Daily Market Update- Equity 6 July 2022 | Globe Capital
06-Jul-2022
Daily Market Update- Equity 6 July 2022

Selloff witnessed in the later half of the session pulled the benchmark index towards negative territory, due to which the benchmark index settled at 15810 levels, down 24 points.

Overview and Outlook

Global Market update

  • US equity markets ended mix on Tuesday with Nasdaq gaining 1.75% while Dow Jones losing 0.42%
  • European equity markets ended steeply lower, down by average over 2%
  • Asian equity markets are trading largely trading in red
  • SGX Nifty is little changed, up 41 points (as on 8:21 AM)

 

News Highlights from across the globe

  • Stocks declined in Asia amid fears of an economic downturn, even as the US dollar hovered at its highest level in more than two years.
  • The S&P 500 ended slightly higher on Tuesday as investors kept their focus on the growth trajectory of the US economy, and the tech-heavy Nasdaq closed higher while the Dow slipped.

 

Important news & Earnings Updates from the domestic front

  • ONGC/Oil India/RIL: Crude oil rebounded above $100/barrel as banks including Goldman Sachs said a plunge driven by fears a recession will hurt demand was overdone.
  • IOCL/BPCL/HPCL: Ethanol used for blending with petrol to the extent of 15% will be exempted from excise duty. Diesel blending will also be exempt up to 20%.
  • Marico: It expects “mid-single-digit” decline in domestic volume for the quarter ended June 30 as steep price hikes led to downtrading across two of its largest brands.
  • Biocon: The company has received EU GMP certification for its new monoclonal antibodies drug substance manufacturing facility in Bengaluru, following a GMP inspection in April 2022.
  • Bajaj Finance: Assets under management rose 3.55% month-on-month to Rs 2.04 lakh crore in the quarter ended June, even as net liquidity surplus was Rs 11,550 crore.
  • J Kumar Infraprojects: The company has received letter of acceptance from BMC for building Sewer Tunnel-Phase I from Don Bosco to New Malad IP. The project is worth Rs 571.01 crore, and the company has 60% stake in the JV which comes to Rs 342.60 crore.

 

Nifty Outlook

Selloff witnessed in the later half of the session pulled the benchmark index towards negative territory, due to which the benchmark index settled at 15810 levels, down 24 points.

Broader markets ended on a flattish note, Mid & Small cap index settled 0.29% and 0.07% lower. Market breadth was also flat.

Majority of sector gauges tracked at NSE settled in red, Media & IT index lost maximum, down 0.9% and 0.7% respectively.

Nifty index managed to break the trading range 15600-900 levels on the higher side in day trade but failed to hold around those levels till the end to finally settle on a flattish note.

 

Derivatives overview and outlook

Nifty July futures ended at 15,766, a discount of 44.85 points. Nifty July futures rose 2.03% and 4,924 shares in Open Interest.

Nifty Bank July futures ended at 33,770, a discount of 45.9 points. Nifty Bank July futures shed 11.90%, 11,992 shares in Open Interest.

FII & DII Trading Activity

Foreign institutional investors (FIIs) were net buyers to the tune of Rs 1,295.84 crore, whereas domestic institutional investors (DIIs) were net sellers for the first time since April 11, selling shares worth Rs 257.59 crore on July 5, as per provisional data available on the NSE.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 15900-16020; Supports 15650-15550

Banknifty Futures – Resistances 34000-34400; Supports 33400-33000

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