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

Nifty index settled nearly 100 points higher after lackluster trading session.

Overview and Outlook

Global Market Update

  • US equity markets were up by 0.64%
  • European equity markets were mix, DAX ended higher while FTSE & CAC settled in red
  • Asian equity markets are trading in green
  • SGX Nifty is up 155 points (as on 8:16 AM)


News highlights from across the globe

  •  Investors will keenly track the upcoming U.S. Federal Reserve monetary policy meeting, with another aggressive rate hike expected.
  • Stocks climbed in Asia Tuesday following a rebound in the final hour of New York trading as investors continue to weigh the market impact of super-sized interest rate hikes from the US Federal Reserve.


Important news updates from the domestic front

  • Crompton Greaves/Butterfly Gandhimathi: Crompton Greaves will sell up to 10.73 lakh shares of its subsidiary Butterfly Gandhimathi Appliances on Sept. 20-21. The floor price is Rs 1,370 apiece, a discount of 9% from Monday’s closing price.
  • Ircon International: The firm has won a Rs 250-crore engineering and project management contract from Mahanadi Coalfields. The total duration for the project is 15 months.
  • Hatsun Agro: The company has approved rights issue of Rs 400 crore.
  • Adani Enterprises: The company has raised Rs 100 crore via market-linked non-convertible debentures on private placement basis.
  • Natco Pharma: The Delhi High Court has allowed the company to launch Chlorantraniliprole and its formulations, through its non-infringing process. CTPR technical is formulated into broad spectrum insecticides used across wide range of crops for pest management.
  • Future Supply Chain Solutions: The board has called off the sale of its warehousing assets due to delay in regulatory approvals.
  • Can Fin Homes: Girish Kousgi, managing director and chief executive officer, has resigned from his post due to personal reasons.


Nifty Outlook

Nifty just like Newton’s apple has fallen from dearly 18100 levels but today a halt has been noticed on 17500 levels. After making a low of 17429, index rallied towards 17667, approx 238 points and managed to close near day’s high – 17622.

Nifty PSU Bank index closed 2.03% higher. Indian bank, Bank of India, Bank of Baroda, Uco Bank and State Bank of India are major contributors of index, making it as highest gaining index.

Nifty Metal was major loser, closing 0.45% lower. National aluminum, Vedanta, Jindal Steel fell the most.

If the benhcmark index manages to stay above 17708 with good probability we can reach 17800. On contrary, if nifty break and stay below 17420, the next level would be 17320.

While making any position in index or stocks, trader should keep upcoming major event of Fed’s rate hike coming on 21st September which will ultimately be making market a volatile place.


Derivatives Overview & Outlook

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

On sectoral front, long buildup was seen among Auto stocks whereas some short buildup was seen among Telecom and Oil & Gas stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 17500 PE and 18000 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 312 Cr in the cash segment, bought stocks futures worth Rs 42 Cr and also bought index futures worth Rs 1173 Cr. DIIs were net sellers to the tune of Rs 95 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17725-17825; Supports 17550-17450

Banknifty Futures – Resistances 41300-41650; Supports 40750-40500


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.