Daily Market Update- Equity 16 Sep 2022 | Globe Capital
16-Sep-2022
Daily Market Update- Equity 16 Sep 2022

Benchmark Nifty index ended lower at 17872 levels, down 133 points from its previous closing values, in an otherwise lackluster trading session on weekly expiry day.

Overview and Outlook

Global Market Update

  • US equity markets lower in range 0.5 to 1.4%
  • European equity markets too ended lower barring FTSE that ended flat
  • Asian equity markets are trading in red
  • SGX Nifty is down over 100 points (as on 8:21 AM)

 

News highlights from across the globe

  • Asian stocks headed for a fifth week of declines following more weakness in US equities and a surge in short-end Treasury yields that reflects expectations for outsized Federal Reserve interest rate hikes.
  • The latest US economic data painted a mixed picture for the economy that backed the view for hawkish monetary policy. Oil headed for a third weekly loss as a deteriorating global economic backdrop stoked demand concerns and a buoyant dollar made crude more expensive for most buyers.

 

Important news updates from the domestic front

  • UPL: The company has acquired 26% stake in Clean Max Kratos Pvt. that will develop and maintain a hybrid 28.05 MW of solar and 33.00 MW of wind power project. UPL will further invest Rs 39.6 crore in Clean Max Kratos.
  • Vedanta: The company clarified that the proposed semiconductors business will be undertaken by its ultimate holding company – Volcan Investments.
  • State Bank of India: The bank has clarified that it has not been identified as a nodal bank for handling Russia-related transactions. SBI noted that RBI has authorised all the banks in India to open Special Rupee Vostro account to promote invoicing in Indian Rupee. Accordingly, the bank is making necessary arrangements and processing requests received from various banks, including Russian banks, as per RBI guidelines and its own policies and procedures.
  • Tata Power: Tata Power Solar Systems, wholly owned subsidiary of Tata Power Renewable Energy Limited received the Letter of Award of Rs 612 crore for setting up a 100 MW ground- mounted solar project for SJVN.
  • Adani Ports & SEZ: The company has signed a concession agreement with Syama Prasad Mookerjee Port to develop berth no. 2 at Haldia Dock Complex in West Bengal for an estimated cost of Rs 298 crore. It will design, build, finance, operate, maintain, and manage the bulk terminal with capacity of 3.74 million tons per annum for a concession period of 30 years.
  • Escorts Kubota: The company’s board has approved the scheme of amalgamation for merging Escorts Kubota India and Kubota Agricultural Machinery India into and with Escorts Kubota. The board has also granted in-principal approval for purchase of rough terrain crane business, and sale of shares of Tadano Escorts India to Japan-based Tadano.
  • Amara Raja Batteries: High Court of Andhra Pradesh has extended the interim suspension order of closure orders by Andhra Pradesh Pollution Control Board for the company’s plants situated at Karakambadi, Tirupati and Nunegundlapalli in Andhra Pradesh until further orders.
  • Bharti Airtel: Adds net 5.13 lakh mobile subscribers in July, according to TRAI data. Reliance Industries: Jio adds 29.5 lakh mobile subscribers in July, according to TRAI data. Vodafone Idea: Loses 15.4 lakh mobile subscribers in July, according to TRAI data.

 

Nifty Outlook

Benchmark Nifty index ended lower at 17872 levels, down 133 points from its previous closing values, in an otherwise lackluster trading session on weekly expiry day.

Broader markets outperformed the benchmark as Mid cap index rose 0.43% while Small cap index settled on a flattish note. Resultant, market breadth was tilted towards the advancing side.

Majority of sectoral gauges tracked at NSE settled in red. Nifty Media was at the bottom of the tally, down over 2% followed by IT and Pharma index that were down 1.43% & 1.29% respectively. On the other hand, Nifty Energy and Auto were the top gainers, rose nearly 1% each.

Going ahead, we reiterate our bullish view on Nifty index till it is holding above 17750 levels. Crossover and sustenance above 18100 levels will be positive development that will take it towards 18400 levels in immediate near term.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty futures on open interest front whereas Banknifty futures shed around 6% of open interest as long unwinding.

On sectoral front, long buildup was seen among Auto and Infra stocks whereas some short buildup was seen among Media and IT stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 17800 PE and 18700 CE followed by 18000 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1271 Cr in the cash segment, sold stocks futures worth Rs 3452 Cr and also sold index futures worth Rs 944 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 929 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18000-18125; Supports 17800-17690

Banknifty Futures – Resistances 41600-41875; Supports 41100-40800

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