Daily Market Update- Equity 26 Dec 2022 | Globe Capital
26-Dec-2022
Daily Market Update- Equity 26 Dec 2022

Tracking negative cues from the global peers, benchmark Nifty index opened with a gap on the down side, it kept sliding lower throughout the day and settled tad above 17800 levels, down over 300 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets ended on flat to positive note
  • European equity markets also ended flat
  • Majority of Asian equity markets are trading on flat to positive note
  • SGX Nifty is up 50 points (as on 8:18 AM)

 

News highlights from across the globe

  • Markets opened higher in Tokyo, on Monday as Japan and mainland China took center stage for traders, with most other Asia-Pacific markets closed for holidays. Chinese markets could see a damped appetite for risk-taking over its ability to cope after abandoning its Covid Zero policy.
  • The S&P 500 and the tech-heavy Nasdaq 100 in the U.S. suffered their third week of losses, the longest losing stre

 

Important news updates from the domestic front

  • NDTV: Promoters Prannoy Roy and Radhika Roy will sell 27.26% stake to RRPR Holding, giving Adani Group control over 64.71% shares of the company.
  • Karnataka Bank: The bank received RBI approval for appointment of Sekhar Rao as the executive director for a period of three years.
  • Quess Corp.: The company withdrew the scheme of amalgamation of Allsec Technologies with itself. Its board approved appointment of Kamal Pal Hoda as the group CFO.
  • Tata Motors: Subsidiary TML CV Mobility Solutions signed a definitive agreement with Delhi Transport Corporation for operating 1,500 electric buses in New Delhi for 12 years.
  • SpiceJet: The company clarified to the exchanges that it continues to explore various options for settlement of its outstanding dues with its creditors to normalize its obligations.
  • SJVN: The company won the full quoted capacity of 100 MW wind power project from Solar Energy Corporation of India for Rs 700 crore at Rs 2.90 per unit on build own and operate basis through e-reverse auction.
  • HDFC: The mortgage lender received a $400 million loan from International Finance Corporation to bridge the urban housing gap and promoter green housing in India.
  • United Breweries: The NCLAT upheld the CCI order imposing Rs 751.83 crore fine on the company over charges of price co-ordination in beer market in India.
  • Siemens India: The company becomes the lowest (L1) bidder for the 9,000 HP electric locomotives as Railways issues the contract for Rs 26,000 crore.

 

Nifty Outlook

Tracking negative cues from the global peers, benchmark Nifty index opened with a gap on the down side, it kept sliding lower throughout the day and settled tad above 17800 levels, down over 300 points from its previous closing values.

Broader markets underperformed the benchmark as Mid and Small cap index fell 3.35% & 4.72% respectively. Market breadth was heavily tilted towards the declining side as over 2000 declines were recorded against 244 advances at NSE.  Among Nifty 50 stocks, only 3 stocks managed to close in green.

All sectoral indices tracked at NSE settled lower. PSU bank index was the worst performer, down over 6% followed by Media, Metal, Realty and Auto index that were down over 2% to 5%.

Going ahead, we reiterate our bearish view on Nifty index, and see it heading towards 17500-17400 levels in immediate near term. Hence, we suggest traders to maintain sell on rise trading strategy till it is trading below 18150 levels.

 

Derivatives Overview & Outlook

On Friday, Nifty futures added around 6% of open interest as short buildup whereas Banknifty future shed around 1.5% of open interest as long unwinding.

Both Nifty and Banknifty futures have rolled 28% of open interest each into next contracts so far.

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

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 1032 Cr in the cash segment, bought stocks futures worth Rs 2400 Cr and sold index futures worth Rs 3617 Cr. DIIs were net buyers in the cash segment to the tune of Rs 8545 Cr during the week.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18000-18120; Supports 17800-17700
Banknifty Futures – Resistances 42050-42300; Supports 41500-41200

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