Morning Outlook 18th April, 2022

NIFTY:

Nifty opened at 17599.90 with a gap up of 69 points. The index continued its strong momentum and rallied further to record its intraday high at  17663.65. Prices took a U-turn from that high and saw a sharp decline. The index kept on sliding downwards. Minor consolidation in between broke on the down side. The index recorded its intraday low at 17457.40 and finally closed at 17475.65 with a loss of 54.65 points or 0.31%down.

OIL GAS, METAL, and FMCG sectors have outperformed today and ended with a gain of more than half a percent. BANK, FINANCIAL, and AUTO underperformed today and ended with a loss.

NIFTY has closed with loss. the index broke down a narrow trading range today prices have seen a follow through on the downside confirming the breakdown. The short-term trend is sideways while the bias is more on the down side. We have a long weekend ahead and the market will be open next week on Monday. We will plan our trade according to Monday’s price movement.

BANK NIFTY:

Bank Nifty opened at 37887.30 with a gap up of 140 points. The index recorded its intraday high at 37988.60 within the first 5 minutes of trading and then started moving on the downside. Prices have kept on drifting downwards throughout the day, recorded its intraday low at 37408.20 and finally closed at 37439.80 with a loss of 308 points.

PSU BANKS have outperformed today, saw a minor rally and ended with a gain of 0.16%.PVT BANKS have underperformed today and closed with a loss of 0.87%. Within the index, in terms of points, SBIN contributed the highest while HDFC BANK contributed the lowest.

We should take a trade in the direction of a breakout. Buy above 38000 or sell short below 37300. Keep a stop of 300 points and a target of 1100 points from your entry price. In case of a gap, apply the first 15 minutes rule. That means buy above the first 15 minutes of high(in case of a gap up above 38000) or sell short below the first 15 minutes of low (in case of a gap down below 37300).

TECHNICAL PICKS

NEWS UPDATES

• Prestige Estates has registered the highest ever sales of Rs 10,382.2 crore, up 90% YoY and has clocked the highest ever collections of Rs 74,66.4 cr, up 47% YoY. Irfan Razack, Chairman, Prestige Group “We take immense pride in highlighting that Prestige Group has crossed Rs 10,000 cr presales benchmark. These record sales are backed by the robust response to our 16.77 mn sqft newly launched projects and for under construction and completed inventory”.

• Infosys on Wednesday reported a 12% year-on-year rise in its consolidated net profit (after minority interest) at Rs 5,686 crore for the fourth quarter ended March (Q4) as against Rs 5,076 crore a year ago. Revenue rose nearly 23% to Rs 32,276 crore in Q4FY22 as against Rs 26,311 crore in Q4FY21. “Infosys delivered highest annual growth in a decade with broad-based performance driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities, powered by ‘One Infosys’ approach. We continue to gain market share as a result of sustained clients’ confidence in our ability to successfully navigate their digital journeys”, said Salil Parekh, CEO and MD, Infosys.

• Amazon has warned Future Retail Ltd (FRL) against holding of next week’s meetings of its shareholders and creditors to approve the sale of its retail assets to Reliance Retail.

• Bharat Petroleum on Wednesday said it will invest around Rs 200 crore this fiscal to set up 100 fast electric vehicles charging corridors having 2,000 stations along the busiest 100 national highways. The company has recently opened its first EV charging corridor along the Chennai-Trichi-Madurai highway with one charging unit.

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

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