Morning Outlook 22th July, 2022

NIFTY:

Nifty opened at 16523.55 without much of a gap. The index recorded its intraday low at 16483.90 and then bounced up sharply but faces resistance soon around 16600. Prices build a narrow trading range there, consolidated for about three hours, and eventually broke down. However, the index finds support soon and again started moving higher. Prices have broken 16600 resistance and rallied further to record its intraday high at 16626.95. Finally, the index closed at 16605.25 with a gain of 84.40 points or 0.51% up. All the sectoral indices have closed higher today except the PHARMA which ended with a loss of 0.47%.The rest of the sector indices have gained over half percent.

The short-term trend is up. Moreover, the index is trading very narrowly for the last two trading days. This narrow range will resolve soon one way or the other Support is now visible around 16300 which acted as resistance previously while resistance should emerge around 16650 and if breaks then 16850. As of now, the bias is bullish and we should look for buying only as far as the index is moving above 16300.

BANK NIFTY:

Bank Nifty opened at 36026.55 with a gap up of 136 points. The index initially moved down and filled the gap within the first 5 minutes of trading. Prices then rallied sharply and faced resistance around 36300. The index consolidated there and then turned down. Prices have recorded its intraday low at 35887.35 and intraday high at 36331.70 and finally closed at 36226.15 with a gain of 336 points. PSU and PVT BANKS both have performed almost the same today, saw an upside move, and closed higher by 1.63% & 1.17% respectively. Within the Index, in terms of points, INDUSIND BANK contributed the highest on the upside while KOTAK BANK contributed the lowest.

The last two days were very narrow today. This is normal as prices have rallied more than 1500 points in the past five days. Soon this narrow range will resolve one way or the other. We will then plan our trades accordingly. Till then avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Apparel manufacturer Page Industries Ltd on Thursday reported an increase of 64.86 per cent in net profit at Rs 190.52 crore for the fourth quarter ended March 31, 2022. The company had posted a net profit of Rs 115.56 crore during the January-March period a year ago, Page Industries Ltd (PIL) said in a regulatory filing. Revenue from operations was up 26.15 per cent to Rs 1,111.11 crore during the quarter under review, as against Rs 880.76 crore in the year-ago period.

• State-owned CIL on Thursday said it is planning to divest 25 per cent stake in its unlisted arm Bharat Coking Coal Ltd (BCCL) and will go for the subsequent listing of the subsidiary on stock exchanges after obtaining further clearances. A meeting of the board of directors to this effect was held on March 10, 2022, Coal India Ltd (CIL) said in a regulatory filing.

• The country’s largest mortgage lender HDFC Ltd on Thursday said it has sold 10 per cent of its stake in HDFC Capital Advisors Ltd (HCAL) to Abu Dhabi Investment Authority for Rs 184 crore. With this, HCAL ceases to be a wholly-owned subsidiary of HDFC. In April, Housing Development Finance Corporation (HDFC) had entered into a share purchase agreement for sale of 2,35,019 equity shares of HCAL, representing 10 per cent of paid-up share capital, to a wholly-owned subsidiary of Abu Dhabi Investment Authority.

• Ratings agency Moody’s on Thursday upgraded ratings of Bharti Airtel Ltd’s (Bharti) senior unsecured debt from “Ba1” to “Baa3” on basis of the telco’s continued strengthening of the company’s operational metrics and stabilisation of financial profile.

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

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