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

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