Daily Market Update- Equity 31 Oct 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 31 Oct 2022

The domestic benchmark Nifty index settled on a flattish note after a lackluster trading session, closed shop at 17786 levels, up nearly 50 points or 0.28%.

Overview and Outlook

Global Market Update

  • US equity markets ended higehr by 2.87%
  • European equity markets ended on a flattish note
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is up 166 points (as on 8:13 AM)


News highlights from across the globe

  • Asian stocks gained while US equity futures traded lower at the start of the week as investors await interest rate decisions from central banks including the Federal Reserve.
  • Shares climbed in Japan, South Korea and Australia, while contracts for Hong Kong advanced earlier after stocks on Wall Street rallied Friday. The U.S. Dollar made little advances against most major currencies, indicating a caution among traders.
  • U.S. stocks rose as Apple Inc.’s earnings report buoyed technology shares.
  • Oil rallied as U.S. fuel stockpiles dropped and exports rose to a record, pointing to a robust demand despite fears of a global slowdown.


Important news updates from the domestic front

  • Hero MotoCorp: The two-wheeler manufacturer registered retail growth of 20% during the festive period this year over the corresponding period of last year.
  • Steel Authority of India: The company signed an agreement with Airport Authority of India to facilitate commercial operations at Rourkela airport under RCS UDAN scheme.
  • Astec Lifesciences: The company appointed Madhur Gundecha as the Chief Financial Officer, with effect from Oct. 28, 2022.
  • Vedanta: The board approved the expansion of rolled product capacity at subsidiary Bharat Aluminium Company to 180 KTPA from existing 50 KTPA at a revised cost of Rs 595 crore, and expansion of its smelter capacity to 994 KTPA from existing capacity of 580 KTPA at a revised cost of Rs 8,094 crore.
  • Solar Industries: The board of the company will consider on Nov. 4 the offer, issue and allotment of unsecured redeemable NCDs of up to Rs 100 crore on private placement basis, in one or more tranches.
  • Tata Power: The company appointed former finance secretary Rajiv Mehrishi as an independent director.


Nifty Outlook

The domestic benchmark Nifty index settled on a flattish note after a lackluster trading session, closed shop at 17786 levels, up nearly 50 points or 0.28%.

Broader market performance was mix, Mid cap index trading in line with benchmark, down 0.26% while Small index underperformed, down 1%.

Barring Auto & Oil & Gas index, all sector gauges tracked at NSE settled in red, it was up 1.63% & 1.03% respectively on back of Maruti that soared over 5% & Reliance that was up over 3%. While Metal & Pharma indexes were at the seller’s radar, down over 1% each.

Nifty index is well placed on daily chart, indicating bullish bias to continue, 18000 is the next up side level that we are eyeing at in the immediate near term.


Derivatives Overview & Outlook

On Friday, Nifty futures remained almost unchanged on the price front and added around 4% of open interest whereas Banknifty futures added around 8% of open interest as short buildup.

Majority of F&O sectors settled lower. Amongst them, Metals, IT, Textile and Chemical stocks witnessed maximum addition of short positions whereas long buildup was seen among Oil & Gas and Auto stocks.

On options front, put writing was seen at multiple strikes along with call writing at 18000 and higher strikes and maximum positions are at 18200 CE and 17700 PE.


FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 5975 Cr in the cash segment, bought stocks futures worth Rs 4915 Cr and also bought index futures worth Rs 5242 Cr. On the other hand, DIIs sold stocks worth Rs 1240 Cr in the cash segment during the week.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17900-18000; Supports 17750-17650

Banknifty Futures – Resistances 41600-42000; Supports 40800-40450


Earnings Today – Tata Steel, Larsen & Toubro, Bharti Airtel, Supreme Industries, Motherson Sumi Wiring India, Castrol India, Timken India, Asahi India Glass, LT Foods, Data Patterns (India), Equitas Small Finance Bank, GHCL, Saregama India, TCI Express


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