Morning Outlook 20th July, 2022

NIFTY:

Nifty opened at 16187.05 With a gap down of 91points. The index quickly bounced up after recording its intraday low at 16187.05 and filled the gap within an hour. Prices rallied further and then faced an intraday resistance around 16320 and formed a trading range. The range eventually broke on the upside and prices rallied again. The index recorded its intraday high at 16359.50 and saw a minor dip towards the end of today’s trading session. Prices have finally closed at16340.55 near its day’s high with a gain of 62.05 points or 0.38% up. REALTY outperformed today and closed higher by 2.29% followed by the BANK and AUTO which ended with over 1% gains. PHARMA, MEDIA, and OIL GAS underperformed today and ended with a minor loss.

Tomorrow, we should look for a buying opportunity either on a dip at or below 16200 or on a breakout above 16400. In case of a gap up above 16400 apply the first 15- minute rule. Keep a stop of 80 points and a target of 220 points from your entry price.

BANK NIFTY:

Bank Nifty opened at 35113.25 With a gap down of 241points. The index found support quickly and bounced up after recording its intraday low at 35110.50 a few ticks below the opening price. Gap down was filled within an hour and then prices consolidated that eventually broke on the upside. The index rallied again and recorded its intraday high at 35761.65. Prices have spent the last hour of trading sideways and finally closed at 35708.15 with a gain of 354 points. PSU BANKS have outperformed today and closed higher by 2.29%.PVT BANKS have also rallied today and closed higher by 1.17%.Within the index, in terms of points, AXIS BANK contributed the highest on the upside while KOTAK BANK contributed the lowest.

Since our trade is in a profit of almost 500 points so we should raise our stop loss. We are suggesting traders staying long with a stop at 35400 and a target at 36000.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• STL on Tuesday said it has bagged a multi-year deal with one of India’s leading telecom operators worth Rs 250 crore, as the country gears up for 5G spectrum auction later this month. STL will provide specialised optical fibres and deployment services to build the service provider’s network across nine telecom circles across the country.

• Private sector insurer HDFC Life’s net profit surged 21 per cent year-on-year (YoY) to Rs 365 crore in the April-June quarter of FY23, aided by lower mortality reserves and healthy jump in value of new business (VNB). In the year-ago period, it had reported a net profit of Rs 302 crore. Its VNB rose 25 per cent to Rs 510 crore in Q1FY23, over the same period a year ago, while annualised premium equivalent (APE) grew 22 per cent to Rs 1,904 crore.

• Reliance Jio cemented its lead in the Indian telecom market as it gained over 31 lakh mobile subscribers in May, as per data released by the sector regulator on Tuesday. Sunil Mittal-led Bharti Airtel added 10.27 lakh subscribers in May, taking its mobile user tally to 36.21 crore. According to monthly subscriber data by Telecom Regulatory Authority of India (TRAI), Reliance Jio gained 31.11 lakh wireless subscribers, taking its mobile customer count to 40.87 crore.

• Enthused by strong recovery in retail consumption, realty major DLF Chairman Rajiv Singh has said the company has initiated the development of new shopping malls and looks to double retail portfolio in next five years. At present, DLF has a retail footprint of 42 lakh square feet comprising eight properties, including malls and shopping centres, mainly across Delhi-NCR.

Source: Economic Times,  Indian Express  ,Business Today, Livemint, Business Standard, Bloomberg Quint

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