Daily Market Update- Equity 22 Dec 2022 | Globe Capital
22-Dec-2022
Daily Market Update- Equity 22 Dec 2022

Nifty index ended steeply lower after a volatile trading session, closed shop at 18199, down 186 points.

Overview and Outlook

Global Market Update

  • US equity markets settled higher by 1.6%
  • European equity markets were also up in range 1.5 to 2%
  • Asian equity markets are trading in green
  • SGX Nifty is up 113 points (as on 8:20 AM)

 

News highlights from across the globe

  • U.S. stocks fared well as rising investor sentiment and better-than-expected results by some propped up the market. The S&P 500 was up 1.4%, as were 95% of the stocks listed on the index, and so was the tech-heavy Nasdaq 100.
  • Stocks opened higher in Japan, South Korea and Australia on Thursday, buoyed by gains in the U.S. markets. Futures for Hong Kong climbed, as did an index of US-listed Chinese shares.
  • Crude rose 2.3%, while gold futures changed little.

 

Important news updates from the domestic front

  • Adani Enterprises: Group subsidiary Adani Solar launched India’s first large sized monocrystalline silicon ingot, which can be used to make PV modules with efficiencies ranging from 21-24%.
  • Reliance Industries: Reliance Retail Ventures Ltd., a subsidiary of Reliance Industries Ltd., signed definitive agreements to acquire 100% equity stake in METRO Cash & Carry India Pvt Ltd. for a total cash consideration of Rs 2,850 crore, subject to closing adjustments.
  • Bharat Forge: The company started supply of forgings utilising green steel in order to reduce carbon footprint.
  • Speciality Restaurants: The board approved raising Rs 127.23 crore via issue of 60 lakh warrants convertible at Rs 212.05 each.
  • Torrent Pharmaceuticals: The board approved scheme of amalgamation for merger of subsidiary Curatio Health Care into itself.
  • Union Bank of India: The bank considered issued AT-I bonds worth Rs 200 crore with a green shoe option of Rs 580 crore on private placement basis.
  • Bandhan Bank: The bank has received a binding bid from an asset reconstruction company worth Rs 801 crore on security receipt consideration basis, for the written-off portfolio with outstanding of Rs 8,897 crore.
  • Kalpataru Power Transmission: The Ahmedabad Bench of the National Company Law Tribunal approved the merger of JMC Projects with the company.
  • Borosil: Trial production of opal ware glass for the additional capacity of 42 tonnes per day, began at the company’s Jaipur on December 20, 2022.

 

Nifty Outlook

Nifty index ended steeply lower after a volatile trading session, closed shop at 18199, down 186 points.

Broader markets performed in line with benchmark, Mid cap index was down 1.37% while Small cap index lost 2.27%, leading to extremely weak market breadth.

Pharma index outshined as it soared 2.39%, apart from this It index also settled in green while all other sector gauges tracked at NSE settled in red. PSU Bank index was at the bottom of the tally, down 2.85%.

Going ahead, 18100 is the next immediate support, once that is taken out 18000 and 17900 will act as next supports.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 2% of open interest as short buildup whereas Banknifty future shed around 3% of open interest as long unwinding.

Barring Pharma, all F&O sectors settled lower. Amongst them, Finance and Capital Goods stocks witnessed maximum addition of short positions.

On options front, call writing was seen at multiple strikes along with put buying (unwinding by writers) at multiple strikes and maximum positions are at 18000 PE and 18500 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1119 Cr in the cash segment, bought stocks futures worth Rs 201 Cr and sold index futures worth Rs 585 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1257 Cr.

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