Daily Market Update- Equity 22 Aug 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 22 Aug 2022

Benchmark Nifty index settled lower at 17758 levels after a cut of 200 points from its previous closing values.

Overview and Outlook

Global Market update

  • US equity markets were down in range 0.86 to 2.01%
  • European equity markets also drifted lower, down nearly 1%, FTSE was little changed
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is down by 63 points (as on 8:18 AM)


News Highlights from across the globe

  • Stocks declined while US equity futures fell on Monday amid rising threats to global and the U.S. central bank’s focus to tighter monetary settings in its bid to tackle surge in inflation.
  • The US Federal Reserve will raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a Reuters poll, who said the risks were skewed towards a higher peak.
  • Key for markets this week is the Fed’s symposium at Jackson Hole.


Important news & Earnings Updates from the domestic front

  • Adani Power: The company has agreed to acquire DB Power at an enterprise value of Rs 7,017 crore. DB Power owns and operates a 2×600 MW thermal power plant at District Janjgir Champa in Chhattisgarh.
  • JSW Steel: The company has entered into a joint venture agreement with National Steel Holding for establishing scrap shredding facilities in India.
  • Central Bank of India: The bank entered into strategic co-lending partnership with lncred Financial Services to offer loans to MSME Borrowers.
  • AstraZeneca Pharma India: The pharma company has received import and market permission in Form CT-20, the subsequent new drug approval, from the Drugs Controller General of India for Olaparib film-coated tablets.
  • Central Bank of India: The public sector bank has entered into a strategic co-lending partnership with Incred Financial Services to offer loans to MSME borrowers at competitive rates.
  • Oriental Hotels: Nippon Life India Trustee offloaded 1.95 lakh equity shares or 0.1 percent stake in the company via open market transactions.


Nifty Outlook

Benchmark Nifty index settled lower at 17758 levels after a cut of 200 points from its previous closing values.

Broader markets too performed inline with benchmark as Mid and Small Cap index ended lower over 1% each.

Barring IT, all sectoral indices settled lower. PSU Bank index was at the bottom of the tally, fell 2.66% followed by Realty and PVT Bank index that fell nearly 2% each.

Nifty index witnessed profit taking after facing resistance near 18000 levels. Going ahead, 17600-17500 is an important support on the down side whereas 18000 will act as immediate hurdle on the higher side.


Derivatives Overview & Outlook

Last week, both Nifty & Banknifty futures shed around half a percent of open interest each as long unwinding.

All F&O sectors settled lower. Amongst them, Telecom, Media and Capital Goods stocks witnessed additions of short positions where most of the indices were down on profit booking.

On options front, call writing was seen at multiple strikes and maximum positions are at 18000 CE & 17000 PE.


FII & DII Trading Activity

On Friday, FIIs bought stocks worth Rs 23139 Cr in the cash segment, sold stocks futures worth Rs 2504 Cr and also sold index futures worth Rs 3067 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1808 Cr during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17830-17950; Supports 17680-17600

Banknifty Futures – Resistances 39350-39650; Supports 38690-38350


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