Morning-Outlook-Feature-Image

Morning-outlook-26sept

NIFTY:

The NIFTY opened at 17593.85 with a gap down of just 36 points. Prices moved further on the downside after recording its intraday high at 17642.15 within the first 5 minutes of trading. The index broke down below 17500 and then started a process of consolidation. Prices have moved sideways, eventually breaking on the downside, and prices have seen another leg of decline. A minor correction came after the index recorded its intraday low at 17291.65 in the late hour of trading and prices have finally dosed at 17327.35 which a loss of 302.45 points or 1.72% down. All the sectoral indices have contributed to the downside and dosed lower. PHARMA outperformed today and closed without much of a change. BANK and FINANCIAL led the bears today and dosed with more than a 2% loss. The short-term trend is down now. We have been tracking a trading range inside 17500 – 18000. This range is broken decisively on the downside giving us a pattern target of around 17000. The volatility again rose today exceptionally. The INDIA VIX, a benchmark index for volatility, is now moving above 20 suggesting high volatility, which is unfavourable for the bulls. After a wide range day today, we may see a few days of chop Pf and narrow trading. We should avoid trading the index for one or two days more. Support is now visible around 17200 and resistance is visible around 17500.

BANK NIFTY:

The BANK NIFTY opened at 40429.5 with a big gap down of 208 points. The index moved further on the downside after recording its intraday high at 40528.40 and broke below 40000. The index then consolidated and again broke on the downside. Prices have seen another leg of decline, recording its intraday low at 39412.70 and finally closing at 39555.35 with a loss of 1082 points. PVT and PSU BANKS both indices have performed almost the same today, saw a sharp decline, and closed lower by 2.62 % & 3.97 % respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the downside followed by ICICIBANK. BANK NIFTY continued moving lower for the third consecutive trading day and closed with a big loss of almost 3%. It was a trend day today on the downside where prices have recorded its intraday high near the opening tick and intraday low near the closing tick. We have been tracking a trading range in the BANK Index inside 40000 – 42000. Prices have broken down decisively on the downside and giving us a pattern target of around 38000. The short-term trend is down. After such a wide range day, prices tend to consolidate or move narrow. As of now, we should avoid trading the index and wait for an adequate setup to emerge.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
CHOLAMANDALAM 738.50 SELL The stock has given the breakdown on the intraday as well as the daily chart. The stock can be sold at 731.65 with a stop loss of 747.20 and for the target of 708.25.
GRANULES 323.45 BUY The stock is on the verge of giving the breakout on the intraday as well as the daily chart. The stock can be bought at 325.20 with a stop loss of 319.40 and for the target of 333.90.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
BANDHAN BANK 270 (PE) BUY 2.70 CMP 2.10 3.90 BREAK DOWN
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
CIPLA.22.09 Sep 1062.75 0.25 0.29 7677150 POWERGRID.22.09 Sep 203.1 -8 5.12 37662300
APOLLOHOSP.22.09 Sep 4425.2 -4.33 0.92 1467625
GUJGASLTD.22.09 Sep 487.2 -4.17 1.24 5737500
MFSL.22.09 Sep 780.25 -4 4.21 1882400
NAUKRI.22.09 Sep 3893.65 -3.91 0.45 1671750
                                                                        Short Covering                                                                       Long Unwinding
LALPATHLAB.22.09 Sep 2497.1 3.2 -7.83 1086500 M&MFIN.22.09 Sep 195.15 -13.07 -1.12 21104000
DIVISLAB.22.09 Sep 3645.8 1.49 -5.12 2430900 PNB.22.09 Sep 38 -6.29 -12.29 189200000
SUNPHARMA.22.09Sep 920.4 1.18 -2.02 21573300 IBULHSGFIN.22.09 Sep 118 -6.16 -11.01 26112000
AMBUJACEM.22.09Sep 540.45 1.04 -7.29 39956400 CHOLAFIN.22.09 Sep 737.35 -6.03 -6.07 6136250
METROPOLIS.22.09 Sep 1457.55 0.66 -5.37 804000 CANBK.22.09 Sep 229.25 -5.77 -8.73 37079100

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
Abbott India Limited 17853.75 -0.3 24724 17450 86.01 Nifty50 17327.35 -1.72 32383259
Infosys Limited 1365.45 -0.18 10426200 6033837 69.47 Niftybank 39546.25 -2.67 14141113
Honeywell Auto India Ltd 40167.7 -1.58 4146 2202 68.56 Nifty it 26592.35 -0.71 1392323
Nestleind 18495.9 -0.76 35842 20681 68.27 India Vix 20.59 9.4 280066999
Syngene 556 -1.4 484966 259884 67.19 Nifty Fmcg 44854.65 -0.5 497149
Icici Bank Ltd. 882.25 -2.34 15927517 10633901 66.85 Nifty Pharma 12610.65 -0.02 44760649
Zydus Lifesciences Limit 356.75 -1.78 734684 273817 64.77 Nifty Realty 436.75 -2.96 1275271802
Power Grid Corporation o 202.55 -7.97 65372042 36732551 62.94 Nifty Auto 13093.5 -1.71 42779796
Indian Oil Corp. Ltd. 67.45 -0.52 13578280 8480883 62.94 Nifty Metal 6027.35 -1.2 92873251
Power Finance Corporatio 110.2 -1.78 5478864 3266890 61.79 Nifty Financial Services 17947.25 -2.48 4910037

UPCOMING ECONOMIC DATA

   Domestic                                                                                                                                                  International
INR: RBI MPC Meeting Minutes on 28th September, 2022

INR: Interest Rate Decision on 30th September, 2022

 USD: Core Durable Goods Orders (MoM) (Aug) on 27th September, 2022

USD: New Home Sales (Aug) on 27th September, 2022

NEWS UPDATES

  • Indian benchmark indices made a gap down opening and closed in red for the third consecutive session. Nifty50 closed at 17327.30 (-1.72%) and Sensex closed at 58098.92 (-1.73%). Among sectors, Selling was visible in Banks, Financials, Capital goods, and Reality whereas Nifty pharma closed in green.

  • The Indian rupee weakened past 81 against the U.S. dollar for the first time. The Indian rupee has depreciated 40 paise over its previous close to a fresh record low of 81.26 against the greenback early on Friday.

  • Nestle SA plans to invest Rs 5,000 crore in India by 2025, The capital expenditure is earmarked for setting up new plants, expansion of the product portfolio, and acquisitions, Schneider said. Nestle India Ltd., currently operates nine plants across the country. The investment, which would be subject to clearances and approvals, will also aid job creation.

  • Mahindra & Mahindra Financial Services Ltd. hit the lower circuit after the company said it would repossess fewer vehicles than its usual flow, as the RBI in its order had said the company must suspend all recovery and repossession actions through third-party arrangements. The order had come after a tractor repossession action in Jharkhand had allegedly led to the death of a pregnant woman.

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

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
CORALAB General 26-Sep-22 ITI Preferential Issue of shares 28-Sep-22
EUROLED General 26-Sep-22 KINGSINFR General 28-Sep-22
GENNEX General 26-Sep-22 PHYTO General 28-Sep-22
GOVAI General 26-Sep-22 ROLTA Audited Results 28-Sep-22
HOTLSILV General 26-Sep-22 ANJANIFOODS Stock  Split 29-Sep-22
ROLTA Audited Results 26-Sep-22 JAINCO General 29-Sep-22
SMEL Issue Of Warrants;General 26-Sep-22 KAARYAFSL General 29-Sep-22
STARHFL Increase in Authorised Capital;Preferential Issue of shares;General 26-Sep-22 HERITGFOOD Right Issue of Equity Shares;General 30-Sep-22
TTFL General 26-Sep-22 INTETHR A.G.M. 30-Sep-22
VISVEN General 26-Sep-22 MDRNSTL Quarterly Results 30-Sep-22
DDIL Stock  Split;General 27-Sep-22 NAYSAA A.G.M. 30-Sep-22
DHANFAB General 27-Sep-22 SAGARSOFT Quarterly Results 30-Sep-22
GPTINFRA Bonus issue 27-Sep-22 SCANPRO A.G.M. 30-Sep-22
IFCI Preferential Issue of shares 27-Sep-22 SUPREMEINF Quarterly Results 11-Oct-22
LANCER General 27-Sep-22 INFY Quarterly Results;Audited Results;Interim Dividend 13-Oct-22
OCEANIC Quarterly Results;General 27-Sep-22 BAJAJ-AUTO* Quarterly Results 14-Oct-22
VALECHAENG Audited Results 27-Sep-22 HDFCBANK Quarterly Results 15-Oct-22
GAL Rights Issue 28-Sep-22 ICICIBANK Quarterly Results 22-Oct-22
GUJINV General 28-Sep-22 ABB Quarterly Results 11-Nov-22

CORPORATE ACTION

Company Name Ex-Date Purpose
SCFL 26-Sep-22 Buy Back of Shares
BHARATGEAR 27-Sep-22 Bonus issue 1:2
EXCEL 28-Sep-22 Bonus issue 1:2
EXCEL 28-Sep-22 Stock  Split From Rs.10/- to Rs.1/-
PONDYOXIDE 28-Sep-22 Bonus issue 1:1
RAMRAT 28-Sep-22 Bonus issue 1:1
WESTLEIRES 28-Sep-22 Dividend – Rs. – 0.1000
ALFAVIO 29-Sep-22 Dividend – Rs. – 0.0500
THAMBBI 29-Sep-22 E.G.M.
LEHAR 04-Oct-22 E.G.M.
ACCELYA 06-Oct-22 Final Dividend – Rs. – 45.0000
SPAL 06-Oct-22 Buy Back of Shares
RUCHIRA 07-Oct-22 Bonus issue 1:10
PGHH 04-Nov-22 Final Dividend – Rs. – 65.0000
GILLETTE 10-Nov-22 Final Dividend – Rs. – 36.0000
PGHL 15-Nov-22 Final Dividend – Rs. – 11.5000

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