Morning Outlook 20th June, 2022

NIFTY:

Nifty opened at 15272.65 With a gap down of 88 points. The index continued drifting downwards for the next 20 minutes and then saw a sharp surge on the upside. Prices have recorded its intraday low at 15183.40 and quickly fill the gap and early morning losses. The index recorded its intraday high at 15400.40 and then moved down. Prices have spent the rest of the day within these two levels and finally ended at 15293.50 near its opening tick with a loss of 67.10 points or 0.44% down. OIL GAS and PHARMA led the bears today and ended with a loss of more than 2% followed by IT which ended 1.5% lower. BANK and FINANCIAL outperformed today and ended with gains. The short-term trend is still down and prices are making a pattern of Lower Highs and Lower Lows suggesting the trend is down. The volatility is still very high as the INDIA VIX is moving above 22.We should avoid trading the index for the next couple of trading days. We need to watch if prices forma correction here or consolidate or continue moving downward. We will plan our trade accordingly.

BANK NIFTY:

Bank Nifty opened at32393.45 with a gap down of 180 points. The index continued its bearish momentum and moved further on the downside but prices find support sooner and bounced up after recording its intraday low at 32290.55. The rally fizzled out quickly and prices have continued moving up and down throughout the day. The index recorded its intraday high at 32889.80 and finally closed at 32857.05 with a gain of 320 points. PVT BANKS outperformed today and ended with a gain of 0.41% while PSU BANKS have underperformed today and ended with a loss of 0.80%. Within the index, in terms of points, ICIC IBANK contributed the highest on the upside while BANK BARODA contributes the lowest. The short-term trend is still down and the index came close to its 52-week low around 32155.35 We should avoid trading on Monday and watch how prices are behaving. We will plan our next trade accordingly.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Jaguar HDFC Life Insurance Company on Friday said it will raise debt capital of up to Rs 350 crore by issuing bonds on a private placement basis. The Capital Raising Committee of the company’s board approved a proposal for raising up to Rs 350 crore through issuance of 3,500 non-convertible debentures, HDFC Life said in a regulatory filing. The company said the bonds will carry coupon rate of 8.20 per cent per annum.

• British premium motorcycle brand Triumph is bullish on the prospects offered by the niche two-wheeler segment in India over the next one year, a period during which the company aims at boosting its market share to 25 per cent from 22 per cent at present, a senior official said on Friday. Triumph Motorcycles India has seen a growth of 30 per cent in the last 12 months, with sales of “a little over” 1,200 units, he said.

• Bank credit grew 13.1 per cent year-on-year (YoY) in the fortnight ended June 3, the highest in the past three years, the latest data released by the Reserve Bank of India (RBI) shows. Growth in bank credit in the previous year was 5.7 per cent. At an event on Friday, Reserve Bank of India (RBI) Governor Shaktikanta Das said: “We are seeing reasonably satisfactory credit offtake happening. It is about 12 per cent YoY, according to the latest data. Last year, around this time, credit growth was 5-6 per cent.”

• Pharma major Cipla Ltd on Friday said it will acquire 21.05 per cent stake for Rs 25 crore in Achira Labs Pvt Ltd, which is engaged in development and commercialisation of point of care (PoC) medical test kits in India.

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

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