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

Tracking negative cues from the global peers, benchmark Nifty index opened with a gap on the negative side, it kept drifting lower throughout the day and finally it settled at 16887 levels after a cut of over 200 points from its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 2.27 to 2.66%
  • European equity markets ended on positive note, up by  0.22% to 0.79%
  • Asian equity markets are trading in green
  • SGX Nifty is up over 250 points (as on 8:30 AM)

 

News highlights from across the globe

  • U.S. stocks opened October on a strong note as Treasury yields took a break from their seemingly incessant surge. Yield on 10-year Treasuries dipped 19 basis points to 3.64%.
  • Oil rose 5% with OPEC+ expected to announce a supply cut soon.

 

Important news updates from the domestic front

  • HDFC: In the Sept quarter, the lender sold individual loans to the tune of Rs 34,513 crore, against Rs27,199 crore in the previous year, while gross income from dividend rose to Rs 1,360 crore, compared to Rs 1,171 crore a year ago.
  • Vedanta: The mining major released production figures for the second quarter of the current fiscal. Total alumina production increased 2% to 5.84 lakh tonnes in the quarter ended Sept. 2022, whereas refined zinc production increased 16% to 1.89 lakh tonnes.
  • Mahindra & Mahindra Financial Services: The insurer recorded 82% growth in disbursements in the quarter ended Sept. 30, 2022. Collection efficiency was at 98% at the end of last month.
  • Marico: The company posted low single-digit volume growth in its India business during the second quarter of the current fiscal, with the 3-year CAGR in high single digits. Consolidated revenue in the quarter grew in low single digits on a year-on-year basis.
  • Britannia: A wholly owned subsidiary of the company acquired control of Kenafric Biscuits, a private limited liability company incorporated in Nairobi, Kenya by subscribing to 51% of its equity share capital, and acquired 100% of the equity share capital of Catalyst Britania Brands.
  • Dilip Buildcon: The company, through the RBL-DBL joint venture, has received the letter of acceptance for Surat metro rail project worth Rs 1,061 crore from Gujarat Metro Rail Corporation.
  • NCC: The company received a new order for Rs 393 crore (exclusive of GST) in September, pertaining to its building division.
  • Adani Green: The company has incorporated three new step down subsidiaries to to generate, develop, transform, distribute, transmit, sale, supply any kind of power or electrical energy using wind energy, solar energy or other renewable sources of energy.
  • Hindustan Zinc: The company recorded a growth of 16% in production of refined zinc, and 21% in refined lead at the end of Sept. quarter of the current fiscal. Total mined metal production increased 3% during this period.
  • KEC International: The company has secured new orders worth Rs 1,407 crore across its transmission and distribution, civil, railways and cables businesses.

 

Nifty Outlook

Tracking negative cues from the global peers, benchmark Nifty index opened with a gap on the negative side, it kept drifting lower throughout the day and finally it settled at 16887 levels after a cut of over 200 points from its previous closing values.

Mid cap index fell in line with benchmark, lost 1.28% while Small cap index outperformed the benchmark as it was down just over half-a-percent.

All sectoral indices, barring Pharma, settled in red. Metal was at the bottom of the tally, down over 3% followed by PSU banks, FMCG and Auto index that were down 2% to 2.67%. Pharma index was top performer, gained over 1%.

Nifty index is trading around its 200 EMA on daily charts. Going ahead, Nifty index is likely to trade in a range 16750-17200 levels before next directional move.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 6% of open interest as short buildup whereas Banknifty future remained almost unchanged on open interest front.

Majority of F&O sectors settled lower. Amongst them, Banking, Oil & Gas, Finance and Realty stocks witnessed maximum addition of short positions.

On options front, call writing was seen at multiple strikes and maximum positions are at 17000 CE and 16000 PE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 591 Cr in the cash segment, sold stocks futures worth Rs 2119 Cr and also sold index futures worth Rs 1170 Cr. DIIs were net sellers in the cash segment to the tune of Rs 423 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17000-17150; Supports 16760-16650

Banknifty Futures – Resistances 38550-38850; Supports 37900-37550

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