Morning Outlook 07th October, 2022

NIFTY:

The NIFTY opened at 17379.25 with a gap up of 105 points. The index initially went down, found support around 17350, and then turned up towards 17400. Prices have continued to face strong resistance around 17400, and its intraday high at   17428.80. Prices have seen a steep fall in the second half, broken down early morning low, and recorded its intraday low at 17315.65. The index finally closed at 17331.80 with a gain of 57.50 or 0.33% up. METAL continued its outperformance and closed higher by 3.25% followed by MEDIA. REALTY, and IT.FMCG and PHARMA underperformed today and ended in red while FINANCIAL closed without much of a change. The short-term trend remained sideways. We have seen a breakout from 17200 resistance and expect a follow-through today. That follow-through came but the momentum was very weak questioning the credibility of the breakout. These random movements are very difficult to catch and mostly leave the trader with lots of whipsaws. It is wise to step aside of now.

BANK NIFTY:

The BANK NIFTY opened at 39343.70 with a gap up of 222 points. The index initially consolidated and then moved up after recording its intraday low at 39232.90. A sharp rally brought prices to its intraday high at 39608.35 and then faces strong resistance there. A sharp decline brought prices to its opening tick and the index finally closed at 39239.25 with a gain of 118 points. PSU and PVT BANKS both indices have performed almost the same today, saw an upside move, and closed higher by 0.81% & 0.37% respectively. Within the index, in terms of points, ICICIBANK contributed the highest on the upside while HDFCBANK contributed the lowest. We have mentioned a resistance level of around 39500. Prices have moved down today after touching the resistance. The intraday range was very narrow today as the index moved within a range of just 376 points. The short-term trend remains sideways. The support is visible at around 37500. 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

• On Thursday, Indian benchmark indices ended on positive note in the volatile session with Nifty above 17,300. At Close, the Sensex was up 156.63 points or 0.27% at 58,222.10, and the Nifty was up 57.50 points or 0.33% at 17,331.80. About 2302 shares have advanced, 1054 shares declined, and 126 shares are unchanged. Among sectors, FMCG and pharma ended marginally lower, while metal, realty, capital goods up 2-3 percent. BSE midcap and smallcap indices up 1% each.
• India Services PMI In September Grows At Slowest Pace In Six Months The India Services Business Activity Index, compiled by IHS Markit, stood at 54.3 in September against 57.2 in August.
• The Indian rupee weakened by 11 paise against the U.S. dollar in early trade on Thursday. The currency fell 0.02% at open to 81.53 against the greenback. During the day, it depreciated as much as 0.47% or 38 paise to 81.90, just 5 paise off its record low. The currency has reversed all gains it made on Tuesday.
• World currency reserves shrink by $1 trn this yr in record drawdown. Reserves have declined by about $1 trillion, or 7.8%, this year to $12 trillion, the biggest drop since Bloomberg started to compile the data in 2003.

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

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