Daily Market Update- Equity 9 Sep 2022 | Globe Capital
09-Sep-2022
Daily Market Update- Equity 9 Sep 2022

Nifty index settled near the day’s top after volatile trading session, closed shop tad below 17800 levels, up 174 points on the weekly expiry day.

Overview and Outlook

Global Market update

  • US equity markets were up by 0.6%
  • European equity ended flat
  • Asian equity markets are trading in green
  • SGX Nifty is up over 100 points (as on 8:11 AM)

 

News Highlights from across the globe

  • Wall Street’s main indices posted gains on Thursday mainly lifted by financial institutions and healthcare companies, as investors digested hawkish remarks from policymakers that cemented bets of a large interest rate hike later this month.
  • The euro surged to the highest level in more than a week after the European Central Bank raised rates 75 basis points Thursday.

 

Important news & Earnings Updates from the domestic front

  • NTPC: The company has entered into agreement to supply renewable energy power to the armed forces. This is the first agreement by Indian armed forces for sourcing power from renewable energy sources.
  • Vodafone Idea: The government will acquire a stake in Vodafone Idea after the stock price of the company stabilises at Rs 10 or above, PTI reported. The company’s board has offered a stake to the government at a par value of Rs 10 per share.
  • KRBL/LT Foods/GRM Overseas: The Indian government has imposed a 20% duty on exports of unmilled rice.
  • Mahindra & Mahindra: The company has unveiled the XUV400, its first all-electric SUV. The car will be initially sold in 16 cities including Mumbai, Bengaluru, Chennai and Delhi NCR.
  • PNC Infratech: The company will build for NHAI a four-lane highway in the Sonauli-Gorakhpur section of NH-29E in Uttar Pradesh, at a bid cost of Rs 1,458 crore.
  • Reliance Power: The company has issued to VFSI Holdings Pte up to 60 crore equity shares and/or warrants convertible into equity shares at Rs 15.55 apiece. The deal aggregates to Rs 933 crore.

 

Nifty Outlook

Nifty index settled near the day’s top after volatile trading session, closed shop tad below 17800 levels, up 174 points on the weekly expiry day.

Broader market performance was mix, Mid cap index ended flat while Small cap index soared nearly 1% leading to fairly strong market breadth.

Sector performance was mix, Banking & Finance pack gained maximum, PSU Bank index was at the top of the tally, up 2.5% while Metal index lost maximum, down 0.9%.

SGX Nifty is indicating that the domestic benchmark will open above the upper band of the trading range (17400-800 levels) in which it was trading from past couple of sessions. This is a positive development that will open the gates for further up move towards 18000-mark in the immediate near term.

 

Derivatives Overview & Outlook

Yesterday, no significant activity was recorded in Nifty futures on open interest front whereas Banknifty futures added around 8% of open interest as long buildup.

On sectoral front, long buildup was seen among Infra, Cement, Banking and IT stocks whereas some short buildup was seen among Media stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 17500 PE and 18000 CE.

 

FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 2913 Cr in the cash segment, sold stocks futures worth Rs 1719 Cr and bought index futures worth Rs 853 Cr.

DIIs were net sellers in the cash segment to the tune of Rs 213 Cr.

 

 Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 17900-18000; Supports 17750-17660

Banknifty Futures – Resistances 40750-41000; Supports 40050-39800

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