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

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