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

Tracking global cues, Nifty index settled near the day’s top at 18145 levels, up 133 points from its previous closing levels.

Overview and Outlook

Global Market Update

  • US equity markets ended in red
  • European equity markets edged higher, up in range 0.64 to 1.29%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is little changed, down 29 points (as on 8:17 AM)

 

News highlights from across the globe

  • Asian equities were mixed on Wednesday, driven by declines in U.S. stocks after hopes of Federal Reserve softening its hawkish stance faded amid strong U.S. jobs data.
  • U.S. stocks pared losses in a volatile session to come off session lows, with U.S. Fed’s policy announcement close at hand. Meanwhile, bond yields changed little with 10-year Treasuries returning 4.05%.
  • The S&P 500 fell 0.3%, while the tech-heavy Nasdaq 100 fell 0.7%. Crude oil rose 2.4%, bolstered by speculations of China reopening.

 

Important news updates from the domestic front

  • Grasim Industries: The board approved issue of non-convertible debentures worth up to Rs 1,000 crore on private placement basis.
  • Tech Mahindra: The IT services company has recorded a 13% sequential increase in consolidated profit at Rs 1,299 crore for the quarter ended September FY23. Consolidated revenue increased by 3.3% QoQ to Rs 13,129 crore for the quarter. Revenue in dollar terms grew by 0.3% QoQ to $1,638 million and it clocked 2.9% growth in revenue in constant currency terms. The company has declared special dividend of Rs 18 per share.
  • Adani Ports and Special Economic Zone: The company’s consolidated profit increased by 65.5% YoY to Rs 1,738 crore for the quarter ended September FY23, supported by top line, operating income and lower tax cost. Revenue surged 33% YoY to Rs 5,211 crore for the quarter. Cargo for the quarter stood at 86.6 MMT, a 15% YoY growth.
  • Voltas: The company posted consolidated loss of Rs 6 crore for the quarter ended September FY23 as against a profit of Rs 104 crore for the same period last year, impacted by provision made on an overseas project. Total income for the quarter at Rs 1,833 crore rose by 5.5 percent compared to the year-ago period.
  • IDFC First Bank: The board will meet on Nov. 04, 2022, to consider capital plan of the bank for the next one year and to explore raising of capital through various permissible modes.
  • Indian Bank: The bank will hike MCLR and TCLR in a range of 15-25 basis points and 45-50 basis points, respectively, across tenors from Nov. 3, 2022.
  • ONGC/Reliance Industries: The government has cut windfall tax on crude petroleum to Rs 9,500 per tonne, and raised the same on export of diesel and ATF to Rs 13 per litre and Rs 5 per litre, respectively.
  • Jai Corp: Deepak Ojha has taken over of as the Chief Financial Officer, with effect from Nov. 1, 2022. He succeeded Pramod Kumar Jaiswal.

 

Nifty Outlook

Tracking global cues, Nifty index settled near the day’s top at 18145 levels, up 133 points from its previous closing levels.

Broader market performance was mix, Mid cap index gained 0.8% while Small cap index ended on flat to positive note, due to which market breadth was also flat.

Majority of sector gauges tracked at NSE settled in green, amongst them, Metal & Pharma index were at the top of the tally, up over 2% each while Banking pack lost maximum.

Markets will remain volatile going ahead as well as it will react to the global and domestic macroeconomic events lined up this week. On levels front, 18350 is next immediate hurdle on the higher side.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 4.5% of open interest as long buildup whereas Banknifty futures remained almost unchanged on price front and added around 2% of open interest.

Majority of F&O sectors settled higher. Amongst them, Realty, Pharma and Power stocks witnessed maximum addition of long positions.

On options front, put writing was seen at multiple strikes and maximum positions are at 18400 CE and 18000 PE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 2610 Cr in the cash segment, bought stocks futures worth Rs 855 Cr and also bought index futures worth Rs 949 Cr. On the other hand, DIIs sold stocks worth Rs 730 Cr in the cash segment.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18300-18375; Supports 18100-18000

Banknifty Futures – Resistances 41750-42000; Supports 41250-41000

 

Earnings Today – M&M Financial Services to be in focus ahead of the quarterly earnings scheduled to be declared today. Others to share their financial results for the September quarter on November 2 include Adani Transmission, Dalmia Bharat, EIH, GATI, Gravita India, JK Paper, Kajaria Ceramics, KSB, Mahindra Holidays & Resorts India, MTAR Technologies, Procter & Gamble Hygiene & Health Care, Redington, SIS, and Triveni Turbine.

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