Daily Market Update- Equity 7 Oct 2022 | Globe Capital Market LTD.
Daily Market Update- Equity 7 Oct 2022

Benchmark Nifty index settled higher at 17332 levels after adding 60 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled lower by 1.02% to 1.30%.
  • European equity markets settled lower by  0.37% to 0.82%
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:30 AM)


News highlights from across the globe

  • Stocks in Asia fell in early trading following declines in the US as investors awaited a pivotal monthly payrolls report
  • Equities dropped in Australia, Japan and South Korea, where Samsung Electronics Co. slid after the Korean chipmaker reported a decline in profit for the first time since late 2019.
  • Oil topped $88 a barrel in New York and Brent traded up near $95, extending gains a day after the OPEC+ alliance announced its biggest production cut since 2020.


Important news updates from the domestic front

  • Dabur said its domestic business had a “steady performance” and is expected to report “consolidated revenue growth in mid-single digit” for the second quarter ended September 2022.
  • Titan said it witnessed healthy double-digit growth across most businesses with overall sales growing 18% annually during the quarter ended September 2022. The outlook for the festive season continues to be optimistic across categories, it added.
  • Hindalco/Hindustan Copper/Vedanta: London Metal Exchange began a formal discussion on a potential ban on new Russian metal.
  • Nykaa entered into a strategic alliance with Middle East-based Apparel Group to recreate omni-channel beauty retail platform in the GCC region.
  • Hero MotoCorp to launch its first electric scooter Vida.
  • Samvardhana Motherson opened a new facility at Tanger Med Industrial Platform, replacing an existing one in Morocco.
  • Yes Bank has reappointed Prashant Kumar as the Managing Director and Chief Executive Officer for a period of three years, effective from Oct. 06, 2022.
  • HCLTech has expanded its strategic partnership with Google Cloud with new capabilities and service offerings to expedite enterprise migration to Google Cloud.
  • NTPC and GE Gas Power signed MoU for demonstrating hydrogen co-firing in gas turbines to further decarbonise power generation.
  • Biocon: European Directorate for the Quality of Medicines & HealthCare issued a list of deficiencies related to the company’s API manufacturing site in Bangalore after a GMP inspection from Sept. 12-14. No deficiencies were marked critical.


Nifty Outlook

Benchmark Nifty index settled higher at 17332 levels after adding 60 points to its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index rose 1.16% & 1.24% respectively. Resultant, market breadth was inclined towards the advancing side.

Majority of sectoral gauges tracked at NSE settled in green. Metal index was at the top of the tally, gained over 3% followed by Media and Realty index that rose over 2% each.

Going ahead, we reiterate our bullish view on Nifty index till it is holding above 17000 levels. Any dips till that level can be utilized to initiate fresh long positions.


Derivatives Overview & Outlook

Yesterday, both Nifty & Banknifty futures remained almost unchanged on the price front whereas on open interest front Nifty futures added around 5% of open interest and Banknifty futures shed around 4% of open interest.

On sectoral front, long buildup was seen among Cement, Banking, Capital Goods and Chemical stocks whereas some short covering was seen among Media and Power stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 17000 PE and 17500 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 279 Cr in the cash segment, bought stocks futures worth Rs 96 Cr and sold index futures worth Rs 175 Cr. DIIs were net sellers in the cash segment to the tune of Rs 44 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

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

Banknifty Futures – Resistances 39650-39950; Supports 39000-38700


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