Morning Outlook 10th August, 2022

NIFTY:

The NIFTY opened at 17401.50 without much of a gap. The index initially moved lower but soon found support and quickly bounced up. Prices recovered and rallied higher. The index recorded its intraday low at 17359.75 and soon came into positive territory. The rally continued for the whole day with minor dips in between. The NIFTY recorded its intraday high at 17548.80 and closed at 17525.10 near its day’s high with a gain of 127.60 points or 0.73% up. METAL outperformed today and ended with a gain of 1.29% followed by BANK, FINANCIAL, and AUTO which gained nearly 1%. PHARMA and IT ended on a flat note today. The NIFTY started the week with gains. It was a trend day today on the upside where prices have recorded their intraday low near the opening tick and intraday high near the closing tick. The short-term trend is up and prices have broken out from a narrow trading range on the daily timeframe chart. Support is now visible around the 17150 – 17200 zone while resistance should emerge around 17700. As of now, the short-term trend is up as the index is making a bullish pattern of higher highs and higher lows. We should look for buying opportunities only.

BANK NIFTY:

The BANK NIFTY opened at 37847.35 with a gap down of 60 points. The index initially moved lower for the first 5 minutes of trading and recorded its intraday low at 37681.45. Prices then bounced up and quickly recovered all the losses. Prices have rallied further, going above 38000 and recording their intraday high at 38302.35. The index finally dosed at 38246.25 with a gain of 339 points. PSU BANKS have underperformed today and closed lower by 0.45%. PVT BANKS have outperformed today and ended with a gain of 1.23%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while SBIN contributed the lowest. It was a trend day today on the upside where prices have recorded their intraday low near the opening tick and intraday high near the closing tick. The short-term trend is up and prices have crossed and closed well above 38000 resistance. We should look for buying only.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Equity-oriented mutual fund (MF) schemes received net inflows of Rs 8,898 crore in July — the lowest since October 2021 — and half of average monthly inflows received during the first half of the calendar year. Industry players blamed volatile market conditions and profit-taking for the sharp decline in net inflows.

• The domestic equity markets hit their highest levels in nearly four months on Monday, following a revival in overseas investors’ inflows and a fall in commodity prices. The Sensex gained 465 points, or 0.8 per cent, to close at 58,853 — its highest closing level since April 11. The Nifty50 ended the session at 17,525, following a gain of 127 points, or 0.7 per cent.

• Reliance Industries added 2.32 lakh jobs in FY 2021-22 which took its total workforce strength to 3.43 lakh at the end of FY22, according to the company’s integrated annual report. Reliance’s telecom arm Jio, which is India’s largest digital services platform, has completed 5G coverage strategy for top 1,000 cities, with 100 percent indigenous technology.

• Gold prices rose on Monday following a pullback in the dollar and U.S. Treasury yields, while investor focus shifted to U.S. inflation data for clues on the Federal Reserve’s rate hike plan. Spot gold rose 0.5% to $1,783.62 per ounce by 10:02 ET (1402 GMT). U.S. gold futures edged 0.5% higher to $1,799.60.

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

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