Daily Market Update- Equity 3 Nov 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 3 Nov 2022

Nifty index settled near the day’s low after a lackluster trading session, closed shop at 18082 levels, down 62 points.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 1.55 to 3.36%
  • European equity markets too settled in red
  • Asian equity markets are also drifting lower in morning trade
  • SGX Nifty is down 169 points (as on 8:16 AM)


News highlights from across the globe

  • The US Federal Reserve pumped up its benchmark interest rate Wednesday by 75 BPS for a fourth straight time but hinted that it could soon reduce the size of its rate hikes.
  • The Fed’s move raised its key short-term rate to a range of 3.75 percent to 4 percent, its highest level in 15 years. It was the central bank’s sixth rate hike this year — a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession.
  • Wheat prices fell by the most since the early weeks of the war in Ukraine after Russia reversed a decision to block shipments. Oil fell to unwind a recent rally.


Important news updates from the domestic front

  • Wipro: The company launched a new financial services advisory capability in India, named Capco.
  • Adani Transmission: The board granted in-principle approval for issuance of non-convertible debentures worth up to Rs 1,500 crore.
  • Life Insurance Corporation of India: The insurer diluted its shareholding in Rail Vikas Nigam to 6.7% from 8.72%.
  • JK Cement: Subsidiary Jaykaycem (Central) commenced cement grinding with capacity of two million tonnes per annum at its newly set up cement manufacturing facilities in Panna, Madhya Pradesh.
  • Info Edge (India): The board will convene on Nov. 11 to consider a dividend for the current fiscal.
  • Triveni Turbine: The board approved the proposal for buyback of equity shares worth up to Rs 190 crore through tender offer route at Rs 350 per share, representing 1.68% of the total shareholding of the company.
  • Piramal Enterprises: The board of directors will meet on Nov. 7, 2022, to consider and approve the issuance of non-convertible debentures on a private placement basis.


Nifty Outlook

Nifty index settled near the day’s low after a lackluster trading session, closed shop at 18082 levels, down 62 points.

Broader markets performance was in line with benchmark as Mid & Small cap index were down0.22% and 0.12% respectively, leading to flat market breadth.

Sector performance was mix, Media and Metal index were at the top of the tally, up 0.85% and 0.64% respectively while PSU Bank & Auto index lost maximum.

Today, markets will react to US Fed rates decision which was announced post market on Wednesday and its impact will be witnessed  in the opening move apart from this scheduled weekly derivatives expiry & RBI’s rate decision will add volatility.


Derivatives Overview & Outlook

Yesterday, Nifty futures shed around 6% of open interest as long unwinding whereas Banknifty futures added around 3% of open interest as short buildup.

On sectoral front, short buildup was seen among Chemicals, Finance, Power and Textile stocks.

On options front, no significant activity was seen and maximum positions are at 18400 CE and 18000 PE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 1436 Cr in the cash segment, sold stocks futures worth Rs 1224 Cr and also sold index futures worth Rs 629 Cr. On the other hand, DIIs sold stocks worth Rs 1378 Cr in the cash segment.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18230-18300; Supports 18050-17950

Banknifty Futures – Resistances 41600-41825; Supports 41000-40700


Earnings Today – Adani Enterprises, Ajanta Pharma, Amara Raja Batteries, Apar Industries, Adani Total Gas, Adani Wilmar, Bank Of India, Blue Star, Coromandel International, Devyani International, Elecon Engineering, GMM Pfaudler, Hawkins Cookers, HDFC, Hero Moto Corp, Hindustan Petroleum Corporation, Indian Bank, Indigo Paints, IndInfravit Trust, JK Laksmi Cement, Jindal Stainless (Hisar), Mahindra Lifespace Devel


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