Morning Outlook 17th August, 2022

NIFTY:

The NIFTY opened at 17797.20 with a gap of 99 points. The index initially went down but quickly found support and bounced up after recording its intraday low at 17764.05. Prices rallied sharply, went above 17800, and recorded their intraday high at 17839.10. Prices then again moved down and came close to their early morning low and again found support there. Prices have seen a sharp intraday rally in the last 30 minutes of trading and finally closed at 17825.25 near its daily highs with a gain of 127.10 points or 0.72% up. AUTO outperformed today and ended with a gain of 2.52% followed by REALTY which ended nearly 2% higher. FMCG and OIL GAS also did well today by gaining over 1%. MEDIA was the only sector that ended with a loss today. The short-term trend is up. We have mentioned a resistance around 17700 which the index easily crossed above. This level should now act as a support level. The next likely resistance should now emerge around the 18000 mark. We are anticipating a dip or some kind of consolidation here since the index has seen a sharp upside move in the past few weeks. We should now avoid trading the index and wait for an adequate setup to emerge.

BANK NIFTY:

The BANK NIFTY opened at 39284.10 with a gap of 232 points. The index initially went up for half an hour and then turned down after recording its intraday high at 39444.60. Prices have seen an intraday decline but did not able to fill the gap completely and bounced back after recording its intraday low at 39119.90. Prices have seen a minor recovery and finally closed at 39247.30 with a gain of 195 points. PVT BANKS have outperformed today and ended with a gain of 0.68%. PSU BANKS have underperformed today and ended with a loss of 0.37%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while SBIN contributed the lowest. The short-term trend is up and we should look for buying only. We have mentioned that support is visible around 38000 while resistance should emerge around 39400-39500 zones.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s wholesale inflation fell to the lowest since February. Inflation, as measured by the Wholesale Price Index, stood at 13.93% in July 2022 against 15.18%, according to data released by the Ministry of Commerce and Industry on Tuesday. The gauge fell 0.13% over the previous month compared with a 0.65% decline in June.

• New age insurer Go Digit General Insurance filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The public issue consists of a fresh issue of equity shares worth up to Rs 1,250 crore and an offer-for-sale (OFS) up to 109,445,561 equity shares by promoter and selling shareholders.

• Board of Directors of the Samvardhana Motherson International in its meeting held today, i.e., August 16, 2022, has recommended issue of bonus shares in the ratio of 1 (one) bonus equity share against 2 (two) existing equity shares

• India’s stock benchmarks rose on Tuesday, aided by gains in auto, energy, oil and gas, fmcg and power stocks, amid slid in brent crude prices. Sensex and Nifty have risen for six days in a row, equalling the longest winning streak in 2022, so far.

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

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