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

Nifty index settled nearly 100 points lower after a lackluster trading session, closed shop at 17718 levels.

Overview and Outlook

Global Market Update

  • US equity markets were down by 1.7%
  • European equity markets settled in green
  • Asian equity markets are also trading in red
  • SGX Nifty is down 125 points (as on 8:33 AM)


News highlights from across the globe

  • U.S. stocks swung between gains and losses as the Federal Reserve hiked policy rates by 75 basis points for a third time. Treasuries advanced two basis points to 3.59%, while two-year yields topped 4%.
  • Oil erased gains ahead of the U.S. Fed policy announcement even as supply chains faced heightened pressure from Russia’s threat to escalate the Ukraine war.


Important news updates from the domestic front

  • Adani Ports And Special Economic Zone: The company has won a Rs 25,000 crore project to the Tajpur deep sea port in West Bengal. The greenfield project will see Rs 15,000 crore utilised toward port development and the rest toward building related infrastructure.
  • State Bank of India: State Bank of India has raised Rs 4,000 crore Basel III compliant Tier 2 bonds at coupon rate of 7.57%. The bonds have a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter.
  • SpiceJet: Aviation regulator DGCA has extended the 50% limit on SpiceJet’s number of flight departures until Oct. 29 as a matter of ‘abundant caution’. The airline will be subjected to “enhanced surveillance” during this period, DGCA said.
  • Vedanta: The Union Cabinet has approved tweaks in the scheme for semiconductors and display manufacturing ecosystem. Under the modified program an uniform fiscal support of 50% of project cost shall be provided for semiconductor fabs across all technology nodes. The reformed scheme will also provide fiscal support of 50% of capital expenditure for setting up of compound semiconductors/silicon photonics/sensors/discrete semiconductors fabs.
  • Reliance Industries/Adani Enterprises/Tata Power: The Union Cabinet approved a Rs 19,500-crore production linked incentive scheme on ‘national programme on high efficiency solar PV modules’ with an aim to attract Rs 94,000 crore investment in the sector.
  • Kirloskar Oil Engines: The company will acquire balance stake in Ahmedabad-based La-Gajjar Machineries, making the latter a 100% subsidiary. It had acquired 76% stake in LGM in 2017 with an agreement that the balance holding will be acquired over a 5-year period.
  • DLF: DLF Cyber City Developers, a material subsidiary unit of DLF, has allotted 5,000 NCDs to raise Rs 500 crore.
  • Punjab National Bank: The bank has raised Rs 658 crore through Basel Ill compliant additional Tier-I capital bonds at a coupon of 8.3%.
  • Ashoka Buildcon: The company has won a project worth Rs 258.12 crore from South Western Railway for construction of new BG line, including electrical and telecommunication works, on engineering, procurement and construction mode. The project is to be completed within 24 months.
  • Suzlon Energy: The company’s board will meet on Sept. 25 to consider and approve the terms and conditions of the rights issue approved on Aug. 10, including determination of the price.
  • Adani Transmission: Aims to become a net-zero carbon emitter by 2050.


Nifty Outlook

Nifty index settled nearly 100 points lower after a lackluster trading session, closed shop at 17718 levels.

Broader market performance was in line with benchmark, Mid & Small cap index settled 0.6% and 1.03% lower. Market breadth was quite weak; over 1500 declines were recorded against 671 advances at NSE.

Barring FMCG that gained 1.18%, all other sector gauges tracked at NSE settled in red. Metal index was the worst performer of the day, lost over 2%.

Nifty index will react to the outcome of US Fed meet whose impact will be witnessed in today’s opening move. As per charts, fall below 17650 levels will take the benchmark index towards 17450 while break above 17850 will open the gates for a further up move towards 18000-mark and beyond.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty futures on open interest front whereas Banknifty futures shed around 10% of open interest as long unwinding.

Majority of F&O sectors settled lower. Amongst them, Telecom, Oil & Gas, 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 (short covering by writers) at multiple strikes and maximum positions are at 17500 PE and 18000 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 461 Cr in the cash segment, sold stocks futures worth Rs 1453 Cr and also sold index futures worth Rs 1092 Cr. DIIs were net buyers in the cash segment to the tune of Rs 539 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17845-17950; Supports 17650-17540

Banknifty Futures – Resistances 41550-41860; Supports 40900-40550


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.