Morning Outlook 6th December, 2021

NIFTY:

NIFTY opened at 17424.90 with a gap up of just 23 points. The index moved up further for the first five minutes of trading and recorded its intraday high at 17489.80, prices found resistance there and started drifting downwards. The index quickly erases all the morning gains and then falls further to record its intraday low at 17180.80.The index moved down almost 300 points intraday as the minor rallies did not hold long enough. Prices have finally closed at 17196.70 near its intraday low with a loss of 204.95 points or 1.18% down. All the sectoral indices have closed with a loss today except the MEDIA that ended with a gain of 1.73%. FINANCIAL and FMCG have led the bears today and ended with a loss of more than 1%.

Yesterday, we mentioned that “If the market has to resume the current downtrend, it would need to find resistance here and then head downward.“ We should now look for a shorting opportunity the trade is the same, look for a shorting opportunity below 17100. Keep a stop of 110 points and a target of 220 points from your entry price.

BANK NIFTY:

BANK NIFTY opened at 36497.30 with a gap down of just 38 points. The index first rallied, recorded its intraday high at 36844 and then started drifting downwards. Minor rallies in between did not hold long and prices kept on falling for the whole day. The index recorded its intraday low at 36062.85 and finally closed at 36213.60 with a loss of 350 points.

PVT and PSU BANKS both have seen an intraday decline today and closed with a loss of 0.76% and 0.27%. Within the index, in terms of points, INDUSIND BANK contributed the highest while KOTAK BANK contributed the lowest. Two days of rally fizzled out quickly as the index find strong resistance around 36800.

The short-term trend is sideways which was down before. We have also mentioned a possible trading range within 35300 – 36800 zones. This range remained intact. We should now wait for a decisive breakout. Till then avoid trading the index.

TECHNICAL PICKS

COMPANY NAME	CMP	B/S	RATIONALE+
TATASTEEL	1118	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  with a stop loss of 1080 and for the target of 1160.
ZEEL	349	BUY	The  immediate trend of the script is bullish. There is a positive  cross over of moving averages  as well as of the indicators therefore  it can be buy above 352 with a stop loss of 342 and target  of 356.

DERIVATIVE PICKS

Stock Name	Strike Price	Buy/Sell	CMP	Initiation	Stop Loss	Target	Remarks
KOTAKBANK	1900 PE	BUY	53	CMP	40	80	OI Increase

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Vodafone Group has filed an application with the government to settle its ₹20,000-crore retrospective tax dispute. This is a significant step towards resolving its long-standing issue, as both parties had been at loggerheads in local and international courts.

• The Central government has approved a plan to produce over five lakh AK-203 assault rifles at Korwa in Uttar Pradesh’s Amethi, in what official sources described as an endeavour to provide a big boost to self-reliance in defence manufacturing. Uttar Pradesh is on way to become a defence manufacturing hub of India, they said.

• Tightening of norms may increase non-banking finance companies’ (NBFCs) headline non-performing advances (NPA) by around one third, India Ratings and Research (Ind-Ra) said. “However, the impact on provisioning could be modest, given NBFCs are using ‘IND-As’ and generally for higher rated NBFCs, provision policy is more conservative than ‘IRAC’ requirements.”

• Eris Lifesciences on Friday said it has entered into a joint venture with MJ Biopharm to distribute human insulin, insulin analogues and GLP1 agonists.The Ahmedabad-based Eris will hold a 70% stake in the venture; the remaining 30% to be held by MJ Biopharm.

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

BOARD MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL