Daily Market Update- Equity 29 Sep 2022 | Globe Capital
29-Sep-2022
Daily Market Update- Equity 29 Sep 2022

Nifty index settled at the day’s low after volatile trading session where both sides move was witnessed, eventually the benchmark settled at 16858 levels, down nearly 150 points.

Overview and Outlook

Global Market Update

  • US equity markets were up by about 2%
  • European equity markets settled on flat to positive note
  • Asian equity markets are trading in green
  • SGX Nifty is up over 150 points (as on 8:16 AM)

 

News highlights from across the globe

  • U.S. stocks finally emerged from the rout since Federal Reserve’s recent hawkish policy announcement. Meanwhile, 10-year treasuries declined 21 basis points to 3.73%.
  • The Bank of England said it would step in to the bond market in an attempt to dampen investors’ fears of contagion across the financial system.
  • Oil prices jumped higher on Wednesday for a second day, rebounding from recent losses as the US dollar eased off recent gains and US fuel inventory figures showed larger-than-expected drawdowns and a rebound in consumer demand.

 

Important news updates from the domestic front

  • Torrent Pharmaceuticals: The USFDA inspected the company’s manufacturing facility at Indrad, Gujarat from Sept. 19 to Sept. 28. At the end of the inspection, the company has been issued a Form 483 with three observations. None of these observations were related to data integrity.
  • Shree Cement: CARE Ratings has assigned ‘CARE AAA; Stable’ rating to the long-trm bank facilities of the company.
  • Blue Dart Express: The company announced its general price increase, effective Jan. 1, 2023. The average shipment price increase will be 9.6% as compared to 2022, depending on the shipping profile.
  • S.H. Kelkar and Co.: Keva Europe BV, a wholly owned subsidiary of the company, acquired 19% equity stake in Provier Beheer BV taking its stake to 81%. The balance will be acquired in a span of two years.Creative Flavours & Fragrances, material subsidiary of the company, acquired balance 30% of stake in Nova Fragrance, making it a wholly owned subsidiary.
  • Dish TV: The company’s board approved transfer of its entire stake in Dish TV Lanka to Union International for 25 million Sri Lankan rupees (Rs 55.84 lakh). Following the transaction, Dish TV Lanka will stop to be the subsidiary of the company.
  • Edelweiss Financial Services: The company has subscribed to the rights issue of its subsidiary Edelweiss Tokio Life Insurance Co., and has been allotted 25 crore equity shares for Rs 250 crore. Consequently, the shareholding of the company in ETLI has gone up from 66% to 75.08%.
  • Ramco Cements: The company commissioned its fifth integrated cement plant at Kolumigundla in Kurnool district of Andhra Pradesh. The plant has a clinkerisation capacity of 2.25 million tonnes per annum.
  • Titan Company/Kalyan Jewellers: The market share of gold jewellery chain stores can surpass 40% in the next five years, according to a report by the World Gold Council.
  • Bharat Heavy Electricals: Gets NTPC order for Odisha thermal power project.

 

Nifty Outlook

Nifty index settled at the day’s low after volatile trading session where both sides move was witnessed, eventually the benchmark settled at 16858 levels, down nearly 150 points.

Broader markets outperformed benchmark as Mid & Small cap index settled 0.5% lower against nearly 1% decline in Nifty index, but market breadth was quite weak.

Banking & Finance pack lost maximum, PSU Bank index was at the bottom of the tally, down 2.07% while IT pack outshined, gained 0.85%.

Nifty index has settled below its 200 EMA placed around 16882 levels, this is a negative development indicating sell-off to continue. Derivatives expiry will add volatility and keep traders on their toes.

 

Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty future added around 4% & 8% of open interest respectively as short buildup.

Nifty and Banknifty futures have rolled 63% & 61% of open interest respectively into next contracts so far.

On options front, call writing was seen at multiple strikes with maximum writing at 17000, maximum call positions are also at 17000 strikes and maximum put positions are at 16800 strikes.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 2772 Cr in the cash segment, sold stocks futures worth Rs 401 Cr and bought index futures worth Rs 104 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2544 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 16950-17050; Supports 16750-16650

Banknifty Futures – Resistances 38100-38400; Supports 37500-37200

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