Daily Market Update- Equity 7 Dec 2022 | Globe Capital
07-Dec-2022
Daily Market Update- Equity 7 Dec 2022

Domestic benchmark Nifty index settled 54 points lower but near the day’s high after lackluster trading session, closed shop at 18642 levels.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 1 to 2%
  • European equity markets also ended in red
  • Asian equity markets are also trading in red
  • SGX Nifty is little changed, down 29 points (as on 8:13 AM)

 

News highlights from across the globe

  • U.S. stocks dipped as bank CEOs raised alarm over downbeat economic conditions. The S&P 500 fell 1.3% and the tech-heavy Nasdaq fell 1.7%. Yield on 10-year Treasuries declined one basis point to 3.56%.
  • Oil fell 3.6% amid broader market selloff and high interest rates. Gold futures rose 0.1%.

 

Important news updates from the domestic front

  • HDFC Asset Management Company: Promoter Abrdn Investment Management has sought required approvals from HDFC Trustee Company and SEBI to sell its entire 10.21% stake in the company and stop being a sponsor of HDFC Mutual Fund.
  • Infosys: Share buyback starts today at a price of Rs 1,850 apiece. The software services company will repurchase 5,02,70,270 equity shares, representing 1.19% of the total paid-up share capital, according to an exchange filing.
  • Ircon International: The company won an order for procurement of design, installation, testing, commissioning and certifying of signaling and telecommunication system from Maho junction to Anuradhapura by Sri Lanka Railways under Indian Line of Credit at $14.89 million (Rs 122 crore).
  • Vedanta: The company’s board is meeting on Dec. 9 to consider the proposal to offer non-convertible debentures aggregating up to Rs 500 crore in one or more tranches.
  • Apollo Hospitals Enterprise: The company issued a letter of comfort worth Rs 400 crore to Axis Bank on behalf of subsidiary Apollo Healthco. The company also issued NCDs worth Rs 105 crore with a coupon of 7.70%.
  • Siemens: The company emerged as the lowest bidder for the 9,000 HP Electric Locomotives project in Dahod, Gujarat.
  • Vodafone Idea: The company said preferential issue of optionally convertible debentures worth Rs 1,600 crore ATC Telecom Infrastructure lapsed due to absence of government response.
  • 5Paisa Capital: The boards of 5Paisa Capital Ltd. and IIFL  Securities Ltd. approved the transfer of IIFL Securities’ online retail trading business to 5Paisa.

 

Nifty Outlook

Domestic benchmark Nifty index settled 54 points lower but near the day’s high after lackluster trading session, closed shop at 18642 levels.

Broader markets performed in line with benchmark, Mid & Small cap index were down 0.5% and 0.16% respectively, leading to weak market breadth.

PSU Bank index outperformed, soared 1.26%, on back of Bank Baroda & PNB. IT, Metal, Pharma index were on the losing side.

Nifty index is having good support around 18550-500 levels, indicating higher possibility of a bounce from current levels. Having said that, lots of domestic event viz. RBI Monetary Policy, Election results will add volatility and keep traders at their toes.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty & Banknifty futures on price front whereas on open interest front both shed around 2% & 7% of open interest respectively.

Majority of F&O sectors settled lower although no significant activity was seen on open interest front.

On options front, call writing was seen at 18600 & 18800 strikes along with put writing at 18600 strikes and maximum positions at 18600 PE and 19000 CE closely followed by 18800 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 635 Cr in the cash segment, sold stocks futures worth Rs 1816 Cr and also index futures worth Rs 1533 Cr. DIIs too were net sellers in the cash segment to the tune of Rs 1533 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18850-18925; Supports 18680-18600

Banknifty Futures – Resistances 43600-43750; Supports 43300-43150

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