Daily Market Update- Equity 2 Sep 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 2 Sep 2022

Tracking global cues, Nifty index opened steeply lower after trading holiday on Wednesday, it failed to recover and settled over 200 points lower at 17542 levels.

Overview and Outlook

Global Market update

  • US equity markets were mix, Nasdaq was down 0.6% while Dow Jones gained 0.46%
  • European equity markets were down by average over 1%
  • Asian equity markets are also trading in red
  • SGX Nifty is little changed (as on 8:20 AM)


News Highlights from across the globe

  • A late recovery on Wall Street took U.S. stocks higher ahead of U.S. jobs report on Friday, which would possibly hint at the extent of hawkishness of the Federal Reserve at its meeting later this month.
  • Treasuries slumped with the two-year yield rising to the highest in almost 15 years. The dollar surged to a record high while Brent Crude fell to $92 per barrel.


Important news & Earnings Updates from the domestic front

  • The fall in energy and oil & gas stocks followed government’s decision to hike windfall tax on diesel, crude and ATF exports.
  • Chief economist at State Bank of India has revised downward the full-year growth forecast to a low 6.8% from 7.5% earlier for FY2023, citing “the way below GDP numbers for the first quarter”.
  • Adani Enterprises/NDTV: Adani Enterprises, in response to NDTV’s promoter company RRPRs letter claiming that Income Tax Department approval is needed for deal, said that it has “no merit or basis in law or in fact.” VCPL called upon RRPR withdraw the letter and execute the conversion of warrants.
  • Adani Enterprises/Shree Cement: The National Stock Exchange has included Adani Enterprises Ltd. in its Nifty 50 index, while removing Shree Cement Ltd. in the semi-annual rejig.
  • Infosys: The company completed acquisition of Europe based consulting firm BASE life science. BASE further expands Infosys’ footprint in the Nordics region and will bring domain experts with commercial, medical, digital marketing, clinical, regulatory, and quality knowhow.
  • GMR Power & Urban Infrastructure: The company approved for raising of funds of up to Rs 3000 crore in one or more tranches through issue of securities including a Qualified Institutions Placement and/or Foreign Currency Convertible Bonds and/or any other securities.
  • NTPC: The company is considering selling 20% stake of its clean energy unit, Bloomberg reported. Brookfield Asset Management Inc. and Canada Pension Plan Investment Board are among 13 suitors that have shown interest, the report added.
  • Eicher Motors: The company’s total motorcycle sales rose 53% year-on-year to 70,112 units in August.
  • SIS: The company has signed share purchase agreement to acquire 85% stake in Safety Direct Solutions Pty for AUD 5 million. Acquisition will make SIS Group Australia’s largest Emergency Services provider.
  • GAIL India: India, Russia in talks to resume LNG Supply, Reuters Cites GAIL.


Nifty Outlook

Tracking global cues, Nifty index opened steeply lower after trading holiday on Wednesday, it failed to recover and settled over 200 points lower at 17542 levels.

Broader markets outperformed benchmark as both Mid & Small cap index settled in green, due to which market breath was flat, slightly tilted towards the advancing side.

Majority of sector gauges tracked at NSE settled in red, Realty & PSU Bank index outperformed while IT, Healthcare & Oil& Gas index lost maximum.

Going ahead, 17400 spot level will act as crucial support, sustenance bellow the same will open the gates for further selloff while 17700 levels will act as an immediate resistance.


Derivatives Overview & Outlook

Yesterday, Nifty futures added around 8.5% of open interest as short buildup whereas Banknifty futures shed around 11% of open interest as long unwinding.

On sectoral front, long buildup was seen among Telecom, Infra and Auto stocks whereas short buildup was seen among Metals, Pharma and IT stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 18000 CE & 17000 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 2290 Cr in the cash segment, sold stocks futures worth Rs 3463 Cr and also sold index futures worth Rs 4189 Cr. DIIs were net buyers in the cash segment to the tune of Rs 951 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17735-17850; Supports 17480-17400

Banknifty Futures – Resistances 39800-40050; Supports 39100-38700


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