Daily Market Update- Equity 5 Dec 2022 | Globe Capital
05-Dec-2022
Daily Market Update- Equity 5 Dec 2022

Nifty index settled 116 points lower at 18696 levels after a lackluster trading session Nifty index traded in narrow range for most part of the session.

Overview and Outlook

Global Market Update

  • US equity markets ended flat on Friday
  • European equity markets also ended on a flattish note
  • Asian equity markets are trading in green
  • SGX Nifty is little changed, up 37 points (as on 8:36 AM)

 

News highlights from across the globe

  • U.S. jobs data was stronger than expected on Friday, raising fears that the Federal Reserve still may not have room to slow down its hikes. A surge in Treasury 10-year yields fizzled out.
  • Stocks opened on a cautious note in Asia as investors weighed the impact of a hot US jobs report and an accelerated shift toward reopening of the Chinese economy.
  • Oil advanced after OPEC+ left oil production steady, sanctions on Russian crude took effect and China’s loosening of Covid restrictions improved the outlook for demand.

 

Important news updates from the domestic front

  • Ceat/MRF: The NCLAT disposed of all 14 appeals against the CCI order against certain tyre manufacturers on cartelisation of the industry. The tribunal remitted the matter back to CCI to re-examine arithmetic errors in calculation.
  • UltraTech Cement: The company commissioned 1.8 MTPA greenfield grinding capacity at Dhule Grinding Unit, Maharashtra, and 1.8 MPTA brownfield clinker-backed second grinding capacity at Dhar Cement Works, Madhya Pradesh.
  • Ion Exchange: The company has won a contract Rs 343.36 crore from Indian Oil Corporation for designing, engineering, manufacturing, supply, erection, testing, pre-commissioning, commissioning, performance guarantee test run and operation and maintenance for five years of zero liquid discharge plant at Panipat refinery.
  • Hindustan Aeronautics: The company received an income tax refund order worth Rs 427.45 crore.
  • State Bank of India: The bank raised Rs 10,000 crore through its maiden infrastructure bond issuance at a coupon rate of 7.51%.

 

Nifty Outlook

Nifty index settled 116 points lower at 18696 levels after a lackluster trading session Nifty index traded in narrow range for most part of the session.

Broader markets outperformed benchmark as Mid & Small cap index gained 0.6% each, leading to strong market breadth.

Majority of sector gauges tracked at NSE settled in red, Auto index lost maximum, down over 1% while Media & Realty index were at the top of the tally, up 1.22% and 0.94% respectively.

We reiterate our view, Nifty index is well placed on short as well as long term charts indicating bullish bias to persist. Hence, dips can be utilized to take fresh long positions till 18500 is held on the down side.

 

Derivatives Overview & Outlook

On Friday, both Nifty and Banknifty futures shed around 7% & 2% of open interest respectively as long unwinding.

Majority of F&O sectors settled higher. Amongst them FMCG and Media stocks witnessed maximum addition of long positions whereas some short buildup was seen among Auto stocks.

On options front, call writing was seen at multiple strikes along with some put additions at 18700 strikes and maximum positions are at 19000 CE and 18700 PE.

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth 16778 Cr in the cash segment, sold stocks futures worth Rs 1954 Cr and also sold index futures worth Rs 1581 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1335 Cr during the week.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18900-19000; Supports 18760-18680

Banknifty Futures – Resistances 43550-43700; Supports 43150-43000

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