Daily Market Update- Equity 6 Dec 2022 | Globe Capital
06-Dec-2022
Daily Market Update- Equity 6 Dec 2022

Benchmark Nifty index settled on a flat note, closed shops at 18701 levels, up just 5 points after a lackluster trading session.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 1.4 to 1.9%
  • Barring FTSE that ended flat, other European equity markets ended in red
  • Asian equity markets are trading in red
  • SGX Nifty is down over 100 points (as on 8:26 AM)

 

News highlights from across the globe

  • Asian stocks followed US shares lower after unexpectedly strong services data bolstered the case for the Federal Reserve to deliver higher interest rates.
  • Oil fell 2.7% on weaker equity market conditions and sell-off ahead of the end of the year. Gold futures fell 1.6%.

 

Important news updates from the domestic front

  • Adani Enterprises: The company closed its open offer to buy 26% stake in NDTV, becoming its biggest shareholder.
  • Bajaj Consumer Care: The board of the company will meet on Dec. 9 to consider and approve a proposed share buyback plan.
  • Ahluwalia Contracts (India): The company secured an order for construction of public stadium with 5,000 seating capacity public auditorium at Guwahati for Rs 174.88 crore from Assam government.
  • Vedanta: The company clarified that it has received the Odisha government’s in-principle approval to provide hot metal to aluminium-dependent industries by inviting them to set up their plants in the vicinity of Vedanta’s primary aluminium plant at Jharsuguda.
  • IRB Infrastructure Developers: The company and its private InvIT arm reported 39% increase in toll collection figures in November 2022 on year-on-year basis at Rs 365.95 crore.

 

Nifty Outlook

Benchmark Nifty index settled on a flat note, closed shops at 18701 levels, up just 5 points after a lackluster trading session.

Broader markets outperformed the benchmark, leading to positive market breadth.

Performance on the sectoral front was mix. Nifty Metal index was at the top of the tally, soared nearly 2% followed by PSU bank index that was up over 1%.

Nifty index is likely to be volatile in coming sessions. On Tuesday, it will react to Gujarat and Himachal Pradesh assembly exit polls. While later it will move on RBI’s MPC outcome on interest rate and Assembly elections results outcome scheduled on 7th & 8th Dec 2022 respectively.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty futures on price as well as on open interest front while Banknifty futures added around 7% of open interest as long buildup.

On sectoral front, long buildup was seen among Metal, Finance and Banking stocks whereas some short buildup was seen among Cement and Pharma stocks.

On options front, call writing was seen at 18700 strikes along with put writing at 18700 & 18500 strikes and maximum positions at 18700 PE and 19000 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1139 Cr in the cash segment, sold stocks futures worth Rs 866 Cr and bought index futures worth Rs 240 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2608 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18900-19000; Supports 18700-18600

Banknifty Futures – Resistances 43700-44000; Supports 43350-43150

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