Pre Market Update

Pre-Market Update 9th Sep 2021

September 9, 2021

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Global Market update • US equity markets ended lower on Wednesday • European equity markets too ended lower by 0.75%-1.47% • Most of the Asian markets are trading in red • SGX Nifty is down 50 points

September 9, 2021

Analyst – Gaurav Sharma / Vipin Kumar

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News Highlights from across the globe •

Asian stocks declined early Thursday after a dip in U.S. shares as investors continue to fret over a slowdown in the recovery from the pandemic.

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Chinese stocks trading in the U.S. tumbled on renewed concerns about Beijing’s regulatory crackdown after officials summoned gaming companies including Tencent Holdings Ltd. and Netease Inc. to discuss further oversight.

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Treasury yields stay lower in the wake of strong demand at the monthly 10-year note auction. Oil was steady above $69 a barrel amid a slow return of U.S. production after Hurricane Ida.

September 9, 2021

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Important news & Earnings Update from domestic front •

Jindal Steel & Power: The company has prepaid $105.66 million loan of Australian unit. The prepayment has helped reduce the unit’s debt by about 50%. The company plans to pay off its overseas debt in coming quarters and aims to be net debt-free by March 2023.

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SBI Life Insurance Company: Canada Pension Plan Investment Board is selling 20 million shares in the company in an accelerated bookbuild offering. Shares are being offered at Rs 1,159.05 to Rs 1,220.05 each, which is at a discount of 0% to 5% to Wednesday’s close.

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ONGC: The company is exploring a purchase of a significant minority stake in the $4 billion-plus Sangomar oil project off the coast of Senegal from Woodside Petroleum Ltd.

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Punjab National Bank: Banks Board Bureau has recommended two names for MD & CEO role at Punjab National Bank. BBB recommended Atul Kumar Goel for the role and named Ajay Kumar Srivastava as the candidate on reserve list.

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Infosys: The company and The Economist Group have announced a new strategic partnership designed to enable and accelerate sustainability solutions and drive world-changing impact through a new business-to-business model. The company has also approved the closure of the buyback on September 8. It has bought back 5.58 crore equity shares, at an average price of Rs 1,648.53 per equity share, for Rs 9199 Cr. 4

Nifty Outlook Nifty index ended flat after a volatile trading session where steep moves were witnessed on both sides. Broader markets outperformed benchmark as both Mid & Small cap index settled in green, up 0.43% & 0.65% respectively. Sector performance was mix, Bankex outperformed gained 0.8% while IT index was at the bottom of the tally, down 0.78%. We reiterate our view, Nifty index is well placed on multiple chart frames. Hence, dips can be utilized to take fresh entry.

September 9, 2021

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Derivatives overview and outlook Yesterday, Nifty futures remained almost unchanged on price as well as on open interest front whereas Banknifty futures shed around 1.5% of open interest as short covering. On sectoral front, long buildup was seen among Finance, Infra and Textile stocks whereas short buildup was seen among Telecom stocks. On options front, call writing in weekly contract was seen at 17400 & 17500 strikes along with put writing at 17250 & 17300 strikes and maximum positions are at 17500 CE and 17300 PE.

September 9, 2021

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FII & DII Trading Activity •

Yesterday, FIIs sold stocks worth Rs 803 Cr in the cash segment, sold stocks futures worth Rs 953 Cr and bought index futures worth Rs 44 Cr.

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DIIs were net buyers in the cash segment to the tune of Rs 1 Cr.

Nifty & Banknifty Futures trading levels •

Nifty – resistances 17450-17520, supports 17275-17200

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Banknifty – resistances 37200-37500, supports 36600-36200

September 9, 2021

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September 9, 2021

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