Daily Market Update- Equity 8 July 2022 | Globe Capital
08-Jul-2022
Daily Market Update- Equity 8 July 2022

Tracking global cues, Nifty index registered gap up opening, kept the bullish momentum rolling till the end to close near the day’s peak at 16132 levels, up 143 points.

Overview and Outlook

Global Market update

  • US equity markets settled higher in range 1.12 – 2.28%
  • European equity markets were up in range 1.14 to nearly 2%
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is up 132 points (as on 8:20 AM)

 

News Highlights from across the globe

  • Stocks in Asia caught a modest tailwind Friday from a US rally sparked by hopes that policy makers can get inflation under control without causing a global economic downturn. Asia-Pacific markets opened higher as investors look ahead to the release of US jobs data for June.
  • Wall Street benchmarks ended up on Thursday, with the S&P 500 and Nasdaq recording their fourth successive higher closes, as traders leaned in to US equities after the Federal Reserve hinted at a more tempered program of interest rate hikes.

 

Important news & Earnings Updates from the domestic front

 

  • Mahindra & Mahindra: The company has agreed to sell stake in its new electric vehicle arm to British International Investment Plc.
  • Coforge: The company is in alliance with Newgen Software to help organisations transform current processes, enhance operational efficiency, and gain a competitive edge over peers.
  • Vedanta: The company will acquire Athena Chhattisgarh Power, a 1,200 MW coal-based power plant, for Rs 564.67 crore.
  • PowerGrid: CBI has arrested the company’s executive director BS Jha and five others in connection with a bribery case. Rs 93 lakh was recovered from Jha’s residence in Gurugram.
  • Dr Reddy’s: The US Food and Drug Administration has issued a Form 483 with two observations to Dr Reddy’s formulations manufacturing facility in Andhra Pradesh.
  • Tata Motors: JLR sales fell 37% year-on-year to 78,825 units in quarter ended June 30 due to a global chip shortage, covid lockdowns in China, and new model transition of Range Rover Sport.
  • Alkem Laboratories: The company has received Form 483 with one observation from the U.S. FDA with respect to ANDA filed for products to be manufactured at its plant in Indore.

 

Nifty Outlook

Tracking global cues, Nifty index opened with a huge gap on the higher side, kept the bullish momentum rolling till the end to close shop near the day’s peak at 16132 levels, up 143 points.

Broader markets performed in line with benchmark, Mid & Small cap index gained 1.19% and 1.57% respectively, leading to fairly strong market breadth.

Barring FMCG index, all other sector gauges tracked at NSE settled in green. Metal index gained maximum, up 3.42% after China announces $220 bn Stimulus package. Apart from this Realty and Bankex also performed quite well, gained 2.6% and 1.74% respectively.

Nifty index has posted good recovery after breaking out from 15600-900 trading range. Going ahead, sustenance above 16200 levels is the key for further up move towards 16500 and higher levels.

 

FII & DII Trading Activity

Foreign institutional investors (FIIs) have offloaded shares worth Rs 925.22 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 980.59 crore on July 7, as per provisional data available on the NSE.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 16200-16340; Supports 16040-15920

Banknifty Futures – Resistances 35300-35500; Supports 34900-34450

 

Important Earnings Today – TCS

 

AGM today: Havells India, IIFL Finance, NELCO

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