Daily Market Update- Equity 18 July 2022 | Globe Capital
18-Jul-2022
Daily Market Update- Equity 18 July 2022

Nifty index settled at the day's top at 16049 levels, up 110 points after trading in a narrow range in the first half of the session.

Overview and Outlook

Global Market update

  • US equity markets were up in range 1.7 to 2.15%
  • European equity markets also settled in green, up in range 1.6 to 2.76%
  • Asian equity markets are trading in green
  • SGX Nifty is up 151 points (as on 8:40 AM)

 

News Highlights from across the globe

  • US stocks closed sharply higher on Friday, ending several days of sell-offs with a rebound fueled by upbeat earnings, strong economic data and easing fears of a larger-than-expected interest rate hike by the Federal Reserve.
  • The dollar slipped, with a gauge of the greenback’s strength down from a record high. Oil fell as the market digests slowing demand and whether supply will be increased after President Joe Biden’s visit to Saudi Arabia.
  • All three major US stock indices posted solid gains, with financials leading the charge in the wake of Citigroup Inc’s earnings beat. This reversed Thursday’s sell-off driven by downbeat guidance from rivals JPMorgan Chase and Morgan Stanley.

 

Important news & Earnings Updates from the domestic front

 

  • HDFC Bank  clocks 19% growth in Q1 profit, NII grows 14.5% YoY. The country’s largest private sector lender has reported 19% year-on-year growth in standalone profit at Rs 9,196 crore for the quarter ended June 2022 led by a fall in provisions for bad loans.
  • Bharat Electronics Q1 profit surges significantly to Rs 366 crore on strong operating income.
  • L&T Technology Q1 profit grows 27% YoY to Rs 274 crore, wins over $50 million deals.
  • Coforge: To consider proposal for an interim dividend on July 22.
  • KNR Constructions bags road construction project in Telangana. The company has received a Letter of Acceptance for construction of a four lane road from IDA Pashamailaram Industrial Park to ORR in Sangareddy district, Telangana. The order is worth Rs 34.26 crore. The construction period for the project is 18 months.
  • Tata Steel: Tata Steel Netherlands has agreed to reduce its carbon dioxide emissions by 5 megatons by 2030. The company also promised to be “climate neutral” by 2045.
  • Coal India, Adani Enterprises: India’s largest miner has cancelled its maiden tender for short-term coal imports in which Adani Enterprises had emerged as L1 bidder, according to The Financial Express.

 

Nifty Outlook

Nifty index settled at the day’s top at 16049 levels, up 110 points after trading in a narrow range in the first half of the session.

Broader markets performance was mix, Mid cap index settled higher by 0.77% while Small cap index ended on flattish note, up 0.34%.

Majority of sectoral gauges tracked at NSE settled in green, Auto, FMCG, Consumer Durables index gained maximum, up in range 1.4 to 2% while Metal index was at the bottom of the tally, down 0.8%.

Nifty index has once again entered trading range (15600-16250) in which it was stuck earlier as well, strong breakout and sustenance above these levels is a must for next sustainable up move.

 

Derivatives Overview & Outlook

On Friday, Nifty futures shed around 1% of open interest as short covering whereas Banknifty futures remained almost unchanged on the price front and added around 2% of open interest.

On sectoral front, long buildup was seen among Auto, Capital Goods and Pharma stocks whereas some short buildup was seen among Metal stocks.

On options front, put writing was seen at multiple strikes along with call writing at 16600 strike and maximum positions are at 16000 PE and 16600 CE.

 

FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 5105 Cr in the cash segment, sold stocks futures worth Rs 1785 Cr and also sold index futures worth Rs 3833 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2146 Cr during the week.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 16150-16250; Supports 15950-15850

Banknifty Futures – Resistances 35100-35350; Supports 34500-34300

Earnings Today

HeidelbergCement India, Nelco, Bank of Maharashtra, Bhansali Engineering Polymers, Alok Industries, Ganesh Housing Corporation, Onward Technologies, Sudal Industries, and Tanfac Industries will be in focus ahead of quarterly earnings on July 18.

 

 

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