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

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