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

Tracking global cues, Nifty index opened with a huge gap on the higher side, failed to hold higher levels and settled at 16818 levels, down 40 points from its previous closing value.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 1.5 to 2.84%
  • European equity markets were down by over 1.5%
  • Asian equity markets are also trading in red
  • SGX Nifty is down 60 points (as on 8:29 AM)


News highlights from across the globe

  • Wall Street ended sharply lower on Thursday on worries that the US Federal Reserve’s aggressive fight against inflation could hobble the US economy, and as investors fretted about a rout in global currency and debt markets. With tech heavyweights Apple Inc and Nvidia Corp slumping more than 4%, the Nasdaq sank to near its lowest level of 2022, set in mid-June.
  • Treasuries pared losses with 10-year yield rising three basis points to 3.76%.
  • Oil rose 0.2%, amid OPEC+ discussions over slashing output at its meeting next week.


Important news updates from the domestic front

  • RBI Monetary Policy review – A Bloomberg poll of 26 economists shows a median forecast of 5.9%. 17 economists expect a hike of 50 basis points, 8 expect a hike of 35 basis points, and one expects a hike of 25 basis points. The policy repo rate is currently at 5.4%.
  • Adani Power: The Competition Commission of India approved the acquisition of 100% equity of Diliigent Power and DB Power by Adani Power.
  • Hero MotoCorp: The company will invest $60 million (about Rs 490 crore) in U.S.-based Zero Motorcycles to jointly develop electric motorcycles.
  • Vodafone Idea: In response to clarification sought by the exchanges on reports of Indus Towers seeking payment of dues to continue services, the company said that discussions are going on over softer payment terms and are yet to be concluded.
  • Adani Green: The company commissioned the world’s largest wind-solar power plant of 600 MW capacity in Jaisalmer, Rajasthan.
  • Maruti Suzuki/Tata Motors/Mahindra & Mahindra: Car sales volumes in India are expected to increase by 12.5% this year and another 4% in 2023, Moody’s said.
  • Bajaj Electricals: The company received an order for supply of goods and services under a transmission line project from Power Grid Corporation of India, aggregating to Rs 332.65 crore.
  • Zydus Lifesciences: The USFDA completed pre-approval inspection of Ahmedabad-based manufacturing facility of Zydus Animal Health and Investments, a wholly owned subsidiary of the company, and issued two observations, none of which were related to data integrity.
  • Coforge: The company received U.S. patent for its Copasys automated compliance audit and quality assurance platform which is built for banks and financial institutions.
  • Punjab National Bank: The lender will sell its entire stake in Asset Reconstruction Company (India), amounting to 10.01% of the entire shareholding of the latter.
  • Life Insurance Corporation of India/Deepak Nitrite: The LIC increased its shareholding in Deepak Nitrite from 4.977% to 5.028%.

Nifty Outlook

Tracking global cues, Nifty index opened with a huge gap on the higher side, failed to hold higher levels and settled at 16818 levels, down 40 points from its previous closing value.

Broader markets outperformed benchmark, Mid & Small cap index gained 0.48% and 0.6% respectively.

Sector performance was mix, Pharma, Media, PSU Bank, Health Care sectors gained maximum, up over 1% each while IT index was at the bottom of the tally, down 0.9%.

Nifty index is likely to remain volatile on Friday as well due RBI Monetary Policy, its outcome will pave way for next directional move.


Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty future shed around 13% & 14% of open interest respectively as long unwinding on expiry day.

Nifty futures rolled 78% into next contracts which were slightly lower than previous month rollover of 82% whereas Banknifty futures rolled 82% of open interest into next contracts which were in line with previous month’s rollover of 83%.

On options front, Nifty will start the first week of Oct expiry with maximum positions at 17000 CE and 16000 PE.


FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 3599 Cr in the cash segment, bought stocks futures worth Rs 1229 Cr and sold index futures worth Rs 1007 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3162 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 16900-17000; Supports 16750-16650

Banknifty Futures – Resistances 38000-38300; Supports 37000-37000


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