Daily Market Update- Equity 18 Aug 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 18 Aug 2022

Nifty index extended gains on Wednesday as well, closed shop near the day’s top at 17944 levels, up 119 levels.

Overview and Outlook

Global Market update

  • US equity markets settled lower by 0.50% to 1.25%
  • European equity markets ended in red by 0.27% to over 2%
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is down by 30 points (as on 8:30 AM)


News Highlights from across the globe

  • Asian equities and US futures declined as investors digested uncertainty in the Chinese economy.
  • The US Federal Reserve minutes hinted at the need for delicate balancing act to tackle inflation while reducing the chances of a recession, simultaneously.


Important news & Earnings Updates from the domestic front

  • Sona BLW Precision Forgings: Blackstone to sell 10.87% stake in Sona BLW Precision Forgings in block trade. Upsize option of 1.58 crore shares representing 2.72% stake. Floor price set at Rs 500 apiece, a 7.3% discount on Wednesday’s closing price. The total deal would fetch Blackstone Rs 3,971.7 crore
  • ONGC: The company has signed Heads of Agreement with ExxonMobil for deep water exploration in Krishna Godavari and Cauvery Basins in the eastern offshore and the Kutch-Mumbai region in the western offshore.
  • Natco Pharma: The company received tentative approval from the U.S. FDA for Trabectedin for Injection (generic for Yondelis) for the 1mg/vial presentation.
  • GAIL India: Approves raising up to Rs 25,000 crore through rupee borrowing and up to $313 crore in foreign currency.
  • Reliance Industries: Jio adds net 4.22 million mobile subscribers in June; Bharti Airtel: Adds net 7,93,132 mobile subscribers in June; Vodafone Idea: Loses net 1.8 million mobile subscribers in June: TRAI


Nifty Outlook

Nifty index extended gains on Wednesday as well, closed shop near the day’s top at 17944 levels, up 119 levels.

Broader markets performed in line with benchmark, Mid & Small cap index gained 0.6% and 0.49% respectively, leading to strong market breadth.

Barring Auto, all sector gauges tracked at NSE settled in green. PSU bank index gained maximum, up 2.26%, followed by Media, Metal & Financial Service index as they were up over 1% each.

Nifty index has posted good returns in past and is now trading close to its resistance zone of 18000-mark, hence, we advice caution around that zone.


Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures added around 5% & 6% of open interest respectively as long buildup.

All F&O sectors settled higher. Amongst them, Media, Capital Goods and Banking stocks witnessed maximum addition of long positions.

On oprtions front, put writing was seen at multiple strikes and maximum positions are at 17800 PE and 18000 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 2347 Cr in the cash segment, sold stocks futures worth Rs 1030 Cr and also bought index futures worth Rs 7 Cr. DIIs were net sellers in the cash segment to the tune of Rs 510 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18050-18175; Supports 17875-17780

Banknifty Futures – Resistances 39800-40000; Supports 39250-39000


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