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

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.