Daily Market Update- Equity 23 Sep 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 23 Sep 2022

Nifty index settled 88 points lower after volatile trading session, closed shop at 17629 levels.

Overview and Outlook

Global Market Update

  • US equity markets were down by 0.35 to 1.37%
  • European equity markets settled lower in range 1.08 to 1.84%
  • Asian equity markets are also trading in red
  • SGX Nifty is down 93 points (as on 8:19 AM)


News highlights from across the globe

  • U.S. stocks traded in red as bond yields reached multi-year highs after the Fed’s 75-basis-point hike. Yield on 10-year Treasuries advanced 14 basis points to 3.67%, while two-year yields topped 4.1%.
  • The US current account deficit narrowed sharply in the second quarter amid a surge in goods exports, data showed on Thursday. The Commerce Department said that the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted 11.1% to $251.1 billion last quarter.


Important news updates from the domestic front

  • IT Stocks: Accenture Plc’s revenue rose in the fourth quarter but its FY23 guidance remained below estimates. Accenture expects revenue to rise between 10% to 14% for the first quarter of FY23. And grow 8% to 11% in the fiscal 2023.
  • Tata Steel: Board approves the merger of Tata Metaliks, Tata Steel Long Products, Tinplate Company of India, TRF, The Indian Steel & Wire Products, Tata Steel Mining and S&T Mining Company with itself.
  • Mahindra & Mahindra Financial Services: The RBI asks the company to stop outsourcing all recovery and repossession arrangements immediately, till further orders. It may continue taking these actions through its own employees. The action came after a pregnant woman was mowed down by a recovery agent of the company.
  • Hero MotoCorp: The company has increased ex-showroom prices of its motorcycles and scooters up to Rs 1,000, with effect from Sept. 22, to partially offset the impact of cost inflation.
  • Aster DM Healthcare: Medcare Hospital, a step-down material subsidiary of the company has acquired 60% stake in Dubai-based Skin III, for 16.65 million dirhams (Rs 36.74 crore). Skin III offers IV drips (vitamin and detox) and other aesthetics procedures.
  • TVS Motor Company: Sundaram Auto Components, a wholly owned subsidiary of the company, has sold its entire stake of 50.05% in Sundaram Holding USA Inc., a material step-down subsidiary of TVS Motor, to the holding company, Sundaram-Clayton for a consideration of Rs 317.01 crore.
  • Adani Enterprises: Adani Road Transport, a wholly owned subsidiary of the company, has incorporated two wholly owned subsidiaries—Adani Road STPL and Adani Road GRICL—for promotion and development of road and other infrastructure projects.
  • Cipla: The company has received the establishment inspection report from USFDA for product specific pre-approval inspection at its Indore plant, indicating closure of the inspection.


Nifty Outlook

Nifty index settled 88 points lower after volatile trading session, closed shop at 17629 levels.

Broader markets outshined as Mid & Small cap index settled 0.34% and 0.6% higher respectively due to which market breadth was on a flat to positive note.

Sector performance was mix, Media & FMCG index gained maximum, up 1.85% and 1.3% respectively while Banking & Finance pack was at the bottom of the tally.

Nifty index is trading close to its important support levels; fall below 17500 could lead to further sell-off towards 17400 and lower levels in the immediate near term.


Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures added around 10% of open interest each as long buildup.

On sectoral front, long buildup was seen among Auto, Realty, Textile and Infra stocks whereas some short buildup was seen among Banking stocks.

On options front, Nifty will start the last week of Sep expiry with maximum positions at 17000 PE and 19000 CE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 2510 Cr in the cash segment, bought stocks futures worth Rs 691 Cr and sold index futures worth Rs 2438 Cr. DIIs were net buyers in the cash segment to the tune of Rs 263 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17750-17845; Supports 17540-17450

Banknifty Futures – Resistances 41000-41300; Supports 40400-40200


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