Daily Market Update- Equity 28 Nov 2022 | Globe Capital
28-Nov-2022
Daily Market Update- Equity 28 Nov 2022

The domestic benchmark Nifty index settled flat after lackluster trading session, closed shop at 18512, up 28 points.

Overview and Outlook

Global Market Update

  • US equity markets were mix, Nasdaq ended 0.5% lower while Dow Jones gained 0.45%
  • European equity markets settled on a flattish note
  • Asian equity markets are trading in red
  • SGX Nifty is down 75 points (as on 8:26 AM)

 

News highlights from across the globe

  • Shares were under downward pressure and the dollar climbed as markets opened on Monday to news of growing unrest in China over Covid restrictions.
  • The dollar benefited from haven demand and made some of its biggest early gains against the currencies of Australia and South Africa, both of which are exposed to trade with China.

 

Important news updates from the domestic front

  • Indian Energy Exchange: Indian Energy Exchange to buyback upto 49 lakh shares representing 0.55% of the paid-up share capital via open market. Buyback price is Rs 200 apiece.
  • L&T Financial Holding: The company has received Rs 3,484 crores ($425 million) as consideration along with Rs 764 crores cash for the sale of L&T Investment Management to HSBC Asset Management.
  • Life Insurance Corporation: The company decreased its shareholding from 6.29% to 4.21% in DCM Ltd.
  • VA Tech Wabag: The company has signed an agreement with Asian Development Bank towards raising Rs. 200 crores through unlisted Non-Convertible Debentures.
  • One 97 Communications (Paytm): RBI asks Paytm Payments Services to reapply for online payment aggregator license. PPSL must seek necessary approval for past downward investment from Paytm in to PPSL, to comply with FDI guidelines. PPSL must also not onboard new online merchants. Reapplication must be completed within 120 days.
  • Hero MotoCorp: The company has decided to raise the ex-showroom prices of its motorcycles and scooters from December 1. The price increase will be up to Rs 1,500 and the quantum will vary by specific models and markets.
  • Bajaj Finance: Entered into a share-purchase agreement to acquire up to 40% stake in Snapwork Technologies. The company intends to strengthen the technology roadmap through this acquisition.
  • Lemon Tree Hotels: Signed a license agreement for a 42-room hotel in Jamshedpur. The hotel is expected to be operational by end of September 2023.

 

Nifty Outlook

The domestic benchmark Nifty index settled flat after lackluster trading session, closed shop at 18512, up 28 points.

Broader markets outperformed benchmark as Mid & Small cap settled 0.98% and 1.12%, leading to strong market breadth.

Majority of sector gauges tracked at NSE settled in green, amongst them Media & Realty index were at the top of the tally, up 2.5% and 1.17% respectively while Banking & finance pack underperformed they settled on flat to negative note.

Nifty index is firmly placed on short as well as long term charts indicating bullish bias to persist. Nifty futures traded at record highs on Friday but in spot Nifty it is still nearly 100 points short of a new high, which is likely to be tested and surpasses on Monday.

 

Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures remained almost unchanged on the price front whereas on open interest front Banknifty futures shed around 6% of open interest and Nifty futures added around 2.5% of open interest.

All F&O sectors settled higher. Amongst them, Capital Goods, Finance and Oil & Gas stocks witnessed maximum addition of long positions.

On options front, call writing was seen at multiple strikes along with put writing at multiple strikes and maximum positions are at 18300 PE and 19000 CE closely followed by 18500 CE.

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 1342 Cr in the cash segment, bought stocks futures worth Rs 4305 Cr and also bought index futures worth Rs 2612 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 1781 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18725-18800; Supports 18580-18480

Banknifty Futures – Resistances 43565-43850; Supports 43000-42800

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