Morning Outlook 4th November, 2022

NIFTY:

The NIFTY opened at 17968.35 with a big gap down of 114 points. The index rebounded quickly and started moving on the upside after recordings its intraday low at 17959.20. A sharp rally from the opening brought the index above 18100 and prices recorded its intraday high at 18106.30. The NIFTY moved down afterward and then started a consolidation process. Prices have finally dosed at 18052.70 with a loss of 30.15 points or 0.17% down. REALTY outperformed today followed by BANK and FMCG. IT underperformed today and ended with a loss of 1.18%. FINANCIAL and PHARMA ended on a flat note. The NIFTY has seen four days of sharp rally and has paused for the past two trading days. We should be buyers as far as prices are trading above 18000 support. Resistance is visible around 18600 which is also the lifetime high for the NIFTY Index. We have been expecting a dip or a few days of consolidation. We should now wait patiently for an adequate trading setup to suggest a trade. Buying should be down on a breakout or a dip while shorting opportunities may emerge on a close below 16800. As of now, avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 40873.70 with a big gap down of 234 points. The index bounced up from the start and filled the gap quickly. Prices recorded its intraday low at 40819.15 and rallied over 5OO points to record its intraday high at 41478. However, prices then started moving sideways and finally closed at 41304.6S with a gain of 197 points. PSU BANKS have outperformed today by closing 2.52% higher while PVT BANKS have also seen a rally today but closed with a gain of just 0.34%. Within the index, In terms of points, SBIN contributed the highest on the upside while HDFC BANK contributed the lowest. Look for a buying opportunity on a breakout above 41500 or a shorting opportunity on a break down below 40800. In case of a gap beyond these levels follow the first 5 minutes rule. Keep a stop of 300 points and a target of 800 points. A gap-down opening did not sustain today in the BANK Index. Prices have seen a sharp intraday rally and ended with gains. The index continued moving inside a narrow range with 40800 support and 41700 resistance for the past eight trading days. A breakout from this range may give us a directional move.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: FX Reserves, USD on 4th  November, 2022 INR: CPI (YoY) (Oct)on 11th  November, 2022	USD: Unemployment Rate (Oct) on 4th  November, 2022 USD: Nonfarm Payrolls (Oct) on 4th  November, 2022

NEWS UPDATES

• Indian benchmark indices ended marginally lower in the volatile session on November 3.At Close, the Sensex was down 69.68 points or 0.11% at 60,836.41, and the Nifty was down 30.10 points or 0.17% at 18,052.70. About 1725 shares have advanced, 1630 shares declined, and 120 shares are unchanged.

• Five Star Business Finance Ltd’s investors are in shock after the company priced its initial public offering (IPO) below its unlisted market price, dealers said.The South-based lender’s share price is Rs 525-530 per share in the unlisted market while the IPO price band is fixed at Rs 450-474 per share, about 10.6 percent below the current unlisted price.

• Share price of Adani Wilmar fell by 2 percent after the FMCG company posted a 73.3 percent on-year decline in consolidated net profit. The company’s post-tax profit came in at Rs 48.7 crore in the quarter ended September 2022 as against Rs 182.3 crore in the same quarter last fiscal

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

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