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

Nifty index settled near the day’s low, down over 300 points at 17016 levels after volatile trading session.

Overview and Outlook

Global Market Update

  • US equity markets were down by 0.6 to 1.1%
  • European equity markets settled on flat to negative note
  • Asian equity markets are largely trading in red
  • SGX Nifty is up 67 points (as on 8:15 AM)

 

News highlights from across the globe

  • Asian markets opened on a cautious note Tuesday following another selloff in US stocks, soaring bond yields and volatile currency markets as investors brace for a heightened risk of global recession.
  • The dollar gauge inched back from a record high Monday, when Federal Reserve officials repeated hawkish comments on policy. Asian currencies including the yen and yuan strengthened slightly while staying around levels that have caused concern from authorities in both countries.
  • Brent crude fell below $85 a barrel on Monday, as recession fears weighed and the US dollar surged

 

Important news updates from the domestic front

  • Jubilant FoodWorks: The company has completed the acquisition of 29.42% stake in Roadcast Tech Solutions as per a July agreement. It will will acquire an additional 10.58% stake in Roadcast Tech by Oct. 26.
  • Mahindra Logistics: The company has agreed to acquire Rivigo’s B2B express cargo service unit on a slump-sale basis, in a deal valued at Rs 225 crore.
  • Jyoti Structures: The company has secured a Rs 237-crore contract from Sterlite Power Transmission for turnkey supply and construction of 400 kV and 220 kV double-circuit transmission lines in Goa and Karnataka. These will be commissioned in a phased manner by December 2023 and July 2024.
  • Amara Raja Batteries: The board has approved demerger of plastic component for battery business from Mangal Industries Ltd. to Amara Raja. MIL shareholders will receive 65 shares of Amara Raja for every 74 shares held.
  • Embassy REIT: Blackstone seeks to raise up to Rs 2,650 crore ($325 million) by selling 7.7 crore shares at Rs 345 apiece.
  • Delta Corp/Nazara Tech: The Tamil Nadu cabinet has approved an ordinance that bans online gaming in the state.

 

Nifty Outlook

Nifty index settled near the day’s low, down over 300 points at 17016 levels after volatile trading session.

Broader markets underperformed benchmark as Mid & Small cap index settled 3.02% and 3.4% respectively, leading to extremely weak market breadth.

Barring IT, all major sector gauges tracked at NSE settled in red. Realty, Metal & Auto index lost maximum, down 4.25%, 4.13% & 3.81% respectively.

Nifty index is looking quite weak on charts having immediate supports around 16880 levels, which is its 200 EMA level.

 

Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures shed around 2% & 11% of open interest respectively as long unwinding.

Nifty & Banknifty futures have rolled 29% & 33% of open interest respectively into next contracts so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 16000 PE closely followed by 17000 PE and 18000 CE followed by 17500 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 5101 Cr in the cash segment, bought stocks futures worth Rs 823 Cr and also bought index futures worth Rs 941 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3532 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17180-17325; Supports 16890-16780

Banknifty Futures – Resistances 39050-39300; Supports 38450-38000

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