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

Disclosure

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.

Open Account