Morning Outlook 6th September, 2022

NIFTY:

The NIFTY opened at 17546.45 with a gap up of just 7 points. The index initially moved up sharply for the first 5 minutes of trading after recording its intraday low at 17540.35. Prices then lost momentum but kept on rising at a slower pace. The index recorded its intraday high at 17683.15 and then started moving sideways and narrowly. The index remained in a tight narrow range till the closing time and finally closed at 17665.80 near its daily highs with a gain of 126.35 points or 0.72% up. All the sectoral indices have participated on the higher side and closed with some gains. MEDIA led the bulls today by ending 2.75% higher followed by METAL which ended 1.67% higher. The index is going through a process of consolidation. This is normal as we have seen a sharp surge of more than 2500 points in July and August 2022. On the weekly timeframe chart, the index recorded a wide range of weeks. This could result in a narrow and choppy price movement for the coming week. We are also expecting that the index may spend a few weeks within a consolidation. Fresh trades will emerge either on a close above 17700 or on a close below 17400.

BANK NIFTY:

The BANK NIFTY opened at 39412.05 with a gap up of just 28 points. The index recorded its intraday low at 39407.40 just after the open and then moved sharply on the upside for the first 5 minutes of trading. Prices have kept on rising at a slower pace and recorded their intraday high at 39865.20. The index moved sideways and narrow afterwards and finally closed at 39754.54with a gain of 370 points. PVT BANKS and PSU BANKS both have performed almost the same today, saw an upside move, and closed with a gain of 1.12%& 0.95% respectively. Within the index, in terms of points, ICICIBANK contributed the highest on the upside followed by HDFC BANK. BANK NIFTY started the week with some gains and closed higher by almost 1%. We have mentioned a trading range inside the 38000 – 39800 zone. The range remained intact and prices are now trading near the upper range. The short-term trend is sideways but the biases are mildly bullish. As of now, we do not have an adequate setup that could suggest a trade. For the time being,    we should step aside and avoid trading the index. Fresh trading opportunities will emerge if the index breaks and close above 39800 resistance or saw a sharp dip to Nards 38000 support levels. As far as prices are moving within these boundaries, we should shift our focus to intraday only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks rose, aided by gains in metal, banking, realty stocks and extended gains for the second day in a row. The Sensex added 443 points (0.75%) to 59,245.98. The 30-stock gauge rose over 500 points during the session. The Nifty 50 also gained 0.7% to 17,665.80. On Monday, 36 of Nifty 50 stocks rose while 14 fell. Hindalco, JSW Steel, NTPC, ITC, Sun Pharma, RIL, L&T were among the top gainers.

• Hero MotoCorp-backed Ather Energy is gearing up for its biggest ever fundraising round as the leading electric scooter maker is now looking to mop up as much as $200 million to $250 million and take on rivals like Ola Electric, Hero Electric, Okinawa Autotech and TVS Motors, multiple industry sources with knowledge of the matter told Moneycontrol.

• Shares of One 97 Communications Ltd., the operator of digital payments platform Paytm, declined after the Enforcement Directorate conducted searches at premises of several payment firms in Bengaluru. Search operations were carried out on Sept. 2 in connection with Chinese loans app case, according to a press release by the investing agency.

• Oil surged on the possibility that OPEC+ may decide to trim production, and as Europe’s energy crisis worsened after the Group-of-Seven nations endorsed a plan to try to cap the price of Russian crude. West Texas Intermediate advanced above $88 a barrel after sinking by almost 7% last week on concerns that slowing global growth and anti-virus lockdowns in China would hurt demand.

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

BOARD MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL