Morning Outlook 20th October, 2022

NIFTY:

The NIFTY opened at 17568.50 with a gap up of 82 points. The index initially moved sideways and then went higher. Prices went above 17600 and then turned down. The index recorded its intraday high at 17607.60, saw a sharp dip of more than 100 points, and started moving sideways in a volatile manner with sharp swings. The index recorded its intraday low at 17472.85 and finally closed at 17512.25 near yesterday’s closing price with a gain of 25.30 points or 0.14% up. OIL GAS, REALTY, and FINANCIAL outperformed today and dosed higher. IT and METAL underperformed today and ended lower. PHARMA and AUTO ended almost on a flat note. The short-term trend is up as we have seen a breakout from the 17400 resistance yesterday and today prices remained above this level which is now acting as a support level. The intraday range was narrow today, but prices have moved very volatile. However, volatility is normal as the INDIA VIX, a benchmark index for volatility, is moving below level 18. Stay long and look for a buying opportunity as far as prices are moving above 17400 support. Resistance is visible around the 17800 – 18000 zone.

 BANK NIFTY:

The BANK NIFTY opened at 40556.65 with a big gap up of 253 points. The index initially consolidated for almost two hours and eventually broke on the downside after recording its intraday high at 40643.60. Prices have seen a sharp decline, recorded its intraday low at 40195.20 and then a sharp rally came. The index finally dosed at 40379.95 with a gain of 76 points. PVT BANKS have outperformed today and closed higher by 0.29% whereas PSU BANKS have underperformed today and closed lower by 0.58%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while SBIN contributed the lowest. It was a volatile day today for the BANK NIFTY where prices have moved narrow, saw a sharp decline as well as a rally, and finally ended with a marginal gain. The short-term trend is up as we have seen a breakout from a trading range and the index is trading above the breakout point which was 39500 and now acting as a support level. Today was the fourth consecutive trading day when the index closed higher. It is possible that we may see a dip or consolidation soon. We will plan our trade accordingly. Till then prefer trading only on an intraday basis

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher for the fourth straight session on October 19 with Nifty finishing above 17,500.At Close, the Sensex was up 146.59 points or 0.25% at 59,107.19, and the Nifty wa up 25.30 points or 0.14% at 17512.30. About 1592 shares have advanced, 1724 shares declined, and 149 shares are unchanged.

• IndiGo continued to remain India’s top airline by market share, while a resurgent Air India under the Tata Group and the Jhunjhunwala family-backed Akasa Air made inroads into the country’s burgeoning-but-tough aviation market

• Piramal Pharma’s shares fell as much as 5% in early trade, to Rs 191.75 apiece, while Piramal Enterprises traded in the green and gained as much as 2% on Wednesday.

• Nestle India Ltd.’s third-quarter profit rose, beating estimates, after falling for the last three consecutive quarters, aided by rural growth, price hikes, and out-of-home consumption gaining momentum. Net profit of the maker of Maggi instant noodles and KitKat chocolates—that follows calendar-year financial reporting—rose 8% over a year earlier to Rs 668.3 crore in the three months ended September.

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

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