Daily Market Update- Equity 29 Aug 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 29 Aug 2022

Nifty index ended flat after yet another volatile trading session, closed shop at 17558 levels, up 36 points.

Overview and Outlook

Global Market update

  • US equity markets ende steeply lower in range 3.03 to 3.94%’
  • European equity markets were down by 0.76 to 2.24%
  • Asian equity markets are also trading in red
  • SGX Nifty is down by 364 points (as on 8:34 AM)


News Highlights from across the globe

  • US equity futures fell Monday and stocks in Asia are off to a weak open after Federal Reserve Chair Jerome Powell’s comments flagging the need for restrictive monetary policy for some time to tackle rise in inflation.
  • At the Jackson Hole annual economic symposium, Powell issued warning of potential economic pain for households and businesses.


Important news & Earnings Updates from the domestic front

  • Ultratech: The company commissioned cement capacity of 1.3 MTPA at Dalla Cement Works, Uttar Pradesh taking the company’s total cement manufacturing capacity in India now stands at 115.85 MTPA.
  • RITES: The company secured order with for redevelopment of Kollam Railway Station for Rs. 361.18 crores from Southern Railway, Ernakulam, Kerala. The company’s share in the order is 51%.
  • SRF: The company commissioned second BOPP Film Line & Metallizer at Indore for an aggregate cost of Rs 446 crore.
  • Cipla: Says U.S. FDA made six observations on Goa facility. Company is working with U.S. FDA to address the issues within stipulated time.
  • Mahindra & Mahindra: Says SsangYong Motor ‘Rehabilitation Plan’ approved.
  • Manappuram Finance: To consider raising funds via debt in September.
  • NDTV: Shifts AGM date to September 27 from September 20.
  • Syngene International: To buy up to 26% stake in O2 renewable


Nifty Outlook

Nifty index ended flat after yet another volatile trading session, closed shop at 17558 levels, up 36 points.

Broader markets outperformed benchmark, Mid & Small cap index gained 0.55% and 0.7% respectively leading to positive market breadth.

Majority of sector gauges tracked at NSE settled in green, Metal & Consumer Durables index gained maximum, up 1.77% and 1.29% while Media index was at the bottom, down 0.66%.

Market will react to US Feb Chairman’s speech at Jackson Hall on Friday; its impact will be seen on Monday. As per charts, 17400-700 is the trading range; an either side break from this range will lead to next directional move.


Derivatives Overview & Outlook

On Friday, both Nifty and Banknifty futures added around 1% & 1.5% of open interest respectively as long buildup.

On the sectoral front, long buildup was seen among Chemicals, Capital Goods, Metals and Power stocks whereas some long unwinding was seen among Media stocks.

On the options front, put writing was seen at multiple strikes along with call writing at multiple strikes and maximum positions are at 17700 CE and 17000 PE.


FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 3190 Cr in the cash segment, sold stocks futures worth Rs 1888 Cr and also sold index futures worth Rs 3262 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 502 Cr during the week.


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