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

Post steep gap up opening of approx 150 points, Nifty further rallied towards 17919. But it could not sustain higher levels & managed to close near opening levels i.e. 17816.

Overview and Outlook

Global Market Update

  • US equity markets were down by 1%
  • European equity markets too ended in red, down in range 0.6 to 1.35%
  • Asian equity markets are also trading in red
  • SGX Nifty is down 75 points (as on 8:26 AM)


News highlights from across the globe

  • Wall Street ended lower on Tuesday as the eve of a US Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the US central bank wants to tame. Treasuries advanced 10 basis points to reach 3.6%.
  • The S&P 500 dropped 1%, while the tech-heavy Nasdaq dipped 0.6%. Meanwhile oil fell over expectations of further monetary tightening by policymakers around the world. Gold dropped 0.3%.


Important news updates from the domestic front

  • Yes Bank: Yes Bank will sell its Rs 48,000 crore bad loan portfolio to JC Flowers ARC. The bank’s board has also approved the purchase of 19.99% stake in JC Flowers Asset Reconstruction Company, subject to regulatory approvals.
  • Tamilnad Mercantile Bank: The RBI has declined the request for appointment of B. Vijayadurai as part time non-executive chairman of the bank and asked it to submit a fresh proposal of another independent director for the post.
  • Piramal Enterprises: The company’s board has approved the motion to raise Rs 215 crore through NCDs on a private placement basis. The board will again meet on Sept. 23 to discuss the proposal to raise Rs 750 crore via non-convertible debentures.
  • NBCC (India): The company has secured the total business of Rs 274.77 crore during August 2022.
  • Wipro: Wipro has partnered with Finastra to offer digital transformation services to corporate banks in India. This partnership combines Wipro’s expertise across consulting, digital, infrastructure and operations, with Finastra’s cutting-edge solutions to deliver modern API enabled platforms for banks to innovate, streamline and digitize core trade finance processes, while reducing cost overheads.
  • Aditya Birla Fashion: The company board has approved allotment of 1.02 crore shares worth Rs 295 crore at Rs 288.75 apiece, and 6.58 crore warrants at Rs 288.75 per warrant amounting to Rs 1,900 crore to Caladium Investment.
  • Hero MotoCorp/Hindustan Petroleum Corporation: Hero MotoCorp and Hindustan Petroleum Corporation have entered into a collaboration to establish charging infrastructure for two-wheeler EVs in the country.


Nifty Outlook

Post steep gap up opening of approx 150 points, Nifty further rallied towards 17919. But it could not sustain higher levels and a major profit taking was witness. Index managed to close near open levels i.e. 17816.

With positive market breath strength, all indices managed to close in green. Out of them, major contributors were Pharma and Healthcare index that managed to hold gains above 3%.

With major event of rate hike by Fed around the corner, Nifty can feel heat below 17800 for further down side of 17500 as major support lies there.


Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 3% of open interest as short covering whereas Banknifty futures added around 1.5% of open interest as long buildup.

On sectoral front, long buildup was seen among Finance, Oil & Gas and Auto stocks whereas rest were up on short covering.

On options front, put writing was seen at multiple strikes and maximum positions are at 17000 PE followed by 17600 PE and 18000 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 1196 Cr in the cash segment, bought stocks futures worth Rs 1188 Cr and also bought index futures worth Rs 1844 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 132 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17900-18000; Supports 17750-17650

Banknifty Futures – Resistances 41700-42000; Supports 41250-40900


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.