Morning Outlook 5th July, 2022

NIFTY:

Nifty opened at 15710.50 with a gap down of just 42 points. The index attempted to move higher but failed to do so and fell further for the first hour of trading. The index found support around 15650 and bounced up after recording its intraday low at 15661.80. Prices kept on rising and then saw a sharp dip in the afternoon. The NIFTTY again found support and moved up to record its intraday high at 15852.35. The index finally closed at 15835.35 near its day high with a gain of 83.30 points or 0.53% up. FMCG continued its outperformance and ended wit h a gain of 2.66% followed by BANK and FINANCIAL which ended at more than 1%. METAL,IT, and OIL GAS underperformed today and ended with a loss. The short-term trend is sideways for the past few trading days. Moreover, we have mentioned a strong resistance zone around the 15800 – 16000 range. The zone is still intact and prices are finding it difficult to cross above We may see a sharp move soon here since the index is moving within a narrow range for the past 7 trading days. This is a contraction and it should lead to an expansion.

BANK NIFTY:

Bank Nifty opened at 33558.85 with a gap down of just 47 points. The index initially consolidated for about one and half hours and then started moving higher after recording its intraday low at 33515.60. Prices moved up and then again consolidated which eventually broke on the upside. The index recorded its intraday high at 33978.50 and finally closed at 33964.75 wit ha gain of 359 points. PVT and PSU BANKS both have performed almost the same today, saw an upside move, and ended wit h a gain of 1.53% & 1.66% respectively. Within the index, in terms of points, ICIC IBANK contributed the highest on the upside while AU BANK contributed the lowest. Our long trade was executed there and remained intact as prices did not hit the suggested stop and target. We are recommending traders to stay long with a stop at 33700 and a target at 34500.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Tata Steel on Monday said that it has completed the acquisition of 93.71 per cent in Neelachal Ispat Nigam Limited (NINL) through its listed step-down subsidiary, Tata Steel Long Products (TSLP). On January 31, TSLP was declared the winning bidder for the one million tonne (mt) NINL, an asset owned by central and state public sector undertakings, in a process run by the Department of Disinvestment & Public Asset Management (DIPAM), for a consideration of Rs 12,100 crore.

• Since June 30, shares of Seshasayee Paper and Boards jumped 7 per cent, Andhra Paper gained 6.21 per cent, Tamil Nadu Newsprint & Papers climbed 4.62 per cent and Satia Industries advanced 4.62 per cent on the BSE. Among others, Star Paper Mills went higher by 4.14 per cent, Emami Paper Mills gained 3.92 per cent, West Coast Paper Mills (3.83 per cent), Orient Paper & Industries (3.10 per cent), JK Paper (2.93 per cent) and Astron Paper & Board Mill (2.64 per cent).

• Tata Motors expects second half of the current fiscal to be better in terms of performance with gradual improvement in the overall supply situation and stabilisation in commodity prices, according to company chairman N Chandrasekaran. Addressing shareholders during the company’s 77th annual general meeting, Chandrasekaran noted that demand for the company’s vehicles across segments remained robust despite various external challenges.

• Tata group firm Titan said the outlook for its jewellery division in FY23 and mid-term is “positive” with “excellent” growth opportunity helped by multi-pronged efforts within the wedding market, momentum behind its gold exchange scheme and network expansion.

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

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