Daily Market Update- Equity 30 Aug 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 30 Aug 2022

Tracking global cues, Nifty index opened with a huge gap on the down side, settled off lows at 17312 levels, down 246 points.

Overview and Outlook

Global Market update

  • US equity markets ended lower in range 0.57 to 1.02%’
  • European equity markets were down by 0.6 to 0.83%
  • Asian equity markets are largely trading in green
  • SGX Nifty is up 70 points (as on 8:16 AM)


News Highlights from across the globe

  • Federal Reserve’s chair Jerome Powell said that the central bank will continue raising interest rates to tame inflation.
  • Oil rose as traders watch out for crude outages that may hit global supply amid clashes in Libya.


Important news & Earnings Updates from the domestic front

  • Wall Street brokerage Bank of America Securities has sharply revised upward its Nifty forecast in the range of 18,500-19,500 points by December, after two successive downward revisions in June and earlier this month.
  • Adani Enterprises/NDTV: Adani Enterprises said that its arm Vishvapradhan Commercial Pvt has sought a clarification from the market regulator SEBI on the conversion of NDTV’s warrants required for acquisition of stake.
  • Krishna Institute of Medical Sciences (KIMS): The company has entered into a definitive agreement to acquire 51% in SPANV Medisearch Lifesciences, Nagpur, that runs a multi-specialty hospital ‘Kingsway Hospitals’, having over 300+ beds. Post-acquisition, the hospital will be renamed ‘KIMS Kingsway Hospitals.’
  • Zomato: CEO Deepinder Goyal said he has no plan of moving away from day-to-day operations at the company and renaming of Zomato to ‘Eternal’ isn’t in the pipeline yet.
  • BLS International Services: Nomura Singapore picks half a percent stake in BLS International Services. Nomura Singapore acquired 11 lakh equity shares in the company via open market transactions at an average price of Rs 230 per share.
  • Orient Cement: Franklin Templeton Mutual Fund cuts stake in Orient Cement. The Mutual Fund sold 1.52 lakh equity shares or 0.07% stake in the cement company on August 26. With this, it has reduced stake in the company to 3.12% from 3.2% earlier.
  • Thyrocare Technologies: Fundsmith Emerging Equities Trust Plc offloads nearly all shares in Thyrocare Technologies. It sold 2,68,707 equity shares in the company at an average price of Rs 614.79 per share, and 3.2 lakh shares at average price of Rs 615.14 per share.


Nifty Outlook

Tracking global cues, Nifty index opened with a huge gap on the down side, settled off lows at 17312 levels, down 246 points.

Broader markets outperformed benchmark as Mid & Small cap index were down nearly 1% each, against 1.4% decline in the benchmark. Market breadth was quite weak; declines were double the number of advances.

Barring FMCG, all other sector gauges tracked at NSE settled in red, IT index lost maximum, down 3.53% followed by Media that was down over 2%.

Nifty index witnessed steep sell off on the first trading session of the week, due to which it is now trading close to its crucial supports i.e. 17300 levels. Break below this level will lead to a further sell off towards 17000-mark in the immediate near term.


Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures added around 4% of open interest each as short buildup.

Majority of F&O sectors settled lower. Among them, Capital Goods, IT and Infra stocks witnessed maximum additions of short positions.

On options front, call writing was seen at multiple strikes along with put addition at 17000 strikes and maximum positions are at 18000 CE followed by 17700 CE & 17000 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 561 Cr in the cash segment, sold stocks futures worth Rs 1532 Cr and sold index futures worth Rs 1122 Cr. DIIs were net buyers in the cash segment to the tune of Rs 144 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17450-17580; Supports 17260-17150

Banknifty Futures – Resistances 38750-39050; Supports 38150-38000


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