Morning Outlook 24th August, 2022

NIFTY:

The NIFTY opened at 17357.35 with a big gap down of 133 points. The index started moving upwards from its opening tick after recording its intraday low at 17345.20. Prices have filled the gap quickly, rallied further, and then turned down after reaching above 17600. A sharp dip found support around 17400 and the index again moved up. Prices have seen another upside move which lasted till the end and recorded its intraday high at 17625.55. Prices have finally closed at 17577.50 near their daily highs with a gain of 86.80 points or 0.50 % up. All the sectoral indices have closed higher today except IT which ended with a loss of 1.77%. The rally was led by AUTO, METAL, OIL&GAS, and BANK    which ended with over 1% gains. A big gap-down opening did not sustain today. Prices have rallied more than 200 points after opening with a gap down and closed above 17600 with a gain of a half percent. We have been expecting an increase in volatility and that we are seeing now. The volatility may continue to rise due to global factors and also monthly expiry is approaching. We have a support level of around 17400 and a resistance level of around 18000. It is very likely that prices may continue moving within these levels for a few weeks. As of now, we should avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 37955.45 with a big gap down of 376 points. The index started moving upwards after recording its intraday low at 37950.85 and filling the gap within a few minutes. Prices then saw a minor correction which found support quickly and the index resumed its up move to record its intraday high at 38869.90. The index finally closed at 38852.20near its day high with a gain of 521points. PSU BANKS have outperformed today and closed with a gain of 2.34%. PVT BANKS have also moved up today and ended with a gain of 1.13%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside followed by SBIN. It was again a trend day today in the Bank Index but on the upside, where prices have recorded their intraday low near the opening tick and intraday high near the closing tick. A gap-down opening did not sustain and has rallied almost 900 points during the day to end with a gain of over 1%. The short-term trend is sideways and now has a support level of around 38000 and a resistance level of around 40000. This range has yet to be confirmed but it is most likely that prices may move within these boundaries for a few weeks. The monthly expiry is approaching so the volatility may also continue. We should avoid trading the index.

 

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher on August 23 amid high volatility. At Close, the Sensex was up 257.43 points or 0.44% at 59031.30, and the Nifty was up 86.80 points or 0.50% at 17577.50. About 2077 shares have advanced, 1235 shares declined, and 146 shares are unchanged. BSE midcap and smallcap indices added 0.5-1 percent.

• The Reserve Bank of India (RBI) has set for itself a two-year timeframe to bring down inflation closer to its 4 percent target, Governor Shaktikanta Das told a television channel on August 23. Inflation and inflation expectations are increasingly getting anchored, he added, stating that inflation has peaked and is expected to moderate going forward. However, there is “absolutely no room” for any complacency with regards to inflation, he said.

• Apple intends to begin iPhone 14’s production in India about two months after the product’s release out of China. The first iPhone 14 from India is likely to be finished in November, after the scheduled release in September.

• IKS Health, backed by late Rakesh Jhunjhunwala’s investment firm Rare Enterprises, is set to file draft papers with SEBI next month for floating initial public offering (IPO) soon. The company is reportedly looking to launch the offer by January, 2023.

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

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