Morning Outlook 28th April, 2022

 NIFTY:

Nifty opened at 17073.35 wit ha big gap down of 127 points. The index first consolidated for the first 15 minutes of trading and recorded its intraday high at 17110.70.Prices found strong resistance there and started moving on the downside. A sharp decline of more than 100 points brought prices to its intraday low at 16958.45 and then finds support there. A rally started from that level which brought prices to its early morning highs and the index finally closed at 17073.35 above its opening tick with a loss of 162.40 points or 0.94% down. All the sectoral indices have seen a downside move today except the MEDIA which ended with minor gains. BANK, FINANCIAL and OOIL GAS led the bears today and ended more than 1% lower.

A trading range inside 17000 – 17500 remained intact and today was the eighth day when prices have moved within these levels. A pattern of NR7 can be seen on the daily timeframe chart from the last three trading days indicating a phase of contraction which should eventually lead prices to a phase of expansion. The short-term trend sideways now suggests a move can come one either side of the market. As of now, we should avoid trading the index and wait for a decisive breakout from the current trading range.

BANK NIFTY:

Bank Nifty opened at 36067.55 wit h a gap down of 323 points. The index first moved up but did not sustain higher, and faced strong resistance. Prices have recorded its intraday high at 36175.90 and then drifted downwards. A sharp decline brought prices to its intraday low at 35747.15 and then prices bounced up from there. The index finally closed at 36045.85 wit ha loss of 345 points.

The short-term trend is sideways. We have mentioned a narrow trading range inside the 36000 – 37000 zone. Prices have remained inside this range. The support levels are now shifting at 35800. intraday movement continued to be volatile. We may see a direction move in the next few trading days.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Life Insurance Corporation of India (LIC) will come out with its IPO on May 4. The company has set a price band at Rs 902 to Rs 949 per equity share, said Dipam Secretary Tuhin Kanta Pandey. He added that it will be called LIC 3.0 phase. In a press conference he said, “LIC IPO will not crowd out capital and monetary supply in the market. The IPO is right sized, given the constraints in the market. Despite the reduced size, LIC IPO is the biggest in India yet LIC is likely to list on the stock exchanges on May 17.

• Hindustan Unilever (HUL) on Wednesday said its standalone net profit for the quarter ended March 2022 stood at Rs 2,327 crore, up 8.58 per cent from Rs 2,143 crore posted in the same quarter last year. In an analyst poll conducted by ET Now, the projection of net profit stood at Rs 2,180 crore. The company said its revenue from sale of products during Q4FY22 came in at Rs 13,190 crore, up 10.40 per cent from Rs 11,947 crore in the year-ago quarter.

• Telecom operator Bharti Airtel has acquired around 7 per cent stake in cloud-based networking solutions provider Cnergee Technologies under the Airtel Startup Accelerator Program. The stake acquisition will enable Airtel to sharpen its NaaS proposition for Small and Medium Businesses (SMBs), who are looking to accelerate their shift to cloud-based applications, Airtel said in a statement.

• Chennai-based two-wheeler major TVS Motor Company has entered into a strategic partnership with Rapido, a leading on-demand delivery and mobility platform. As part of the deal, TVS Motor and Rapido will look to collaborate by leveraging synergies of their respective businesses in the fast-moving mobility market in India.

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

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