Daily Market Update- Equity 23 Aug 2022 | Globe Capital
23-Aug-2022
Daily Market Update- Equity 23 Aug 2022

Tracking global cues, Nifty index opened on a weak note, kept falling throughout the day to settle at the day’s low at 17490 levels, down 267 points.

Overview and Outlook

Global Market update

  • US equity markets were down in range 1.9 to 2.55%
  • European equity markets too ended in red, down in range 0.22 to 2.32%
  • Asian equity markets are also trading in red
  • SGX Nifty is down 71 points (as on 8:14 AM)

 

News Highlights from across the globe

  • A sobering tone took over Wall Street after a rally that added $7 trillion to the stock market, with traders bracing for hawkish tone of Federal Reserve officials at the Jackson Hole retreat later this week.
  • Oil pared losses as Saudi Oil Minister said that market disconnect between futures prices and supply and demand may force OPEC+ to tighten production levels.
  • The local currency depreciated against the U.S. dollar amid concerns over high inflation and rising crude oil prices.

 

Important news & Earnings Updates from the domestic front

  • NTPC: The company’s first part capacity of 10 MW out of 20 MW Gandhar Solar PV Project at Gandhar, Gujarat, is declared on Commercial Operation from Aug. 23.
  • Infosys: The company scaled back the average variable payout of employees to about 70% for the June quarter amid margin squeeze and high employee costs.
  • IIFL Finance: The company’s subsidiary IIFL Home Finance approved allotment of 53.76 lakh shares, representing 20% stake, to Abu Dhabi Investment Fund for a consideration of Rs 2,200 crore.
  • Lemon Tree: The company has signed license agreement for a 65 room hotel at Hubli, Karnataka. The hotel is expected to be operational by May, 2023.
  • RBL Bank: The bank approved raising Rs 3,000 crore via debt securities on private placement basis.

 

Nifty Outlook

Tracking global cues, Nifty index opened on a weak note, kept falling throughout the day to finally settle at the day’s low at 17490 levels, down 267 points.

Broader markets performed in line with benchmark, Mid & Small cap index were down 2.02% and 1.63% respectively, leading to extremely weak market breadth.

All sector gauges tracked at NSE settled in red, Metal & PSU Bank index lost maximum, down 2.98% and 2.12% respectively.

Nifty index is falling on expected lines, sustenance below 17500 is a sign of weakness indicating further decline. There are higher chances of Nifty index drifting lower towards 17150 levels in the immediate near term.

 

Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures shed around 6% & 12% of open interest respectively as long unwinding.

Nifty & Banknifty futures have rolled 36% & 34% of open interest respectively into next contracts so far.

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

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 454 Cr in the cash segment, sold stocks futures worth Rs 214 Cr and bought index futures worth Rs 542 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 85 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17600-17700; Supports 17400-17280

Banknifty Futures – Resistances 38600-39000; Supports 38000-37700

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