Daily Market Update- Equity 27 Oct 2022 | Globe Capital
27-Oct-2022
Daily Market Update- Equity 27 Oct 2022

Nifty index settled near the day’s low at 17656 levels after a cut of 74 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets ended on flat to negative note, Nasdaq was down over 2%
  • European equity markets were up in range 0.4 to 1.09%
  • Majority of Asian equity markets were mix
  • SGX Nifty is up 66 points but in value terms it is up nearly 250 points (as on 8:17 AM)

 

News highlights from across the globe

  • Global equity investors parsed mixed messages on Thursday betting on a further recovery for Chinese shares, while weak tech earnings dimmed the outlook for U.S stocks. Treasury yields fell.
  • US-listed Chinese stocks rallied and futures for Hong Kong equities pointed towards a possible second day of gains on Thursday following sharp losses after President Xi Jinping tightened his grip on the country over the weekend.
  • U.S. stocks dropped as investors parsed fresh economic data and disappointing earnings while mulling the Federal Reserve’s path after the Bank of Canada announced a smaller-than-expected rate hike.

 

Important news updates from the domestic front

  • DLF: The company plans to launch new projects worth Rs 3,500 crore, mainly in Gurugram and Panchkula, during the second half of this fiscal.
  • Trident: The company has commissioned a new solar power project of 8.87 MWp at Budhni, Madhya Pradesh for captive use at its locally based manufacturing facilities.
  • Macrotech Developers: ICRA has assigned [ICRA] A+ (Stable) rating to the company’s term loan facility worth Rs 600 crore.
  • Mahindra & Mahindra: The company incorporated a wholly owned subsidiary, Mahindra Electric Automobile, to undertake its four-wheeler passenger electric vehicles business.
  • LT Foods: The board of the company will meet on Oct. 31, 2022 to discuss raising of funds and reorganization of shareholding framework of subsidiary companies.

 

Nifty Outlook 

Nifty index settled near the day’s low at 17656 levels after a cut of 74 points from its previous closing value.
Broader market performance was mix, Mid cap index was up 0.47% while Small cap index settled on flat to negative note, leading to weak market breadth.
Sector performance was mix, PSU Bank index was at the top of the tally, up 3.5% followed by Auto that gained 1.24% while FMCG index was at the bottom of the tally, down over 1% as shares of Hindustan Unilever were down 2.6%.
Nifty index is likely to remain volatile going ahead as well due to holidays this week along with scheduled derivatives expiry on 27 Oct.

 

Derivatives Overview & Outlook

On Tuesday, both Nifty and Banknifty futures remined almost unchanged on the price front whereas on open interest front Nifty shed around 2.5% of open interest and Banknifty added around 5% of open interest.

Nifty and Banknifty futures have rolled 49% & 56% of open interest into next contracts so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 18000 CE and 17500 PE.

 

FII & DII Trading Activity

On Tuesday, FIIs sold stocks worth Rs 247 Cr in the cash segment, bought stocks futures worth Rs 2991 Cr and also bought index futures worth Rs 53 Cr. DIIs were net buyers in the cash segment to the tune of Rs 873 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17720-17800; Supports 17580-17500

Banknifty Futures – Resistances 41550-42000; Supports 40800-40500

 

Earnings Today – Aditya Birla Sun Life AMC, Anupam Rasayan India, Balaji Amines, Gokaldas Exports, Indian Metals & Ferro Alloys, Indus Towers, Latent View Analytics, Lloyds Steels Industries, CE Info Systems, PC Jeweller, PNB Housing Finance, REC, SBI Cards and Payment Services, Supreme Petrochem, Tata Chemicals, Tamilnad Mercantile Bank, Vaibhav Global, V-Guard Industries

 

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