Morning Outlook 5th April, 2022

NIFTY

Nifty opened at 17809.10 with a big gap up of 139 points. The index recorded its intraday low at 17791.40 a few ticks below the opening prices and bounced up. Prices have rallied very sharply for the next one hour of trading and recorded its intraday high at 18114.65.The index finds resistance there and moves down. The decline found support around 17900 and again moved up and reached almost at its morning highs. The index finally closed at 18053.40 with a gain of 382.95 points or 2.17% up. All the sectoral indices have closed with gains today. The BANK and FINANCIAL led the bulls today and ended 4% higher. IT and REALTY underperformed today and ended with minor gains.

The NIFTY continued its bullish momentum from the previous week and rallied higher. The index has gained more than 6% in the last six trading days in which, more than 3% gains came in the last two trading days. After such a sharp move price tend to move narrow or see a correction. The upcoming focus of the market will be on earnings reports and the RBI meeting this week. The short-term trend is up and we should now wait for a dip to  buy again.

BANK NIFTY:

BANK NIFTY opened at 36298.35 with a gap down of 73 points. The index recorded its intraday low at 36242.35 and started moving on the upside. Soon prices have started consolidating and eventually broke out on the upside. Prices have rallied higher and recorded its intraday high at   37209.80 and finally closed at 37164.15 with again of  793 points. PSU BANKS have outperformed today and ended with again of 3.99%. PVT BANKS have also performed well today and closed with a gain of 2.23%. Within the index, in terms of points, HDFC BANK contributed the highest followed by the SBIN.

A trading range inside 35500 – 36500 broken decisively on the upside and prices have closed above 37000. It was a trend day today on the upside where prices have recorded its intraday low near the opening tick and intraday high near the closing tick.

TECHNICAL PICKS

COMPANY NAME	CMP	B/S	RATIONALE+
ICICIBANK	746	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 736 and for the target of 765
CHOLAFIN	699	SELL	The  immediate trend of the script is bearish. There is a negative  cross over of moving averages  as well as of the indicators therefore  it can be sell below 698 with a stop loss of 710 and target  of 680.

NEWS UPDATES

• HDFC Bank has asked the Reserve Bank of India (RBI) to choose from two options it is offering for stake holding in life insurance subsidiary HDFC Life. The lender wants either be allowed to hold a 47.82 per cent stake HDFC Ltd in the insurer or buy additional stake in the company from the market. The second option will let the lender become compliant with norms that banks can either above 50 per cent or 30 per cent stake in a life insurance venture.
• Tata Power arm Tata Power Renewables has commissioned a 300 MW solar plant in Dholera, Gujarat with the country’s largest single-axis solar tracker system. The project will generate 774 MUs (million units) annually. Along with this, it will reduce approximately 704340 MT/year (tonnes per annum) of carbon emission. The installation entails 873012 Monocrystalline PV Modules.
• Indian Oil Corporation (IOC), engineering major Larsen & Toubro (L&T), and green energy player ReNew Power said on Monday they will form a joint venture (JV) to develop the green hydrogen sector in India. “The JV will focus on developing Green Hydrogen projects in a time-bound manner to supply Green Hydrogen at an industrial scale.
• The auction of 5G spectrum will be held on schedule and within the stipulated timeline, Minister for Communications Ashwini Vaishnaw said on Monday. His affirmation comes at a time when telecom regulator Trai’s 5G recommendations on spectrum pricing and other nuances, which were widely expected to come by March-end, have spilled over by a few days to early April.

 

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

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