Daily Market Update- Equity 8 Dec 2022 | Globe Capital
08-Dec-2022
Daily Market Update- Equity 8 Dec 2022

Nifty index settled near the day’s low due to steep selloff witnessed in the final half an hour of trading, closed shop at 18560 levels, down 82 points from its previous closing levels.

Overview and Outlook

Global Market Update

  • US equity markets settled on flat to negative note
  • European equity markets ended in red
  • Asian equity markets are trading mix
  • SGX Nifty is little changed (as on 8:21 AM)

 

News highlights from across the globe

  • U.S. stocks were caught in a volatile session as traders were worried by the prospects of an impending recession amid tight Federal Reserve policy. The added danger of Russia’s refusal to promise not to use nuclear weapons has also spooked markets.
  • The 2-10 Treasury yield curve inverted by 83 basis points, the biggest inversion in about four decades, signaling increasing concerns about a potential recession.

 

Important news updates from the domestic front

  • Macrotech Developers: Launches QIP consisting of ‘offer for sale’ to meet minimum public shareholding. The promoter shareholding currently stands at 82.2%. Floor price has been set at Rs 1,022.75 per share, 4.17% lower than the current market price.
  • HCL Tech: The company tied up with Intel and Mavenir to develop and deliver private 5G enterprise network solutions for communication service providers and broader cross-vertical enterprises.
  • Axis Bank: The bank will raise Rs 12,000 crore via unsecured, rated, listed, subordinated, taxable, non-convertible, Basel III compliant Tier II bonds with a green shoe option of Rs 11,000 crore.
  • Inox Wind: Promoters infused Rs 623 crore in the company, which was used to repay Gujarat Fluorochemicals.
  • ONGC: The petroleum ministry appointed Arun Kumar Singh as chairman of the company for three years, with effect from Dec. 7. The company also signed an MoU with Shell for carbon capture, utilisation and storage.
  • Tata Consultancy Services: The company entered a partnership with BT Group to transform the latter’s legacy IT estate.
  • Bank of India: The bank hiked repo-based lending rates by 35 basis points with effect from Dec. 7.
  • Triveni Engineering and Industries: Promoter Dhruv Manmohan Sawhney to sell 7.03% stake at Rs 280-285 per share, which is a 3.04-4.75% discount to closing price on Dec. 7.

 

Nifty Outlook

Nifty index settled near the day’s low due to steep selloff witnessed in the final half an hour of trading, closed shop at 18560 levels, down 82 points from its previous closing levels.

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

Barring FMCG index that was up nearly 1%, all other major sector gauges tracked at NSE settled in red, Media & Realty index lost maximum, down over 1% each.

Markets will remain volatile on Thursday due to derivatives expiry & the outcome of Gujarat & Himachal Pradesh election results. On technical front, 18440 will act as immediate support.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty & Banknifty futures on price front as well as on open interest front.

Majority of F&O sectors settled lower. Amongst them, Realty, Telecom and Finance stocks witnessed maximum addition of short positions.

On options front, call writing was seen at 18600 & 18700 strikes along with put writing at 18400 & 18350 strikes and maximum positions at 18500 PE and 18800 CE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 1242 Cr in the cash segment, sold stocks futures worth Rs 918 Cr and also sold index futures worth Rs 1218 Cr. DIIs were net buyers in the cash segment to the tune of Rs 389 Cr.

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