Daily Market Update- Equity 2 Dec 2022 | Globe Capital
02-Dec-2022
Daily Market Update- Equity 2 Dec 2022

Nifty index settled near the day’s low at 18812 levels, up 54 points from its previous closing point.

Overview and Outlook

Global Market Update

  • US equity markets were mix, Down Jones fell 0.5%
  • European equity markets also ended mix, DAX outshined as it gained 0.65%
  • Asian equity markets are trading in red
  • SGX Nifty is down 54 points (as on 8:21 AM)

 

News highlights from across the globe

  • Stocks edged lower in Asia after US equities struggled for direction, with traders awaiting a jobs report later on Friday for clues on the Federal Reserve’s next policy steps.
  • The Bloomberg Dollar Spot Index steadied after sinking to its lowest since June.
  • Oil fluctuated after four days of gains with China further easing Covid restrictions and the US considering a pause in sales from its strategic reserves.

 

Important news updates from the domestic front

  • Yes Bank: The Reserve Bank of India allowed Advent and Carlyle to pick up 9.99% stake each in Yes Bank on a conditional basis.
  • NMDC: The government has invited expressions of interest to divest its 50.79% stake in the company. The company also reported a rise in production and sale of iron ore during November.
  • ONGC/Reliance Industries/GAIL: The government halved windfall tax on domestic crude to Rs 4,900 per tonne and reduced levy on diesel exports to Rs 6.5 per litre.
  • PB Fintech: SoftBank’s SVF India Holdings is offering 22.8 million shares of the company at a floor price of Rs 440.2 each in a block trade, Bloomberg News reported citing terms of the deal.
  • Hindustan Unilever: The company has formed an ESG committee to assist the board in overseeing the company’s strategy relating to ESG and sustainability matters.
  • MOIL: The company’s production increased 60% sequentially and sales grew 82% on-month during November.
  • NLC India: The company signed an MoU with Odisha government for setting up ground mounted/ floating solar power projects, pumped hydro storage projects, green hydrogen projects and any other renewable projects in the state.
  • SJVN: The company’ subsidiary SJVN Green Energy has signed an MoU with Grid Corporation of Odisha for developing 1000 MW Hydro Electric Projects and 2000 MW Solar Power Projects in Odisha by incorporating a joint venture company.

 

Nifty Outlook

Post gap up opening, Nifty index settled near the day’s low at 18812 levels, up 54 points from its previous closing point.

Broader markets outperformed the benchmark as Mid & Small cap index were up 0.86% and 0.4% respectively, leading to extremely positive market breadth.

Majority of sector gauges tracked at NSE settled in green, IT, Media, PSU Bank index gained maximum, up over 2% each while Auto, FMCG, Pvt Bank index underperformed.

We reiterate our view, Nifty is well placed on long term as well as short term charts, hence, dips can be utilized to take fresh long positions.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty and Banknifty futures on price as well as on open interest front.

Majority of F&O sectors settled higher. Amongst them, IT, Media and Metal stocks witnessed maximum addition of long positions.

On options front, Nifty’s new weekly contract will start with maximum positions at 18800 PE and 19000 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1566 Cr in the cash segment, bought stocks futures worth Rs 941 Cr and sold index futures worth Rs 526 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2665 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 19000-19100; Supports 18830-18760

Banknifty Futures – Resistances 43700-44000; Supports 43280-43100

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