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

Benchmark Nifty index settled higher at 18117 levels after adding 65 points to its previous closing values in an otherwise lackluster trading session.

Overview and Outlook

Global Market Update

  • US equity markets were up by 1.3%
  • European equity markets were up in range 2 to 2.75%
  • Asian equity markets are trading in green
  • SGX Nifty is up over 100 points (as on 8:32 AM)

 

News highlights from across the globe

  • Investor appetite soured, sending US equity futures and commodities lower after China affirmed its Covid-Zero policy stance. The dollar advanced against major currencies on its appeal as a haven asset.
  • Oil slumped around 2%, leading falls in commodities on the prospect of weaker demand from China.

 

Important news updates from the domestic front

  • TVS Motor Company: The board approved issue of zero-coupon debentures up to Rs 310 crore to subsidiary Sundaram Auto Components.
  • Cipla: The board decided not to proceed with the transfer of India-based U.S. business undertaking.
  • Escorts Kubota: The company will buy rough terrain crane business and the associated equipment and parts from Tadano Escorts India for Rs 16.59 crore. The company will also sell 49% stake in Tadano.
  • Birlasoft: Dharmender Kapoor resigns as managing director and chief executive officer. Company appointed Angan Guha as CEO and MD, effective Dec. 1, 2022.
  • IDFC First Bank: The board approved plan to raise Rs 4,000 crore Tier-1 capital via issuance of equity share.
  • Reliance Industries: Veteran banker K.V. Kamath has been appointed non-executive chairman of the company’s financial services arm Reliance Strategic Investments, which is soon to be demerged and listed as Jio Financial Services.
  • Indian Railway Finance Corporation: The board will convene on Nov. 10, 2022 to consider interim dividend for the current financial year.
  • Bank of India: The board approved Raising of Tier-1 capital via issue of AT-1 bonds worth Rs 2,500 crore.
  • Mahanagar Gas: The company increased CNG price by Rs 3.50 per kg, and domestic PNG price by Rs 1.50 per SCM in its license areas spread in and around Mumbai.

 

Nifty Outlook

Benchmark Nifty index settled higher at 18117 levels after adding 65 points to its previous closing values in an otherwise lackluster trading session.

Mid cap index traded in line with benchmark while Small cap index underperformed the benchmark. Resultant, market breadth was almost flat.

Sectoral performance was mix. Metal index was at the top of the tally, soared over 4% followed by Media and PSU bank index that was up over 1% each whereas Pharma index was at the bottom of tally, down over 1%.

Nifty index is trading in narrow range 18000-18200 levels for past couple of sessions; an either side break will lead to next directional move in that direction.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty & Banknifty futures on price front whereas on open interest front both added around 2.5% & 3% of open interest respectively.

On sectoral front, long buildup was seen among Auto, Cement and Metal stocks whereas some short buildup was seen among Textile, Realty and Textile stocks.

On options front, put writing was seen at 18000 strikes along with call writing at multiple strikes and maximum positions are at 18000 PE and 19000 CE.

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 16715 Cr in the cash segment, bought stocks futures worth Rs 1409 Cr and also bought index futures worth Rs 620 Cr. On the other hand, DIIs sold stocks worth Rs 4496 Cr in the cash segment during the week.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 18300-18360; Supports 18100-18000
Banknifty Futures – Resistances 41650-41950; Supports 41200-40980

 

Earnings Today – Aditya Birla Capital, Affle (India), Alkyl Amines Chemicals, Automotive Axles, Bannari Amman Sugars, BLS International Services, Bharat Petroleum Corporation, Ceat, Cera Sanitaryware, Coal India, Divi’s Laboratories, Endurance Technologies, India Cements, KEC International, K.P.R. Mill, Mold-Tek Packaging, One 97 Communications, PB Fintech, Privi Speciality Chemicals, RateGain Travel Technologies,

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