Daily Market Update- Equity 19 Aug 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 19 Aug 2022

Benchmark Nifty index settled on a flattish note after a volatile trading session.

Overview and Outlook

Global Market update

  • US equity markets settled on flat to positive note
  • European equity markets settled higher by 0.35% to 0.52%
  • Asian equity markets are trading mix
  • SGX Nifty is down by 45 points


News Highlights from across the globe

  • MSCI Inc.’s Asia-Pacific share index shed less than 0.5%. Moves across Japan, China and Hong Kong were fairly muted.
  • S&P 500, Nasdaq 100 and European futures slipped after Wall Street shares posted a small gain on Thursday.


Important news & Earnings Updates from the domestic front

  • RIL/ONGC/Other Oil Stocks: The government hiked windfall profit tax on diesel to Rs 7 per litre from Rs 5. It also brought Rs 2 per litre tax on ATF exports after scrapping it in the last review. Tax on domestically produced crude oil cut to Rs 13,000 per ton from Rs 17,750.
  • IEX/NTPC/PFC/REC/Other Power stocks: Power System Operation Corporation has asked three power exchanges — IEX, PXIL and HPX — to restrict electricity trading by 27 discoms in 13 states having outstanding dues towards gencos, PTI reported.
  • Wipro: The company has been awarded a multi-year contract to deliver Service Integration and Management services to HM Treasury.
  • Adani Total Gas: The company reduced prices of PNG and CNG upto Rs 3.2 per SMC and Rs 4.7 per Kg respectively.
  • Metropolis Healthcare: The company’s Chief Executive Officer Vijender Singh has resigned and Nov. 30 will be his last working day.


Nifty Outlook

Benchmark Nifty index settled on a flattish note after a volatile trading session.

Broader markets too performed inline with benchmark as Mid and Small Cap index settled on flat to positive note.

Performance on the sectoral front was mix. Realty index was at the top of the tally, gained 1.55% followed by Metal index that was up nearly 1% while Nifty IT was at the bottom of the tally, down 0.79%.

Nifty index is well placed on multiple chart frames. Crossover and sustenance above 18000 will open the gates for further upmove towards 18200 and higher levels in near term. Hence, we uphold our bullish view on Nifty index and suggest maintaining buy on dips trading strategy till it is holding above 17700 levels.


Derivatives Overview & Outlook

Yesterday, Nifty futures remained almost unchanged on the price front and added around 3% of open interest whereas Banknifty futures shed around 4% of open interest as short covering.

On sectoral front, long buildup was seen among Realty and Capital Goods stocks whereas short buildup was seen among IT and Power stocks.

On oprtions front, Nifty will start the last contract of Aug series with maximum positions are at 17900 PE and 18000 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1706 Cr in the cash segment, sold stocks futures worth Rs 1431 Cr and also sold index futures worth Rs 1652 Cr. DIIs were net buyers in the cash segment to the tune of Rs 471 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18080-18175; Supports 17920-17850

Banknifty Futures – Resistances 40000-40250; Supports 39450-39250


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.