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

Positive handover from the global peers helped benchmark Nifty index to open with a gap on the higher side, it kept inching higher throughout the day and finally settled at 17274 levels after adding nearly 400 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled on flat to negative note.
  • European equity markets settled lower by  0.49% to 1.21%
  • Asian equity markets are trading in green
  • SGX Nifty is up 85 points (as on 8:30 AM)

 

News highlights from across the globe

  • Stocks in Japan and South Korea opened higher, while Australian equities quickly pared morning losses, tracking a rise in US futures that reversed a small decline in the S&P 500 on Wednesday.
  • OPEC+ decided to reduce daily oil production by two million barrels on Wednesday, sending the US oil benchmark to a three-week high.
  • The pound gained ground even after Fitch Ratings downgraded its UK outlook to negative.

 

Important news updates from the domestic front

  • Zee Entertainment Enterprises: The CCI has approved the merger of Zee Entertainment Enterprises with Sony Group‘s Indian unit with modifications. The scheme of amalgamation involves merging Zee Entertainment Enterprises and Sony Group’s Bangla Entertainment with Culver Max Entertainment—an indirect wholly owned subsidiary of Sony Group Corp.
  • Reliance Industries: Reliance Jio Infocomm, the telecom arm of the conglomerate, will start beta trials of its 5G services in four cities—Delhi, Mumbai, Kolkata and Varanasi—from Oct. 5, and offer a ‘Welcome Offer’ for its existing users in these circles, which can be availed for by invitation.
  • JSW Energy: JSW Neo Energy, a wholly owned subsidiary of the company, has signed a MoU with the Maharashtra government for setting up a 960 MW hydro pumped storage project at Pane Pumped Storage Project in Raigarh.
  • Adani Enterprises has incorporated two wholly owned subsidiaries—Alwar Alluvial Resources for manufacturing and processing of minerals, and Adani Disruptive Ventures.
  • Tata Steel, through wholly owned subsidiary T.S. Global Holdings Pte Ltd, has concluded the divestment of its 19% equity stake in AI Rimal to Oman National Investments Development Company on Oct. 3, 2022, thereby reducing its shareholding from 70% to 51% in Al Rimal.
  • Godrej Consumer Products said it expects to deliver high single-digit growth in India, with 3-years CAGR close to double-digits.
  • Tata Motors released production, domestic sales and export figures for the July-September 2022 period. Compact UVs Nexon and Punch led the domestic sales at 79,082 units, followed by compact segment at 48,787 units.
  • Bajaj Finance: The lender sees AUM rise 31% YoY in July-September quarter. AUM rose to Rs 2.18 lakh crore as of Sept. 30, 2022, compared with Rs 1.67 lakh crore a year ago. Deposits rose 37% from a year ago to Rs 39,400 crore.

 

Nifty Outlook

Positive handover from the global peers helped benchmark Nifty index to open with a gap on the higher side, it kept inching higher throughout the day and finally settled at 17274 levels after adding nearly 400 points to its previous closing values.

Buying was seen across the board, Mid and Small cap index soared 3.10% & 1.76% respectively. Resultant, market breadth was heavily inclined towards the advancing side as over 4 advances were recorded for every declining share at NSE.

All sectoral indices settled higher. Pvt Banks and Metal index were the top performers, rose over 3% each followed by PSU banks, IT and Fin Service index that gained nearly 3% each.

Going ahead, Nifty index to trade with positive bias till it is trading above 17100 levels and expect it to test 17450-17500 levels in immediate near term.

 

Derivatives Overview & Outlook

On Tuesday, both Nifty & Banknifty futures shed around 6.5% & 5% of open interest respectively as short covering.

All F&O sectors settled higher. Amongst them, Banking, Media, Textile and Realty stocks witnessed maximum addition of long positions.

On options front, put writing was seen at multiple strikes and maximum positions are at 17000 PE and 17500 CE.

 

FII & DII Trading Activity

On Tuesday, FIIs bought stocks worth Rs 1345 Cr in the cash segment, bought stocks futures worth Rs 3091 Cr and also bought index futures worth Rs 2181 Cr. DIIs too were net buyers in the cash segment to the tune of Rs 946 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17440-17550; Supports 17200-17100

Banknifty Futures – Resistances 39600-40000; Supports 39000-38700

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