Daily Market Update- Equity 24 Aug 2022 | Globe Capital
24-Aug-2022
Daily Market Update- Equity 24 Aug 2022

Nifty index settled 0.5% higher at 17577 levels after a highly volatile trading session where steep moves were witnessed on both sides.

Overview and Outlook

Global Market update

  • US equity markets settled on flat to negative note
  • European equity markets also settled on flat to negative note
  • Majority of Asian equity markets are also trading in red
  • SGX Nifty is down 75 points (as on 8:12 AM)

 

News Highlights from across the globe

  • Wall Street ended down on Tuesday as investors focused on data showing a slowing economy ahead of a US Federal Reserve gathering later this week in Jackson Hole, Wyoming.
  • The S&P 500 dipped after data showed private-sector business activity in the United States contracted for a second straight month in August, with particular softness in the services sector as demand weakened in the face of inflation and tighter financial conditions.

 

Important news & Earnings Updates from the domestic front

  • Adani Enterprises/NDTV: The Adani Group company’s indirect subsidiary Vishvapradhan Commercial (VCPL) has exercised certain warrants for acquiring 99.5 percent shareholding in RRPR Holding (RRPR), a promoter company of New Delhi Television Limited (NDTV). The acquisition will result in VCPL acquiring control of RRPR. RRPR holds 29.18 percent stake in NDTV.
  • Chennai Petroleum: The company approved the proposal for a joint venture with Indian Oil and other seed equity investors including Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company for implementing 9 MMTPA refinery project at Cauvery Basin refinery Nagapattinam District.
  • Himatsingka Seide: CRISIL has downgraded the credit rating on company’s long term debt to BBB+, from A- with negative outlook, and short term debt rating has been downgraded to A2 from A2+.
  • KEI Industries: Rating agency ICRA has upgraded the long term bank facilities ratings & reaffirmed short term bank facilities/ debt instruments ratings of the company.

 

Nifty Outlook

Nifty index settled 0.5% higher at 17577 levels after a highly volatile trading session where steep moves were witnessed on both sides.

Broader markets outperformed benchmark, Mid & Small cap index gained 1.14% and 0.7% respectively, leading to a healthy market breadth.

Barring IT all major sector gauges tracked at NSE settled in green. PSU Bank index gained maximum, up 2.34% followed by Auto that gained 1.8%.

We expect profit taking to continue ahead as well till 17500 levels, hence, sell on rise is the best strategy for short term traders.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 2.5% of open interest as long buildup whereas Banknifty futures shed around 1% of open interest as short covering.

Nifty & Banknifty futures have rolled 48% & 41% of open interest respectively into next contracts so far.

On options front, put writing was seen at 17500 & 17400 strikes and maximum positions are at 18000 CE & 17500 PE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 563 Cr in the cash segment, bought stocks futures worth Rs 367 Cr and sold index futures worth Rs 110 Cr. DIIs were net sellers in the cash segment to the tune of Rs 215 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17700-17815; Supports 17525-17400

Banknifty Futures – Resistances 39200-39550; Supports 38550-38200

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