Morning Outlook 06th October, 2022

NIFTY:

The NIFTY opened at 17147.45 with a big gap up of 260 points. The index continued moving higher after recording its intraday low at 17117.30 and went above 17200 within a few minutes. The index kept on rising and then started facing resistance around 17250. Prices formed a consolidation there and moved around 17250 for the rest of the day. Prices have seen another rally in the late hour of trading, recorded its intraday high at 17287.30, and finally closed at 17274.30 with a gain of 386.95      or 2.29% up. All the sectoral indices have closed higher today led by METAL which ended with a gain of more than 3%. BANK, FINANCIAL and IT also performed well today and closed higher by nearly 3%. The short-term trend remained sideways despite the index breaking the 17200 resistance decisively. Markets made a smart recovery today, with the NIFTY comfortably closing above 17200 amid positive global cues and buying across sectors. We should step aside and avoid trading the index for the time being.

BANK NIFTY:

The BANK NIFTY opened at 38700.40 with a big gap up of 726 points. The index continued moving higher after recording its intraday low at 38596.90 and went above 39000. Prices then started moving sideways and continued that sideways movement till the end. The index recorded its intraday high at 39177.50 and finally closed at 39121.85 with a gain of 1147 points. PSU and PVT BANKS both have performed almost the same today, saw a sharp intraday rally, and closed higher by 2.97% & 3.16% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside followed by ICICIBANK. The short-term trend remains sideways. The support is visible at around 37500 while resistance is visible at around 39500. Our view is we may see a        process of consolidation within these levels. The index today came close to the resistance level. We should wait and see how prices move around 39500 resistance. As of now, we do not have an adequate trade setup that could suggest us a trading opportunity. Avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended on positive note with Nifty above 17200 amid buying across the sectors. At Close, the Sensex was up 1,276.66 points or 2.25% at 58,065.47, and the Nifty was up 387 points or 2.29% at 17,274.30. About 2507 shares have advanced, 842 shares declined, and 112 shares are unchanged. IndusInd Bank, Adani Ports, Coal India, Hero MotoCorp and Bajaj Finance were among the top gainers on the Nifty. On the other hand, Power Grid Corporation, Dr Reddy’s Laboratories were the top losers.

• India’s retail auto sales rose 10.9% year-on-year to 14.64 lakh units in September, according to Federation of Automobile Dealers Associations. The volumes, however, were still 3.8% lower than the corresponding pre-pandemic period in 2019.

• The government has approved a sum of Rs 26,000 crore to set up 25,000 telecommunication towers in the country over the next 500 days, as connectivity is vital for Digital India, telecom minister Ashwini Vaishnaw has said.

• Shares of HDFC Bank Ltd. gained after India’s largest private lender reported a rise in advances and deposits in the second quarter. Deposits rose 19% year-on-year to Rs 16.73 lakh crore in the quarter ended September, according to the bank’s quarterly business update released on the bourses Tuesday.

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

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