Daily Market Update- Equity 26 Sep 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 26 Sep 2022

Nifty Index ended steeply lower, down by over 300 points at 17327 levels on the final trading session of the week.

Overview and Outlook

Global Market Update

  • US equity markets were down by 1.6%
  • European equity markets were down by nearly 2%
  • Asian equity markets are largely trading in red
  • SGX Nifty is down 136 points (as on 8:21 AM)


News highlights from across the globe

  • The dollar rallied, bond yields rose and Asian shares slid amid unrelenting pressure on risk-sensitive assets as fears of faster inflation and global recession continued to rise.
  • The pound led declines among major currencies on Monday, slumping to a record low as the UK Chancellor vowed to press on with the tax cuts that threaten to stoke inflation. The euro fell as investors weighed prospects of Italy under the most right-wing government since World War II.


Important news updates from the domestic front

  • Yes Bank: The bank amended its July 15 release that said that it had successfully exited the reconstruction plan initiated by RBI in March 2020. However, the amended release now states that the bank can only exit reconstruction scheme after RBI confirmation of the compliance certificate and the completion of the three-year lock-in period with respect to 75% of shares held by shareholders.
  • Britannia Industries: The company has named Rajneet Kohli as executive director and chief executive officer with effect from Sept. 26. It also named managing director Varun Berry as the executive vice-chairman.
  • Embassy Office Parks REIT: Shareholder Blackstone Inc. will sell 7.2% to 9.6% stake in the company for $400 million, Reuters reported. Abu Dhabi’s sovereign wealth fund is likely to pick up at least half of the stake that Blackstone is to sell, the report added.
  • Nestle India: To invest Rs 5,000 crore in India by 2025.
  • Unichem Laboratories: The company sells 20% stake in Optimus Drugs Ltd. to Sekhmet Pharmaventures Ltd. for Rs 270.98 crore.
  • Coal India: The company will sign memorandum of understanding with Bharat Heavy Electricals, Indian Oil Corporation and GAIL (India) for setting up four Surface Coal Gasification projects.
  • Glenmark: The company along with Bausch Health announced that nasal spray Ryaltris has been approved by Health Canada for the symptomatic treatment of moderate to severe seasonal allergic rhinitis.


Nifty Outlook

Nifty Index ended steeply lower, down by over 300 points at 17327 levels on the final trading session of the week.

Broader market underperformed benchmark as Mid & Small cap index fell 2.68% and 2.04% lower respectively, leading to extremely weak market breadth.

All sector gauges tracked at NSE settled in red, PSU bank index was at the bottom of the tally, down nearly 4% as shares of SBI, Bank Baroda, Canara Bank were down in range 2.7 to over 5%.

Nifty index has settled below crucial support of 17400-mark, going ahead there are higher chances of this sell-off to continue till 17200 levels.


Derivatives Overview & Outlook

On Friday, both Nifty & Banknifty futures added around 3% & 10% of open interest respectively as short buildup.

All F&O sectors settled lower. Amongst them, Power, Telecom, Oil & Gas stocks witnessed maximum addition of short positions.

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


FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 2869 Cr in the cash segment, sold stocks futures worth Rs 2523 Cr and sold index futures worth Rs 3886 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1138 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17440-17550; Supports 17250-17150

Banknifty Futures – Resistances 40000-40400; Supports 39300-39000


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.