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

Nifty index settled near the day’s low at 18159.95 levels after lackluster trading session, it traded in narrow range of 18140-18180 levels for most part of the day.

Overview and Outlook

Global Market Update

  • US equity markets ended on flat to negative note, Nasdaq fell over 1%
  • European equity markets too ended on flat to negative note
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:23 AM)


News highlights from across the globe

  • Stocks rose in Asia amid fragile sentiment as investors weighed the impact of Covid infections in China and parsed comments from Federal Reserve officials on interest rate hikes.
  • Wall Street’s main indices ended Monday roughly down amid fears that China could resume stricter measures to fight Covid-19 after it said it faces its most severe test of the pandemic.
  • Oil steadied near $80 per barrel following a volatile session Monday after Saudi Arabia denied a report that it is discussing an oil-production increase for the OPEC+ meeting next month


Important news updates from the domestic front

  • Reliance Industries: The NCLT gave its approval to Reliance Jio, the telecom arm of the company, to acquire Reliance Infratel, the holding company for tower and fibre assets of Reliance Communications.
  • Axis Bank: S&P Global Ratings upgraded the bank’s long-term and short-term issuer credit rating to ‘BBB-/A-3’ from ‘BB+/B’, with stable outlook on the long-term rating.
  • New Delhi Television: Adani group’s open offer to acquire an additional 26% stake in the media firm from the market to start from November 22, and will close on December 5. The price band for the offer has been fixed at Rs 294 per share.
  • FSN E-Commerce Ventures (Nykaa): Private equity firm Lighthouse India will sell stake worth Rs 320 crore in FSN E-Commerce Ventures, the owner of beauty e-retailer Nykaa through a block deal, CNBC Awaaz reported.
  • Power Finance Corporation: The company has incorporated two special purpose vehicles for the development of independent transmission projects. Both will be wholly owned subsidiaries of PFC Consulting, a wholly owned subsidiary of Power Finance Corporation.
  • Lupin: The pharmaceutical company’s subsidiary Lupin Human Welfare and Research Foundation has signed MoU with the Government of Rajasthan to strengthen healthcare system.


Nifty Outlook

Nifty index settled near the day’s low at 18159.95 levels after lackluster trading session, it traded in narrow range of 18140-18180 levels for most part of the day.

Broader markets too performed in line with benchmark, Mid cap index was down 0.04% while Small cap index was up 0.24%, leading to extremely weak market breadth.

Majority of sector gauges tracked at NSE settled in red, IT & realty index lost maximum, down 1.5% and 1.27% respectively while PSU Bank index was at the top of the tally, up 1.4%.

Nifty index is still looking weak, we believe, decisive fall below 18130 levels will quickly take the benchmark index towards 18050/18000 levels.


Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 1% of open interest as long unwinding whereas Banknifty future added around 2% of open interest as short buildup.

Nifty and Banknifty futures have rolled 29% & 30% of open interest respectively into next contracts so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 18300 CE and  18000 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1594 Cr in the cash segment, bought stocks futures worth Rs 194 Cr and sold index futures worth Rs 761 Cr. On the other hand, DIIs were net buyers in the cash segment to the tune of Rs 1263 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18270-18340; Supports 18130-18030

Banknifty Futures – Resistances 42500-42700; Supports 42200-42000


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