Daily Market Update- Equity 17 Oct 2022 | Globe Capital
17-Oct-2022
Daily Market Update- Equity 17 Oct 2022

Tracking positive cues from the global peers, benchmark Nifty index opened with a big gap on the higher side, failed to hold at the higher levels and settled at 17185 levels, up 171 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 1.3 to 3.08%
  • European equity markets were up by 0.12 to 0.9%
  • Asian equity markets are trading in red
  • SGX Nifty is down 124 points (as on 8:31 AM)

 

News highlights from across the globe

  • Asian equities fell and major currencies appreciated against the dollar in a cautious open to the week after further weakness on Wall Street and a defiant message to the world from China’s Communist Party congress.
  • Chinese President Xi Jinping said the country’s global power had increased while warning of “dangerous storms” ahead. There were few signs of any let up in the Covid-Zero campaign or housing market policies that are weighing on the economy. Xi also said China would prevail in its fight to develop strategically important technology amid rising tension with the US.

 

Important news updates from the domestic front

  • Axis Bank: Irdai has imposed Rs 3 crore penalty on Max Life Insurance Company for certain violations in a case pertaining to purchase and sale of shares by the Axis Bank and group companies, and a Rs 2 crore penalty on Axis Bank, a corporate agent of the insurer.
  • Tata Power: The company suffered a cyberattack on its IT infrastructure, impacting some of its systems. The company has taken steps to retrieve and restore the systems and all critical operational systems are functioning.
  • Tata Steel: Tata Steel said it is actively engaged with the U.K. government for financial support for its business there, amid reports of that the company is looking to divest their steel business in the country, PTI reported.
  • Adani Ports and Special Economic Zone: Adani Agri Logistics, a wholly-owned subsidiary of Adani Logistics, has received a letter of award from the Food Corporation of India, to develop and operate silo complexes at Kanpur, Gonda and Sandila in Uttar Pradesh and Katihar in Bihar.
  • Bharat Petroleum Corporation: The company has aimed to convert its 7,000 conventional retail outlets into energy stations providing multiple fueling options including EV charging facility.
  • Authum Investment & Infrastructure: The company acquired debt-ridden Reliance Commercial Finance, a wholly owned subsidiary of Reliance Capital, for Rs 1 crore.
  • State Bank of India: The bank has hiked MCLR by 25 basis points across tenors. The revised rates will come into effect from Oct. 15, 2022.
  • Zee Entertainment Enterprises: Shareholders of Zee Entertainment approved the proposed merger of the company with Sony. The proposed merger has already received approval from the stock exchanges and the Competition Commission of India.
  • Ujjivan Small Finance Bank/Ujjivan Financial Services: The boards of the two companies approved the merger of Ujjivan Financial Services into and with Ujjivan Small Finance Bank.
  • HDFC: NCLT has ordered the company to hold shareholders meeting on Nov. 25, 2022, to approve the merger deals of wholly owned subsidiaries HDFC Investments and HDFC Holdings with and into the company, and HDFC with and into HDFC Bank.
  • L&T Finance Holdings: Market regulator SEBI approved sale of L&T Investment Management and L&T Mutual Fund to HSBC Mutual Fund.
  • IRB Infrastructure Developers: The company will transfer Vadodara Kim Expressway Project to an InvIT arm, following which, it will receive Rs 342 crore as against sponsor contribution and debt of Rs 955 crore will reduce from its consolidated debt.

 

Nifty Outlook

Tracking positive cues from the global peers, benchmark Nifty index opened with a big gap on the higher side, failed to hold at the higher levels and settled at 17185 levels, up 171 points from its previous closing values.

Broader markets underperformed the benchmark as Mid and Small cap index settled on a flattish note. Resultant, market breadth was flat.

Majority of sectoral gauges, tracked at NSE, settled higher. Nifty Fin Service and bank Nifty index were at the top of the table, gained nearly 2% each while Realty and Media index were at the bottom of tally down nearly 1% each.

Going ahead, Nifty index is likely to trade in a sideways manner (17000-17300 range) before witnessing next directional move.

 

Derivatives Overview & Outlook

On Friday, Nifty futures shed around 7% of open interest as short covering whereas Banknifty futures remained almost unchanged on open interest front.

On sectoral front, long buildup was seen among Chemicals and Oil & Gas stocks whereas some short buildup was seen among Auto and Cement stocks.

On options front, put writing was seen at 17200 PE along with call addition at multiple strike and maximum positions are at 18000 CE followed by 17500 CE and 16500 PE.

 

FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 7001 Cr in the cash segment, sold stocks futures worth Rs 87 Cr and bought index futures worth Rs 197 Cr. DIIs were net buyers in the cash segment to the tune of Rs 7030 Cr during the week.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17300-17365; Supports 17100-17000

Banknifty Futures – Resistances 39650-39800; Supports 39150-38800

 

Earnings Today – PVR, Tata Metaliks, Tata Coffee, Spandana Sphoorty Financial, Oriental Hotels, Maharashtra Seamless, Bank of Maharashtra, IRB InvIT, Heidelberg Cement, Craftsman Automation, Choice International, Can Fin Homes, ACC

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