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

Tracking global cues, Nifty index opened with a huge gap on the higher side, finally settled just over 1% higher at 17486 levels, up 175 points.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.9 to 1.12%
  • European equity markets were up by 0.24 to 0.92%
  • Asian equity markets are trading mix
  • SGX Nifty is little changed, up 32 points (as on 8:18 AM)

 

News highlights from across the globe

  • Asian stocks had a mixed open on Wednesday as traders assessed a solid start to the corporate-earnings season that helped extend a rally in US markets.
  • In the US, stocks rallied after earlier giving up almost all of their advance, sending the S&P 500 to back-to-back gains to start the week.

 

Important news updates from the domestic front

  • Bharat Electronics: The company signed an MoU with defence PSU Munitions India to jointly address the requirements of Indian defence and export markets in the areas of ammunition, explosives and related systems.
  • Adani Enterprises: Adani Defence & Aerospace, a subsidiary of the company, signed a definitive agreement to acquire MRO company Air Works for Rs 400 crore.
  • Reliance Industries/Bharti Airtel/Vodafone Idea: Reliance Jio replaced BSNL to become the largest fixed-line operator in the country, the first private player to do so, according to TRAI subscriber data for August. Reliance Jio and Bharti Airtel added new telecom subscribers, whereas Vodafone Idea lost subscribers during the month.
  • ITC: The company entered into an agreement to acquire additional 1,000 compulsorily convertible preference shares of Rs 10 each of Mother Sparsh, taking its shareholding to 22%.
  • Polycab India: The board considered and approved the merger of subsidiary Silvan Innovation Labs with the company.
  • Suven Life Sciences: The board approved the issue opening and closing dates—Oct. 31, 2022 and Nov. 10, 2022, respectively—for the upcoming rights issue of the company.
  • Prestige Estate Projects: The company registered sales of Rs 3,511 crore in Q2, up 66% year-on-year. Collections increased 68% to Rs 2,602.9 crore.

 

Nifty Outlook

Tracking global cues, Nifty index opened with a huge gap on the higher side, finally settled just over 1% higher at 17486 levels, up 175 points.

Broader market performance was mix, Mid cap index outperformed benchmark as it soared 1.6% while Small cap index underperformed, up 0.76%. Market breadth was fairly inclined towards the advancing side.

All sector gauges tracked at NSE settled in green, Banking & Finance pack gained maximum, PSU Bank index outshined, up nearly 4% followed by Media that was up over 2%.

Nifty index has crossed congestion range 17000-17400 on the higher side, going ahead 17500 is a crucial hurdle, once that is taken out 17700-800 can be tested shortly.

 

Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures shed around 8% & 6% of open interest respectively as short covering.

On sectoral front, long buildup was seen among Auto, Capital Goods, Oil & Gas and Telecom stocks whereas some long unwinding was seen among Chemical stocks.

On options front, put writing was seen at multiple strikes along with call addition at 17500 strike and maximum positions are at 17500 CE and 17000 PE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 153 Cr in the cash segment, bought stocks futures worth Rs 595 Cr and also bought index futures worth Rs 2421 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2085 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17600-17700; Supports 17400-17300

Banknifty Futures – Resistances 40650-41000; Supports 40050-39700

 

Earnings Today – HAVELLS, HDFCAMC, INDUSINDBK, NESTLEIND, ULTRACEMCO among others

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