Morning Outlook 12th September, 2022

NIFTY:

The NIFTY opened at 17923.35 with a gap up of 125 points. The index found resistance after the opening and drifted downwards after recording its intraday high at 17925.95. Soon, prices started moving up but failed to carry long enough and again moved down but this time with more pace. The index filled the gap and recorded its intraday low at 17786. A minor recovery came afterwards and the index consolidated towards the end of today’s trading session. Prices have finally closed at 17833.35 with a gain of 34.60 points or 0.19% up. IT outperformed today and led the bulls by closing over 2% gains followed by BANK and AUTO which ended 0.50% up. MEDIA and REALTY underperformed today and closed with a loss. The short-term trend is up and there is no doubt about it as the index broke decisively 17700 resistance and had been closing higher since then. However, the breakout came after a sharp rally from the recent swing low of around 17166. After two wide weeks, we may see some choppy and narrow price action in the next week. Psychological resistance is visible around 18000. Support should emerge around 17400 – 17500 zones. The INDIA VIX, a benchmark index for volatility, is now moving below 18 suggesting volatility is normal which favours the bulls. We should look for a buying opportunity on a dip or intraday consolidation breakout.

BANK NIFTY:

The BANK NIFTY opened at 40520.75 with a big gap up of 255 points. The index initially went down, found support quickly, and turned up. Prices have rallied and recorded its intraday high at 40685.95 and then again went down. This time the index saw a sharp dip, almost filled the gap, and recorded its intraday low at 40280.30. Prices have seen some recovery after ward and finally closed at 40388.60 with a gain of 150 points. PSU and PVT BANKS both indices have performed well today saw an intraday rally, and closed with a gain of 0.48% & 0.57% respectively. Within the index, in terms of points, SBIN contributed the highest on the upside while KOTAK BANK contributed the lowest. On a weekly timeframe chart, the index recorded back-to-back two wide bullish candles and is now heading toward its lifetime highs at 41829.60. After two weeks of the sharp rally, we may see some narrow and choppy price action for a few days. Support is visible around 39800 while resistance may emerge around 41000. The short-term trend is up. We should now look for a buying opportunity as far as prices are trading above the 39800 level.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• The Indian market saw yet another volatile session on September 9 but managed to end the day on a high on positive global cues. Concerns about higher inflation numbers, to be released on September 12, saw the market swing between losses and gains. At close, the Sensex was up 104.29 points, or 0.18 percent, at 59,793.14, while the Nifty ended 34.6 points, or 0.19 percent, highers at 17,833.35.

• Tata Group is in talks with a Taiwanese supplier to Apple Inc. to establish an electronics manufacturing joint venture in India, seeking to assemble iPhones in the South Asian country. The discussions with Wistron Corp. are aimed at making Tata a force in technology manufacturing, and the Indian salt-to-software conglomerate wants to tap the Taiwanese company’s expertise in product development, supply chain and assembly, people with knowledge of the matter said.

• According to the monthly data released by the Association of Mutual Funds in India (AMFI), equity funds saw 31% less inflows in August 2022, compared to the previous month.

• Passenger vehicle wholesales in India grew 21 per cent in August, 2022. According to Society of Indian Automobile Manufacturers, SIAM, the Passenger vehicle (PV) sales were at 2,81,210 units this August, against 2,32,224 units in August 2021.

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

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