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

Benchmark Nifty index settled lower at 18269 levels after a cut of 146 points front its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were down by over 1% on Friday
  • European equity markets too ended lower in range 0.67 to 1.2%
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is up 56 points (as on 8:16 AM)


News highlights from across the globe

  • Asian stocks followed Wall Street lower Monday as the Federal Reserve’s resolve to keep raising rates and a wave of Covid in Beijing damped sentiment for riskier assets.
  • The U.S. markets are witnessing a selloff after the hawkish commentary by the Fed even as it slowed the pace of rate hikes amid signs of easing U.S. inflation. The European Central Bank and Bank of England also maintained a similar stance while increasing rates last week.

Important news updates from the domestic front


  • Yes Bank: The private lender has concluded assignment of Rs 48,000 crore worth of stressed assets to JC Flowers Asset Reconstruction Co.
  • Sun Pharmaceuticals: The company received warning letter from USFDA for the Halol facility, which is under import alert by the regulator, summarising violations with respect to Current Good Manufacturing Practice regulations.
  • GMR Airports Infrastructure: GMR Airports International BV, a stepdown subsidiary of the company,  received Rs 1,389.90 crore against the sale of shares in GMR Megawide Cebu Airport Corporation and the issuance of exchangeable notes to Aboitiz InfraCapital Inc.
  • Tata Motors / Drreddy: The company’s stock will be included in the S&P BSE Sensex Index from today. Dr Reddy’s will be dropped from the index. Also, Bengaluru Metropolitan Transport Corporation signed a definitive agreement with the Tata Motors’ subsidiary TML Smart City Mobility Solutions for operating 921 electric buses in Bengaluru.
  • Tech Mahindra: The company will sell 100% stake in subsidiary Dynacommerce Holdings to step down subsidiary Comviva Netherlands BV for €6.6 million.
  • HDFC Bank: The board will meet on Jan. 14 to consider and approve the financial results for quarter ended Dec. 31, 2022.
  • Dilip Buildcon: The company received an new order worth Rs 1,647 crore for four-laning of Karimnagar Warangal Section of NH-563 in Telangana. The company also received an order worth Rs 1,955 crore for construction of four lane Urga-Pathalgaon section of NH-130A under Bharatmala Pariyojana’ in Chhattisgarh.

Nifty Outlook

Benchmark Nifty index settled lower at 18269 levels after a cut of 146 points front its previous closing values.

Performance on the broader front was mix. Mid cap index underperformed the benchmark, down 1.68% while small cap index fell in line with benchmark, fell 0.63%. Market breadth was heavily inclined towards the declining side.

All sectoral indices tracked at NSE settled in red. PSU bank index was at the bottom of the tally, fell nearly 3% followed by Realty, Pharma and IT index that fell over 1% each.

Going ahead, Nifty index is looking weak on charts there is higher probability of continuation of profit taking in coming sessions. On levels front, immediate supports are placed around 18100-18000 levels while immediate resistance is placed around 18425 levels.


Derivatives Overview & Outlook

On Friday, both Nifty futures & Banknifty futures shed around 3% & 7% of open interest respectively as long unwinding.

All F&O sectors settled lower. Amongst them, Pharma, Telecom and Chemical stocks witnessed maximum addition of short positions whereas some long unwinding was seen among Banking, Infra and Realty stocks.

On options front, call writing was seen at multiple strikes along with put addition at 18000 & 18100 strikes and maximum positions are at 18000 PE and 18600 CE closely followed by 18400 CE.


FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 4178 Cr in the cash segment, sold stocks futures worth Rs 3128 Cr and bought index futures worth Rs 842 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3463 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18410-18500; Supports 18250-18150

Banknifty Futures – Resistances 43550-43800; Supports 43100-42850


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