Rs 81,721 crore a year back.
  • Oil and Natural Gas Corporation: ONGC reported a standalone profit of Rs 15,206 crore for the quarter ended June FY23, up 251 percent on-year, driven by strong operating performance and top line growth.
  • Hero MotoCorp: The two-wheeler maker recorded a 71 percent year-on-year increase in profit at Rs 625 crore for the quarter ended June FY23 on a low base.
  • Zee Entertainment Enterprises: The company recorded a 49 percent year-on-year decline in profit at Rs 106.6 crore for the quarter ended June FY23 dented by dismal operating performance and tepid top line growth.
  • Apollo Tyres: The tyre maker clocked a 49 percent year-on-year growth in consolidated profit at Rs 190.7 crore for the quarter ended June FY23 on low base.
  • Wockhardt: The company recorded consolidated loss of Rs 75 crore for the quarter ended June FY23, against loss Rs 7 crore in year-ago period.


Nifty Outlook

Nifty index ended flat after lackluster trading session, where neither bulls nor bears were able to drive market in their direction, eventually closed shop at 17698 levels, up 39 points.

Broader markets performed in line with benchmark, Mid & Small cap index were up 0.43% & 0.25% respectively. Market breadth was also flat i.e. number of advances and declines were almost similar.

Sector performance was mix, Oil & Gas and Metal index outshined peers as they were up by 2.25% and 1.63% respectively while Media, IT & Pharma index underperformed, down over 1% each.

The opening move on Tuesday will reflect two sessions of foreign markets movement as our markets were closed on Monday on account of Independence Day holiday.


Derivatives Overview & Outlook

On Friday, no significant 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, Textile, Power and Finance stocks.

On oprtions front, call writing was seen at multiple strikes along with put writing at multiple strikes and maximum positions are at 17500 PE and 17800 CE.


FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 9318 Cr in the cash segment, bought stocks futures worth Rs 1078 Cr and also bought index futures worth Rs 1104 Cr. DIIs were net sellers in the cash segment to the tune of Rs 2478 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17825-17900; Supports 17640-17550

Banknifty Futures – Resistances 39350-39700; Supports 38800-38450


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