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

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