Morning Outlook 13th September, 2022

NIFTY:

The NIFTY opened at 17890.85 with a gap up of 57 points. The index initially moved sideways, recorded its intraday low at 17889.15, and then started moving higher. A sharp rally brought prices above 17950 but found strong resistance there and went into a tight, narrow range. The range lasted for the rest of the day. Prices have recorded their intraday high at 17980.55 and finally closed at 17936.35 near its day highs with a gain of 103 points or 0.58% up. All the sectoral indices have participated in today’s up move and closed higher. REALTY outperformed by closing 2.20% higher followed by IT and MEDIA which ended with over 1% gains. The NIFTY has been closing higher for the past three trading days. Hence the short-term trend is up and there is no doubt about it. Moreover, for this week, our view was choppy and narrow. Today prices have almost moved similarly. Psychological resistance is visible around 18000. Prices have almost reached there today but failed to cross above. 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 should favour the bulls. We should look for a buying opportunity on a dip or intraday consolidation breakout.

BANK NIFTY:

The BANK NIFTY opened at 40540.45 with a gap up of 152 points. The index initially went down, filled the gap, recorded its intraday low at 40377.90, and then turned up. Prices have rallied sharply and then again went into a process of consolidation. The index recorded its intraday high at 40684.90 and finally closed at 40561.50with a gain of 173 points. PSU and PVT BANKS both indices have performed well today saw an intraday rally and closed with a gain of 122% & 0.36% respectively. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while HDFC BANK contributed the lowest. BANK NIFTY started the week with a positive bias but moved very narrow and choppy during the day. A gap-up opening did not sustain but prices have managed to close with some gains. The index recorded back-to-back narrow range days and closed higher for the past three trading days. For the current week, our view was narrow and choppy price action. 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

• On Monday, Sensex ended the day 312.26 points higher or 0.52% at 60,105.40. Nifty added 97.50 points or 0.55 percent to close at 17,930.80. About 2013 shares advanced, 1326 shares declined, and 143 shares remained unchanged. Among sectors, Nifty IT led the market rally. Tech Mahindra, Infosys and Wipro surged between 1.5-3%, and were among the top gainers on the BSE. Nifty Realty Index added 2%, led by Oberoi Realty, Godrej Properties, DLF and Brigade Enterprises.

• Non-bank lenders’ asset growth will jump to a four-year high of 11-12% this fiscal, a ratings agency said on Monday. The non-bank finance companies (NBFCs) segment has witnessed three consecutive years of constrained asset growth due to the COVID-19 pandemic, with the growth coming at 5 per cent in FY22, Crisil Ratings said.

• Air India Ltd. will add 30 new aircraft from December this year to boost its domestic and international services. The airline, owned by Tata Sons Pvt. Ltd., has signed leases and letters of intent for inducting five wide-body Boeing aircraft and 25 narrow-body Airbus planes over 15 months. “These new aircraft, which will enter service from late 2022, will increase the airline’s fleet by over 25%.

• The National Health Accounts report for the year 2018-19, released by the Centre on September 12, has shown that the total health expenditure as percentage of the gross domestic product declined from 4.2 to 3.2 since 2004-05. The same report, however, also showed that the out-of-pocket expenditure during the same period came down from 69.4 to 48.2% of the total health expenditure.

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

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