Daily Market Update- Equity 18 Oct 2022 | Globe Capital
18-Oct-2022
Daily Market Update- Equity 18 Oct 2022

Nifty index settled at 17311.80 levels after adding 126 points to its previous closing velue.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 1.86 to 3.43%
  • European equity markets were up by 0.9 to 0.7%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is up 143 points (as on 8:19 AM)

 

News highlights from across the globe

  • Stocks in Asia recovered after Monday’s slide following an uptick in the S&P 500 closed, which closed above a key technical level. The UK’s decision to reverse more of its unfunded tax cuts also aided global market sentiment.
  • A gauge of the Asia’s equities rose, aided by surge in technology stocks in Hong Kong. Chinese electric-vehicle maker BYD Co.’s shares added over 6% on an expected surge in third-quarter profit.
  • China’s decision to delay the publication of key economic data including third-quarter gross domestic product may inject a note of caution to trading in the region.

 

Important news updates from the domestic front

  • Shriram Transport Finance: The company opened the offer to buy back senior notes maturing in 2023 worth up to $500 million (Rs 4,106.28 crore), issued under its global medium-term note programme.
  • Aster DM Healthcare: Aster Pharmacies Group LLC, a material subsidiary of the company, entered into a joint venture agreement with Abdulmohsen Al Hokair Holding Group to establish, manage and operate pharmacy chain across the Kingdom of Saudi Arabia.
  • KSB: The company bagged an approval for sale of intellectual property rights/drawings of Bharat Pumps and Compressors Ltd., Naini, Prayagraj.
  • Ashiana Housing: The company acquired a piece of additional land admeasuring 2.26 acres on perpetual basis from Mahindra Lifespaces within the township of Mahindra World City at Chennai, taking the total land acquired by the company in the city to 17.90 acres.
  • SJVN: SJVN Green Energy Ltd., wholly owned subsidiary of the company, signed an MoU with Assam Power Distribution Company Ltd. for developing 1,000 MW floating solar power projects in Assam by incorporating a joint venture company.
  • Adani Transmission: Provisional operational update Q2 (YoY)Electricity units sold increased 13% to 2,233 million units on back of uptick in energy demand, supply reliability of more than 99.9, distribution loss bridged to 6%, operated transmission lines upwards of 99.76%.

 

Nifty Outlook

Nifty index settled at 17311.80 levels after adding 126 points to its previous closing value.

Broader markets too performed in line with benchmark, Mid & Small cap index gained 0.7% and 0.45% respectively.

Majority of sector gauges tracked at NSE settled higher, amongst them, Bankex gained maximum, up by 1.5% while Metal index was at the bottom of the tally, down nearly 1%.

Nifty index is well placed on short as well as long term charts indicating bullish bias to persist, going ahead sustenance above 17400 levels is the key for sustainable up move.

 

Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures added around 3% & 2% of open interest respectively as long buildup.

On sectoral front, long buildup was seen among Banking, Cement and Finance stocks whereas some short buildup was seen among Metals, Media and Oil & Gas stocks.

On options front, put writing was seen at multiple strikes along with call addition at 17300 strike and maximum positions are at 17300 CE and 17000 PE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 372 Cr in the cash segment, bought stocks futures worth Rs 2290 Cr and bought index futures worth Rs 416 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1582 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17400-17500; Supports 17200-17100

Banknifty Futures – Resistances 40400-40650; Supports 39750-39450

 

Earnings Today – TATACOMM, ICICIGI, POLYCAB, TV18BRDCST, KPITTECH, GMDC, LTTS among others

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