Morning Outlook 10th May, 2022

NIFTY:

Nifty opened at 16227.70 wit ha big gap down of 184 points. The index initially moved further lower for almost half an hour and recorded its intraday low at 16142.50.Prices have found strong support there and bounced up. A sharp rally brought prices above 17400 and the index recorded its intraday high at17403.70. Prices then moved down again. The decline again finds support and prices have seen another rally in the last hour of trading. The index finally closed at 16301.85 wit h a loss of 109.40 points or 0.67% down. All the sectoral indices have seen a decline today and closed lower except IT which ended almost flat. OIL GAS. MEDIA, and METAL led the bears today and ended with more than a 2% loss.

INDIA VIX, the volatility’s benchmark indices have risen to 22 levels. For a non volatile environment, this needs to come around 15-18 zone. Trading in such a volatile environment almost always leaves us with a lot of whip saws. We are recommending traders step aside and avoid trading the index. We have to wait for an adequate setup to emerge which could suggest us a trading   opportunity.

BANK NIFTY:

Bank Nifty opened at 34091.75 with a big gap down of 590 points. The index initially moved down and recorded its intraday low at 33927.20. Prices find support there and moved up. The index rallied very sharply but failed to fill the gap and recorded its intraday high at 34554.34. index moved very volatile afterward and finally closed at 34321.05 with a loss of 360 points. PSU BANKS have underperformed today, led the bears, and closed lower by 2.34%. PVT BANKS have also moved down and ended with a loss of 0.90% Within the index, in terms of points, HDFC BANK contributed the highest while ICICI BANK contributed the lowest.

The index continued moving volatile wit h sharp swings in both directions. The short-term trend remains down and it now seems that a short-term low may be in place. A close above 34000 tomorrow may confirm this hypothesis

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• PVR Ltd on Monday reported narrowing of its consolidated net loss to Rs 105.49 crore for the fourth quarter ended in March 2022. The company had posted a net loss of Rs 289.21 crore in the January-March quarter a year ago, PVR said in a BSE filing. Its revenue from operations rose by nearly three-fold to Rs 537.14 crore during the quarter under review as against Rs 181.46 crore in the corresponding quarter last fiscal.
• Engineering major Larsen & Toubro (L&T) on Monday said it has bagged a significant project from Jharkhand government for irrigation. The project envisages to provide water to irrigate 22,283 hectare of Culturable Command Area (CCA) in Dumka district of Jharkhand by way of pumping water from the Sidheshwari river. The scope includes survey, design, and constructing a barrage across the river. “The water & effluent treatment business of L&T Construction has secured a repeat EPC order from the Department of Water Resources, Government of Jharkhand, to execute the Masalia Ranishwar Megalift irrigation scheme on a turnkey basis,” the company said in statement.
• Central Bank of India on Monday reported a standalone net profit of Rs 310 crore in quarter ended March 2022, on the back of less provisioning for bad loans. The lender had posted a net loss of Rs 1,349 crore in the same quarter a year-ago.
• Steel prices, which have been on a song for the past two years, are finally set to correct on weak seasonality, and may trade at around Rs 60,000/tonne by the end of the current fiscal year, down from the Rs 76,000/tonne peak it scaled last month, says a report.

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

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