Daily Market Update- Equity 21 Oct 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 21 Oct 2022

Nifty index ended flat after lackluster trading session, closed shop at 17563 levels, up 51.7 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.3 to 0.8%
  • European equity markets were up in range 0.2 to 0.76%
  • Asian equity markets are  trading mix
  • SGX Nifty is little changed (as on 8:20 AM)


News highlights from across the globe

  • Stocks in Asia dropped following after another down day for US equities, with Treasury yields at the highest level since the global financial crisis.
  • Hawkish remarks from Federal Reserve officials and swaps pricing in a 5% peak policy rate in 2023 should continue to support the greenback against its major peers and emerging-market currencies.


Important news updates from the domestic front

  • Yes Bank: The CCI approved sale of 10% the bank’s stake each to Carlyle Group and Advent International, under the lender’s efforts to raise $1.1 billion from the two global investors.
  • Suzlon Energy: The Rs 1,200-crore rights issue of the company was oversubscribed 1.8 times.
  • Wipro: The company appointed Suzanne Dann as CEO for Americas 2 Strategic Market Unit, effective immediately. She will also join the Wipro executive board.
  • KNR Constructions: The company has transferred its remaining 51% equity stake in each of the subsidiaries KNR Tirumala Infra and KNR Shankarampet Projects to Cube Highways and Infrastructure III for a consideration of Rs 114.22 crore.
  • ICICI Bank: The bank’s New York branch entered into a consent order with its federal banking supervisor, the Office of the Comptroller of the Currency, which requires the branch to enhance certain processes in its Bank Secrecy Act/Anti-Money Laundering program and establish and maintain an effective Sanctions Compliance program.
  • TVS Motor Company: The company will discuss issue of zero coupon debentures at its board meeting on Nov. 4, 2022.
  • Tata Motors: The company confirmed that it has won an order for 20 electric buses from the Government of Jammu and Kashmir, in response to a notice seeking clarification on the same.
  • HIL: The company acquired the entire business undertaking of Fast Build Blocks through a slump sale arrangement on a going concern basis for 37 crore.
  • Asian Paints: The company will also invest Rs 2,100 crore over three years to set up a manufacturing facility for Vinyl Acetate Ethylene Emulsion and Vinyl Acetate Monomer.


Nifty Outlook

Nifty index ended flat after lackluster trading session, closed shop at 17563 levels, up 51.7 points from its previous closing value.

Broader market performance was mix, Mid cap index was down 0.42% while Small cap index ended flat, due to which market breadth was also flat.

Sector performance was mix, PSU Bank, Oil & Gas, IT, Metal index gained over 1% each while Private Bank index was at the bottom of the tally, down 1%.

Nifty index is well placed on short term charts, indicating up side move ahead. Going ahead, sustenance above 17600 levels could lead to a further up move towards 17800 levels in the immediate near term.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty & Banknifty futures on price front whereas on open interest front both Nifty and Banknifty futures added around 10% & 5% of open interest respectively.

On sectoral front, long buildup was seen among Telecom, Textile and Chemical stocks whereas some short buildup was seen among Banking stocks.

On options front, Nifty will start the last weekly expiry of Oct series with maximum positions at 18000 CE and 17000 PE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 1865 Cr in the cash segment, bought stocks futures worth Rs 1349 Cr and sold index futures worth Rs 1785 Cr. DIIs were net buyers in the cash segment to the tune of Rs 887 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

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

Banknifty Futures – Resistances 40650-41000; Supports 39900-39600


Earnings Today – Reliance Industries, Hindustan Unilever, Bajaj Finserv, HDFC Life Insurance, JSW Steel, IDBI Bank, Hindustan Zinc, Bajaj Holdings, DLF, Ambuja Cements, Indraprastha Gas, United Spirits, Torrent Pharmaceuticals, Tata Steel Long Products, SBI Life Insurance Company, Route Mobile, Ramkrishna Forgings, Poonawalla Finance among others


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