Daily Market Update- Equity | Globe Capital
05-Jul-2022
Daily Market Update- Equity

Buying witnessed in the later half of the day helped Nifty index settle at the day’s peak at 15835 levels, up 83 points.

Overview and Outlook

Global Market update

US equity markets were closed yesterday on account of the Independence Day holiday. European equity markets edged higher barring DAX as it was down 0.3%. Asian equity markets are trading in green. SGX Nifty is little changed, up 36 points

 

News Highlights from across the globe

Asian stocks opened with gains Tuesday as investors evaluate the possible scrapping of some US tariffs on Chinese consumer goods. The Reserve Bank of Australia is due to announce its rate decision today. Brent crude futures extended gains on Tuesday as a strike in Norway is expected to disrupt oil and gas output, fanning tight supply worries.

 

Important news & Earnings Updates from the domestic front

Tata Consultancy Services: A U.S. court reduced the punitive damages to $ 140 million in a trade secrets case with American software firm Epic Systems Corp. The company said that it has been advised that the order is appealable in the higher court.

Marico: The company increased its stake in Apcos Naturals by 4.14% to 56.52% for an undisclosed consideration.

Cipla: The United States Food and Drug Administration conducted a pre-approval inspection at the company’s Indore plant from June 27 to July 1. It has received two observations on FDA Form 483 with respect to ANDA filed for the product to be manufactured at the said plant.

Vedanta: The company reported 3% yoy increase in production of Aluminum in Q1 to 5.65 lakh tons. It also increased the mining of domestic Zinc’s by 14% yoy to 2.52 lakh tons in the first quarter. Oil and Gas gross production reduced 10% yoy to 1.35 crore barrels of oil equivalent.

Kotak Mahindra Bank: The Reserve Bank of India imposed a penalty of Rs 1.05 crore due to the inability of the bank to credit the amount involved in unauthorized electronic transactions within 10 working days. The Bank did not maintain/apply required margin on advances to stockbrokers. It failed to credit the required amount to depositor education fund.

 

Nifty Outlook

Buying witnessed in the later half of the day helped Nifty index settle at the day’s peak at 15835 levels, up 83 points.

Broader markets performed in line with benchmark as Mid & Small cap index settled 0.9% and 0.64% higher respectively. Due to which market breadth was tilted towards the advancing side.

Sector performance was mix, FMCG index outshined peers as it soared 2.66% along with this Banking & Finance pack performed quite well, up over 1%.

Nifty index is still trading in range 15600-900 levels and we reiterate our view that decisive move will not be possible till the benchmark index is trading within this range.

 

Derivatives overview and outlook

Yesterday, both Nifty & Banknifty futures added around 3% of open interest each as long positions.

Majority of F&O sectors settled higher. Amongst them, Chemicals, FMCG, Textile and Capital Goods stocks witnessed maximum addition of long positions.

On options front, put writing was seen at multiple strikes along with call writing at multiple strikes and maximum positions are at 16500 CE closely followed by 16200 CE and 15000 PE followed by 15700 PE.

 

FII & DII Trading Activity

Yesterday, FIIs sold stocks worth Rs 2150 Cr in the cash segment, sold stocks futures worth Rs 358 Cr and also sold index futures worth Rs 615 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1688 Cr.

 

Nifty Futures & Bank Nifty Futures Key Levels

Nifty Futures – Resistances 15930-16050; Supports 15750-15650

Banknifty Futures – Resistances 34200-34400; Supports 33700-33400

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