Morning Outlook 19th May, 2022

NIFTY:

Nifty opened at 6318.15 wit ha gap up of 59 points. The index rallied further on the upside and then finds resistance around 16400. The index recorded its intraday high at 17399.80.Prices then started a process of consolidation that eventually breaks on the downside. The index recorded its intraday low at 16211.20 and quickly bounced up near its opening price. Prices have again moved down in the last hour of trading and finally closed at 16240.30 near its day lows wit h a loss of just 19 points or 0.12% down. FMCG and PHARMA outperformed today and closed wit ha gain of over 1%.REALTY underperformed today and ended wit h a loss of more than 1.5%. AUTO ended almost flat today. We have mentioned a support zone around 15700 – 15750 and a resistance level around 16500. Our bias is bullish within these levels. We will be buying as far as prices are trading above 16000. Tomorrow, we should look for a buying opportunity on a dip towards 16050 with a stop at 15950 and a target at 16340.

BANK NIFTY:

Bank Nifty opened at 34448.20 with a gap up of 102 points. The index moved further on the upside and then find strong resistance around 34600. Prices have recorded its intraday high at 34655.80 and consolidated there. That consolidation broke on the downside, prices have declined to record its intraday low at 34134.70 and again started consolidation. The index finally closed at 34198.35 with a loss of 148 points. PSU BANKS have underperformed today, saw a sharp intraday decline, and closed lower by 1.50%.PVT BANKS have also moved down but ended with a marginal loss of just 0.17%.Within the index, in terms of points, AXIS BANK contributed the highest on the upside while SBIN contributed the lowest. We are suggesting traders to staying long with a stop at 33950 and a target at 34800. It was a volatile day today in the index where prices have seen sharp moves in both directions and finally ended wit h a loss. The short-term trend is sideways now which was down before.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• InterGlobe Aviation Limited (IndiGo) on Wednesday appointed Pieter Elbers as Chief Executive Officer, subject to regulatory approvals, the company said in a stock exchange filing. He will join IndiGo on October 1, 2022. “Elbers succeeds Ronojoy Dutta (71) who has decided to retire on September 30, 2022, after guiding IndiGo through the turbulent Covid period,” the airline said. Commending Dutta’s service, Rahul Bhatia, Managing Director of IndiGo said, “The Board of Directors and I would like to thank Rono for effectively leading our business for almost four years with a steady hand through what has been the most turbulent period in the airline’s history and aviation globally.
• Sun Pharmaceutical Industries plans to launch a first in class lipid lowering oral drug – Bempedoic Acid – in India that helps to reduce low-density lipo-protein (LDL) cholesterol. The company will launch the drug under the brand name Brillo, it said. Sun Pharma claimed that this drug has a new mechanism of action compared to the currently available lipid lowering agents. “It is indicated for people who have an inherited genetic disorder that causes high cholesterol levels or established heart disease where cholesterol levels remain high, despite lifestyle changes and the use of maximum tolerated dose of statins,” it said.
• S&P Global Ratings has cut India’s GDP growth forecast for 2022-23 to 7.3% from 7.8% earlier due to rising inflation and the Russia-Ukraine war. For the next fiscal, the growth has been pegged at 6.5%. The Indian economy is estimated to have clocked a GDP growth of 8.9% in FY22. The Group of Ministers (GoM) has agreed to recommend hiking the GST rate on casino, race course and online gaming services to 28 per cent.

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

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