Daily Market Update- Equity 28 Oct 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 28 Oct 2022

Nifty index settled near the day’s top after an otherwise weak trading session, closed shop at 17736 levels, up 80 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets were mix, Dow Jones gained 0.6% while Nasdaq was down 1.6%
  • European equity markets closed on a mix note
  • Majority of Asian equity markets are trading in red
  • SGX Nifty is up 66 points (as on 8:19 AM)


News highlights from across the globe

  • U.S. stocks seesawed in a volatile session as traders tried to balance conflicting earnings message with mixed economic data. Bond yields saw a downtrend as returns on 10-year Treasuries declined 6 basis points to 3.95%.
  • The S&P 500 changed little till mid of the day, while the tech-heavy Nasdaq 100 fell 1.3%. Oil jumped 1.4% as economic data showed a rebound in the U.S., easing recession fears and bolstering demand outlook.


Important news updates from the domestic front

  • Vedanta: The company, along with other parties to the production sharing contract, got government approval for 10-year extension till May 14, 2030, for Rajasthan oil block.
  • IDBI Bank: The finance ministry extended the deadline for potential bidders to submit queries on IDBI Bank privatisation by 13 days till Nov. 10.
  • IFCI: The company issued 9.29 crore shares at a price of Rs 10.76 per share on preferential basis to the Government of India, aggregating to around Rs 100 crore. Now the government holds 66.35% shares in the company.
  • Indus Towers: The board of the company has approved raising Rs 2,000 crore via non-convertible debentures in one or more tranches on private placement basis.
  • Spandana Sphoorty Financial: The board of the company will convene on Nov. 1, 2022, to consider and approve raising of funds via NCDs on a private placement basis.
  • FSN E-Commerce Ventures: The company will appoint Rajesh Uppalapati as Chief Technology Officer, with effect from Nov. 01, 2022.
  • EKI Energy Services: The company has executed a joint venture agreement to incorporate a public limited company to drive focused educational initiatives and establish climate finance marketplace to mobilise funds from global markets for sustainable climate projects across the world.
  • Infibeam Avenues: The company received in-principle authorisation from the Reserve Bank of India to operate as a payment aggregator.
  • Dhanuka Agritech: The board of directors will meet on Nov. 1 to we wish to consider the proposal for buyback of fully paid-up equity shares through tender offer route.
  • Kaveri Seed Company: The board approved buyback of equity shares at a price of Rs 700 apiece, aggregating to Rs 125 crore.
  • PC Jeweller: The company defaulted on loans worth Rs 3,466.28 crore.


Nifty Outlook 

Nifty index settled near the day’s top after an otherwise weak trading session, closed shop at 17736 levels, up 80 points from its previous closing value.

Broader markets performed in line with benchmark, Mid & Small cap index were up 0.78% and 0.41% respectively. Market breadth was flat, 1192 advances were recorded against 1006 declines at NSE.

Barring IT, all sector gauges tracked at NSE settled in green, Realty and Metal index were at the top of the tally, up 2.96% and 2.7% respectively followed by Oil & Gas pack that was up 1.36%.

Nifty index settled near the day’s top, this is a positive development indicating more upside move ahead. Going ahead, sustenance above 17600 is the key for sustainable up move towards 18000-mark.


Derivatives Overview & Outlook

Yesterday, both Nifty and Banknifty futures remained almost unchanged on the price front whereas on open interest front both shed around 20% of open interest.

Nifty & Banknifty futures rolled 76% of open interest each into next contracts which was lower than the previous month rollovers of 78% and 82% respectively.

On options front, Nifty will start the first week of November series with maximum positions at 18400 CE and 17700 PE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 2818 Cr in the cash segment, bought stocks futures worth Rs 2557 Cr and also bought index futures worth Rs 4104 Cr. On the other hand, DIIs sold stocks worth Rs 1580 Cr in the cash segment.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17800-17900; Supports 17650-17570

Banknifty Futures – Resistances 41550-42000; Supports 41100-40850


Earnings Today – Vedanta, Maruti Suzuki India, Mangalore Refinery & Petrochemicals, Tata Power, JSW Energy, Dr. Reddy’s Laboratories, Astec Lifesciences, Bandhan Bank, Blue Dart Express, Carborundum Universal, CCL Products (India), Datamatics Global Services, Dwarikesh Sugar Industries, Eveready Industries India, IFB Industries, Intellect Design Arena, NIIT, Olectra Greentech, Punjab Alkalies & Chemicals, Ramco Industries, Rane Holdings, Satia Industries, Satin Creditcare Network, Sona BLW Precision Forgings, Sumitomo Chemical India, TTK Healthcare


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