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

Steep sell-off witnessed in the final hour of trading led Nifty index to settle at 18414 levels, down 245 points.

Overview and Outlook

Global Market Update

  • US equity markets were down by 2.2% to 3.23%
  • European equity markets ended lower by 0.9 to 3.28%
  • Asian equity markets are trading in red
  • SGX Nifty is down 56 points (as on 8:18 AM)


News highlights from across the globe

  • Shares fell in Asia on Friday, while futures in Hong Kong pointed to a decline. The S&P 500 closed at its lowest level in more than a month as investors sought haven assets after warnings by the Federal Reserve and the European Central Bank of more pain to come.
  • Oil was little changed after a drop on Thursday as renewed fears of a global slowdown offset hopes that China’s easing of Covid-19 restrictions would help boost demand.


Important news updates from the domestic front

  • Reliance Industries: Reliance Consumer Products launched FMCG brand ‘Independence’ in Gujarat to cater to demand in categories like edible oil, staples, processed foods, beverages and other daily essentials. Reliance Digital Health, another subsidiary of the company, signed a deal to acquire 2.25% stake in New York-based Synchron.
  • Wipro: The company signed deals with a five-year, multi-million-dollar deal with Mazda Motor Logistics Europe to help industrialise Mazda IT, digitise processes, and enable agile DevOps. It signed another deal with fintech player Finastra to deploy its trade finance solutions in Middle East.
  • Deepak Fertilisers and Petrochemicals Corporation: The board approved a composite scheme of arrangement to restructure the company’s mining chemical and fertiliser businesses.
  • Hindustan Petroleum Corporation: The company will raise Rs 10,000 crore debt via non-convertible debentures, bonds or notes.
  • HDFC Asset Management Company: Life Insurance Corporation of India increased its stake in the company to 9.053% from 7.024%.
  • Shriram Transport Finance: The board will meet on Dec. 24 to consider the proposal for a dividend.
  • SJVN: Subsidiary SJVN Green Energy achieved financial closure of its 1,000 MW solar power project at Bikaner, Rajasthan.
  • IRCTC: The offer for sale by the company was oversubscribed 3.08 times on the first day. It will open on Dec. 16 for retail investors.


Nifty Outlook

Steep sell-off witnessed in the final hour of trading led Nifty index settled at 18414 levels, down 245 points.

Broader markets outperformed benchmark as Mid & Small cap index were down 0.97% and 0.57% against 1.32% sell-off in the benchmark index.

All sector gauges tracked at NSE settled in red, IT & Media index lost maximum, down over 2% each.

Nifty index has settled just above its supports i.e. 18400 mark, any decisive fall below the level will open the gates for further selloff towards 18200 and lower levels in the immediate near term.


Derivatives Overview & Outlook

Yesterday, Nifty futures added around 4% of open interest as short buildup whereas Banknifty futures shed around 7% of open interest as long unwinding.

All F&O sectors settled lower. Amongst them, Infra, Textile and Pharma stocks witnessed maximum addition of short positions whereas some long unwinding was seen among Auto, Cement and Capital Goods stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 18400 PE and 18600 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 711 Cr in the cash segment, sold stocks futures worth Rs 1970 Cr and also sold index futures worth Rs 1935 Cr. DIIs were net buyers in the cash segment to the tune of Rs 261 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18580-18660; Supports 18360-18250

Banknifty Futures – Resistances 43750-44000; Supports 43275-43000


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