Morning Outlook 19th July, 2022

NIFTY:

Nifty opened at 16151.40 With a gap up of 102 points. The index initially moved sideways for about one and half hours and that range eventually broke on the upside. Prices have recorded its intraday low at 16142.20 in its initial trades and after the breakout prices have rallied sharply throughout the day with minor corrections in between. The index recorded its intraday high at 16287.95 and closed at 16278.50 near its day’s high with a gain of 229.30 points or 1.43% up. IT outperformed today and closed higher by 3.17% followed by METAL which ended 2.49% up. FMCG and PHARMA underperformed today and ended with a minor loss.

We have identified a narrow trading range on the daily chart inside the 15850 – 16300 zone. Prices have closed around 16300 resistance today. The short-term trend is up now as fa r as the index is trading above the 16000 mark. We should now wait for prices to close beyond these levels. Till then avoid trading the index

BANK NIFTY:

Bank Nifty opened at 34841.85 with a gap up of 137 points. The index initially moved sideways and then eventually broke on the upside after recording its intraday low at 34804.40. Prices have rallied throughout the day wit h minor corrections in between, recording its intraday high at 35382.50 and finally closing at 35354 wit h a gain of 650 points. PSU and PVT BANKS both have performed almost the same today saw a sharp intraday rally and ended higher by 2.77%& 2.29% respectively. Within the index, in terms of points, ICIC IBANK contributed the highest on the upside while HDFC BANK contributed the lowest.

Moreover, we have also suggested taking a long trade on a breakout above 35200 with a stop of 300 points and a target of 800 points. The index broke this level during the day so we took a long trade there. Stay long wit h a stop at 35100 and a target at 36000.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• State Bank of India (SBI), which currently holds 26 per cent stake in the YES Bank, will not take a decision to sell its stake this year. SBI is helping YES Bank in dealing with the private lender’s non performing assets (NPA). SBI is allowed to reduce the stake at the end of Financial Year 2022-23 (FY23) but it may not decide about that this financial year due to volatile market conditions, the ‘Times of India’ reported on Monday.

• Tata Consultancy Services (TCS) said on Monday it has been ranked number one by revenue among the top 30 suppliers of software and IT services (SITS) to the UK market by industry analyst firm, ‘TechMarketView’. The report is compiled through a detailed analysis of UK revenues of over 200 publicly quoted and privately held companies, a TCS statement said. TCS has retained its position as the UK’s largest SITS provider.

• L&T Realty on Monday said it has signed agreements to jointly develop projects worth Rs 8,000 crore in Mumbai region as part of its expansion plan. L&T Realty is the real estate development arm of Larsen & Toubro. “The company has entered into a binding agreement to jointly develop projects in South Mumbai, Western Suburbs and Thane worth Rs 8,000 crore, with development potential of 4.4 million square feet,” L&T Realty said in a statement.

• Prestige Estates on Monday reported over four-fold jump in its sales bookings at Rs 3,012 crore during the first quarter of this fiscal year on better demand and lower base effect. The sales bookings stood at Rs 733.9 crore in the year-ago period, which was badly hit by the second wave of the COVID pandemic.

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

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