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

Tracking global cues, Nifty index opened on a weak note, kept drifting lower throughout the day to settle at 17530 levels, down 346 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.45 to 0.9%
  • European equity markets too ended lower in range 0.6 to 1.66%
  • Asian equity markets are also trading in red
  • SGX Nifty is almost unchanged (as on 8:20 AM)


News highlights from across the globe

  • US stocks ended in the red on Friday, falling to two-month lows as a warning of impending global slowdown from FedEx hastened investors’ flight to safety at the conclusion of a tumultuous week.
  • Investors will keenly track the upcoming U.S. Federal Reserve monetary policy meeting, with another aggressive rate hike expected.


Important news updates from the domestic front

  • ACC/Adani Enterprises/Ambuja Cements: Adani Enterprises has completed the acquisition of ACC and Ambuja Cements Ltd. and reconstituted their boards, with billionaire Gautam Adani’s son — Karan Adani — at the helm. Ambuja Cements also plans to raise Rs 20,000 crore via convertible debentures.
  • ONGC/Reliance Industries/Vedanta: India has reduced windfall tax on domestically produced crude oil as well as cut export duty on diesel and aviation turbine fuel.
  • HDFC Life Insurance: National Company Law Tribunal has sanctioned the scheme of amalgamation between Exide Life Insurance and HDFC Life Insurance.
  • Maruti Suzuki: India’s largest carmaker has recalled 5,002 units of its Super Carry LCV to fix potential issues with a bolt attached to seat belt buckle bracket of co-driver seat.
  • Zomato: Blinkit has partnered with Indian Apple reseller Unicorn for quick deliveries of Apple iPhones and accessories. The service will be available in Delhi and Mumbai for now.
  • Mahindra & Mahindra: Ontario Teachers’, one of the world’s largest pension plans, will acquire a 30% stake in Mahindra Susten at an equity value of Rs 2,371 crore.


Nifty Outlook

Tracking global cues, Nifty index opened on a weak note, kept drifting lower throughout the day to settle at 17530 levels, down 346 points from its previous closing value.

Broader markets too performed in line with benchmark as Mid & Small cap index were down 2.9% & 2.56% respectively, leading to extremely weak market breadth.

All sector gauges tracked at NSE settled in red, Media index lost maximum, down over 4% followed by IT & Realty index that fell 3.7% each.

Nifty index has fallen below 17500-levels in day trade which, this is an important support level, sustenance below the same will open the gates for a further selloff towards 17350 levels in the immediate near term.


Derivatives Overview & Outlook

On Friday, both Nifty & Banknifty futures added around 5% & 8% of open interest respectively as short buildup.

All F&O sectors settled lower. Amongst them, Cement, Media and Realty stocks witnessed maximum addition of short positions whereas most of the sectors ended lower on long unwinding.

On options front, call writing was seen at multiple strikes along with put addition at 17500 strikes and maximum positions are at 17000 PE followed by 17500 PE and 19000 CE followed by 18000 CE.


FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 956 Cr in cash segment, sold stocks futures worth Rs 10339 Cr and bought index futures worth Rs 1729 Cr. DIIs were net sellers in the cash segment to the tune of Rs 2937 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17680-17800; Supports 17440-17350

Banknifty Futures – Resistances 41200-41550; Supports 40550-40250


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