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

Nifty Index ended flat after volatile trading session, closed shop tad above 17000-mark, down 8.9 points.

Overview and Outlook

Global Market Update

  • US equity markets were ended on mix note, Down Jones fell 0.4% while Nasdaq settled 0.25% higher
  • European equity markets settled on flat to negative note
  • Asian equity markets are trading in red
  • SGX Nifty is down 179 points (as on 8:14 AM)


News highlights from across the globe

  • The S&P 500 fell to its lowest level in almost two years on Tuesday on worries about super aggressive Federal Reserve policy tightening, trading under its June trough and leaving investors appraising how much further stocks would have to fall before stabilizing.


Important news updates from the domestic front

  • Torrent Pharmaceuticals: The company has entered into definitive agreements to acquire 100% of Curatio Healthcare for Rs 2,000 crore. The consideration includes Rs 115 crore of cash on the date of signing and cash equivalents in the acquired business indicating an enterprise value of Rs 1,885 crore.
  • Bharti Airtel: Promoter Bharti Telecom has acquired 19 crore shares, representing 3.2% of the entire shareholding, of the company from affiliates of Singtel. Now Bharti Telecom holds 38.62% equity stake in Bharti Airtel.
  • Jammu and Kashmir Bank: Care Ratings has assigned ‘CARE A +; Stable’ rating to Tier II bonds (Basel III) of Rs 1,500 crore.
  • NDTV: SEBI has reportedly filed civil appeals before the Supreme Court against NDTV, its founder-promoters Prannoy Roy, Radhika Roy, and the promoter-group vehicle, RRPR Holding. These appeals reportedly are against an order of the Securities Appellate Tribunal, dated July 20, 2022, which found that there was no indirect transfer of control of NDTV by the founder-promoters via loan arrangements in 2009-10.
  • Mahindra & Mahindra: The company acquired 21.14 lakh shares, constituting 17.41% of the paid up equity share capital of Swaraj Engines from Kirloskar Industries. Mahindra now holds 52.13% of the equity share capital of Swaraj Engines.
  • Adani Enterprises: The company has raised Rs 100 crore via NCDs on private placement basis.
  • Axis Bank: The bank has entered into an indicative and non-binding term sheet with Go Digit Life Insurance for a proposed investment of an amount between Rs 49.90 crore to Rs 69.90 crore, in two tranches, by subscribing to equity shares. The bank is looking to acquire an equity stake of up to 9.94%.
  • Mahindra CIE Automotive: Mahindra & Mahindra has sold 82.42 lakh equity shares of the company, representing 2.17% of the entire shareholding, through the bulk deal window.
  • Bharat Heavy Electricals: The company has received an order for setting up 2×660 MW Talcher Thermal Power Project Stage-III on engineering, procurement and construction basis from NTPC.
  • Power Grid Corporation of India: The company will invest Rs 327.71 crore to build a transmission project connecting Reliance Industries’ Jamnagar Refinery with Jamkhambhaliya ISTS PS.
  • Life Insurance Corporation of India: The company has increased its shareholding in Bharat Petroleum Corporation from 15.25 crore to 19.61 crore shares, increasing its shareholding from 7.03% to 9.04%.
  • Motherson Sumi Wiring India: The board of the company will met on Sept. 30, 2022, to consider and approve the proposal for issuance of bonus shares to the equity shareholders.


Nifty Outlook

Nifty Index ended flat after volatile trading session, closed shop tad above 17000-mark, down 8.9 points.

Broader markets performed in line with benchmark, both Mid & Small cap index ended on flattish note.

Sector performance was mix, Oil & Gas, Pharma & IT index gained maximum, up nearly 1% each while Banking & Finance pack underperformed.

Going ahead, we firmly believe bulls will be back in action above 17200 levels while steep selloff can be witnessed if 16800 is taken out.


Derivatives Overview & Outlook

Yesterday, no meaningful activity was seen in Nifty futures on price as well as on open interest front whereas Banknifty future added around 6% of open interest as short buildup.

Nifty and Banknifty futures have rolled 39% & 40% of open interest respectively into next contracts so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 18000 CE followed by 17500 CE and 16000 PE closely followed by 16500 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 2824 Cr in the cash segment, bought stocks futures worth Rs 1463 Cr and sold index futures worth Rs 990 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3505 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17180-17325; Supports 16950-16850

Banknifty Futures – Resistances 38900-39200; Supports 38270-38000


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