Daily Market Update- Equity 20 Oct 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 20 Oct 2022

Tracking global cues, Nifty index opened on a strong note, failed to hold at higher levels and settled on a flattish note at 17512 levels, up 25 points.

Overview and Outlook

Global Market Update

  • US equity markets ended in red
  • European equity markets settled on flat to negative note
  • Asian equity markets are also trading in red
  • SGX Nifty is down 154 points (as on 8:13 AM)


News highlights from across the globe

  • Wall Street closed lower on Wednesday, marking the end of a multi-session rally, and Treasury yields spiked as gloomy data and downbeat corporate outlooks tossed cold water on investor risk appetite. All three major US stock indexes lost ground, while the benchmark Treasury yield shot up to touch a new 14-year high.
  • Rupee tested new record low of 83 against the U.S. dollar after wiping gains from early trade.


Important news updates from the domestic front

  • Jindal Steel & Power: The company signed an MoU with Greenko Group to facilitate 1,000 MW of carbon-free energy for its steel-making operations at Angul, Odisha. The project will cut down carbon dioxide emissions by approximately 7 million tonnes.
  • Adani Enterprises: Vishvapradhan Commercial, the company’s indirect subsidiary, in a letter to SEBI reaffirmed its commitment to its commitment to complete the NDTV open offer. It asked the regulator for observations on the open offer.
  • Metro Brands/Cravatex: The company acquired Cravatex Brands, a retail, brand licensing, distribution and sourcing company that has the exclusive long‐term license for the Italian sportswear brand FILA, owns sportwear brand Proline, and represents other international brands, for Rs 202.17 crore to expand its presence in the sports and athleisure space in India.
  • Lupin: The USFDA issued a Form 483 with seventeen observations after a prior-approval inspection at the company’s manufacturing facility in Pune, conducted in October 2022.
  • NLC India: The company signed a power purchase agreement with Kerala State Electricity Board for procuring 400 MW from the upcoming NLC Talabira Thermal Power Project of 2,400 MW capacity at Talabira, Odisha.
  • Kotak Mahindra Bank: At its meeting on Oct. 22, the board of the bank will consider a proposal for raising of funds via listed, redeemable, unsecured non-convertible debentures in one or more tranches on a private placement basis.
  • Bharat Electronics: Triton Electric Vehicle India, a part of U.S.-based Triton Electric Vehicle LLC, issued a letter of intent to the company for procurement of 300 KW li-ion battery packs for its semi-truck project in India at an estimated value of Rs 8,060 crore.
  • IRB Infrastructure Developers: The company has completed equity raise of Rs 533.20 crore for its Ganga Expressway Project. Singapore-based GIC Affiliates contributed Rs 261.29 crore and the company contributed Rs 271.90 crore. The company will hold 51% stake in the project while GIC Affiliate will hold 49%.
  • Adani Ports and Special Economic Zone: The board of the company approved allotment of 4.78 crore shares of face value Rs 2 each to eligible shareholders of Gangavaram Port.
  • Life Insurance Corporation of India: The corporation diluted its shareholding in NHPC to 5.203% from 7.230%. The board of LIC also approved infusion of equity capital of LKR 600 million (Rs 13.20 crore) in LIC (Lanka) Ltd.


Nifty Outlook

Tracking global cues, Nifty index opened on a strong note, failed to hold higher levels and settled on a flattish note at 17512 levels, up 25 points.

Broader markets performed in line with benchmark as both Mid & Small cap index settled on flattish note.

Sector performance was mix, IT & metal index lost maximum, down 0.9% and 0.68% respectively while Oil & Gas index was at the top of the tally, up 0.58%.

Markets will be volatile on Thursday as well due to weekly derivatives expiry, on levels front, breakout above 17600 will open the gates for a further up move towards 17700/800 levels in the immediate near term.


Derivatives Overview & Outlook

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

On sectoral front, long buildup was seen among Cement and Infra stocks whereas some short buildup was seen among Chemical, FMCG, Metal and IT stocks.

On options front, put writing was seen at multiple strikes along with call writing at multiple strike and maximum positions are at 17600 CE and 17500 PE followed by 17000 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 454 Cr in the cash segment, bought stocks futures worth Rs 155 Cr and sold index futures worth Rs 141 Cr. DIIs were net buyers in the cash segment to the tune of Rs 908 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17600-17700; Supports 17430-17325

Banknifty Futures – Resistances 40670-41000; Supports 40200-40000


Earnings Today – ITC, Colgate Palmolive, Asian Paints, Axis Bank, Bajaj Finance, Canara Bank, Central Bank of India, Coforge, Zensar Technologies, Union Bank of India, United Breweries, Tata Consumer Products among others


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