Daily Market Update- Equity 4 Nov 2022 | Globe Capital
04-Nov-2022
Daily Market Update- Equity 4 Nov 2022

Nifty index ended flat after lackluster trading session, closed shop at 18052 levels, down 30 points from its previous closing levels.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 0.46 to 1.73%
  • European equity markets were mix, FTSE gained 0.6% while CAC & DAX ended in red
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:16 AM)

 

News highlights from across the globe

  • US stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.

 

Important news updates from the domestic front

  • Wipro: The company appointed Amit Choudhary as chief operating officer. He will manage global business operations, delivery excellence, CIO, CISO, and enterprise risk management functions.
  • Hero MotoCorp: The world’s largest two-wheeler company recorded standalone profit at Rs 716 crore for the quarter ended September FY23, down 10% YoY due to lower other income and weak operating performance.
  • Vodafone Idea: The telecom operator posted loss of Rs 7,595.5 crore for the quarter ended September FY23, widening from loss of Rs 7,296.7 crore in previous quarter as EBIT loss rose to 1,558.2 crore from Rs 1,475.9 crore and EBITDA margin dropped to 38.6% from 41.6% during the same period. Tepid top line also impacted profitability.
  • Adani Enterprises: The company recorded a healthy 122% year-on-year growth in consolidated profit at Rs 432.3 crore for the quarter ended September FY23, driven by strong operating as well as top line performance.
  • Persistent Systems: The company entered into a partnership with Software AG to develop joint solutions for enterprise clients.
  • SKF India: The board approved investment of investment of Rs 4.3 crore for 26% in a wind and solar power project SPV in Bengaluru, and additional investment of Rs 1.5 crore for expansion of a captive solar power plant in Pune.
  • Cochin Shipyard: The company bagged an international order for two commissioning service operation vessels from a European Client to be used for wind farm installations. The client has the option order four more such vessels within one year.
  • Welspun Corp: The company’s board approved acquisition of entire share capital of newly incorporated Propel Plastic Products at a fair value consideration of Rs 10,000.

 

Nifty Outlook

Nifty index ended flat after lackluster trading session, closed shop at 18052 levels, down 30 points from its previous closing levels.

Broader market performance was in line with benchmark, Mid & Small cap index settled on a flat to positive note, due to which market breadth was also flat.

Majority of sector gauges tracked at NSE settled in green, amongst them PSU Bank index outperformed other sector gauges as it soared 2.52% while IT index was at the bottom, down 1.18%.

Nifty index is trading in narrow range 18000-18200 levels; an either side break will lead to next directional move in that direction.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty & Banknifty futures on price front whereas on open interest front both added around 3.4% & 10% of open interest respectively.

On sectoral front, long buildup was seen among Chemicals and Banking stocks whereas some short buildup was seen among IT, Oil & Gas and Capital Goods stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 18000 PE and 19000 CE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 678 Cr in the cash segment, sold stocks futures worth Rs 46 Cr and also sold index futures worth Rs 1008 Cr. On the other hand, DIIs sold stocks worth Rs 732 Cr in the cash segment.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18165-18230; Supports 18000-17900

Banknifty Futures – Resistances 41600-41825; Supports 41200-40980

 

Earnings Today – Akzo Nobel India, Computer Age Management Services, Capri Global Capital, Chemplast Sanmar, Cipla, City Union Bank, Cummins India, EKI Energy Services, Elgi Equipments, Escorts Kubota, Fineotex Chemical, Gillette India, Go Fashion (India), Godrej Agrovet, Harsha Engineers International, Infibeam Avenues, JSW Holdings, Mahindra Logistics, Marico, Minda Corporation, Nava, Paradeep Phosphates

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