Morning Outlook 26th April, 2022

NIFTY:

Nifty opened at 17009.05 with a big gap down of 162 points. The index first consolidated around the opening tick, saw a minor upward rally and recorded its intraday high at 17054.30.Prices then moved down very sharply towards the 16900 and then turned up. Another rally came and fizzled out quickly and the index moved down to record its intraday low at 16888.70.The index again saw a sharp intraday rally of about 100 points towards the end of today ‘s trading session and finally closed at 16953.95 with a loss of 218 points or 1.27% down. All the sectoral indices have seen a decline today and closed lower except the BANKS which ended with gains. The REALTY led the bears to end nearly 4% down followed by the META L,MEDIA, IT, and PHARMA which ended more than 2% lower.

the intraday range was very narrow today and prices have recorded a pattern of NR7. This pattern does not have enough impact if it appears after a gap. The short-term trend is sideways but the bias is more on the downside as fa r as the index if trading below 17000. If the index moves higher tomorrow and finds strong support around 17000 then we should look for buying also. The idea is to buy on a breakout above 17150 with a stop at 17040 and a target at 17390.

BANK NIFTY:

Bank Nifty opened at opened at 35792.35 with a gap down of 216 points. The index recorded its intraday low at 35511.40 and bounced up sharply. Prices have filled the gap quickly. The index moved up and down in a sideways manner for almost the whole day, recorded its intraday high at 36270.15, and finally closed at 36192.85 with a gain of 184 points. PVT BANKS have outperformed today and closed with a gain of 0.10%.PSU BANKS have underperformed today, saw a sharp intraday decline, and closed lower by 1.31%. Within the index, in terms of points, HDFC BANK contributed the highest while SBIN contributed the lowest.

We have mentioned a narrow trading range inside the 36000 – 37000 zone. Prices have opened below 36000, bounced up sharply, and then spend most of today’s time above the 36000 support.

TECHNICAL PICKS

NEWS UPDATES

• BHEL on Monday said it has received an order from NTPC for six electric locomotives to be used for the first time in the country for industrial application. The locomotives will be manufactured at the company’s facility in Jhansi, Uttar Pradesh. While the traction motors for the locomotives will be supplied from its Bhopal plant, IGBT (Insulated Gate Bipolar Transistors) based propulsion equipment will be developed and supplied by the Bengaluru unit, BHEL said in a statement.
• Debt-ridden Future Group is now focusing on saving and rebuilding firms such as — Future Lifestyle Fashions, Future Supply Chain Solutions, Future Consumer and Future Enterprises, after the Rs 24,713-crore deal with Reliance Retail was rejected by secured creditors, according to industry sources. However, Future Group’s flagship firm Future Retail Ltd (FRL), which has nearly Rs 18,000 crore debt, is bound to face the corporate insolvency resolution process before the National Company Law Tribunal (NCLT).
• After becoming the technical partner of the Mercedes-AMG Petronas Formula One Team and making strides in MotoGP through Petronas Sepang Racing Team, Malaysian oil and gas giant Petronas has joined hands with TVS Motor Company’s TVS Racing, India’s first factory racing team.
• Billionaire Industrialist Gautam Adani has edged past veteran investor Warren Buffett to become the world’s fifth-richest person, according to data by Forbes. The sharp run-up in Adani Group stocks has led him to this feat. According to Forbes’ Real-Time Billionaires List, Adani’s wealth stood at $123.7 billion as of Friday’s close, racing past Buffett’s $121.7 billion.

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