Morning Outlook 10th October, 2022

NIFTY:

The NIFTY opened at 17287.20 with a gap down of 44 points. The index filled the gap quickly, turned down, found support around 17250, bounced up sharply, and found resistance around 17330. Prices again went down, broke down its early morning lows, and recorded its intraday low at 17216.95. The index again bounced up and saw a sharp intraday rally with minor dips. The NIFTY recorded its intraday high at 17337.35 and finally dosed at 17314.65 near its daily highs with a loss of 17.15 points or 0.10% down. REALTY, MEDIA outperformed today and dosed higher by 0.32% & 0.38% respectively. OIL GAS and IT underperformed today and dosed lower by 0.72% & 0.70% respectively. On the weekly timeframe chart, the index closed higher this week after three down weeks. Meanwhile, on the daily timeframe chart, the index is consolidating inside the 16800 – 17400 zones. Next week, we should take a trade in the direction of a breakout. Look to buy above 17400 or sell short below 17200. Keep a stop of 80 points and a target of 240 points from your entry price.

BANK NIFTY:

The BANK NIFTY opened at 39093.50 with a gap down of 146 points. The index initially moved down and found intraday support around 38800. Prices have consolidated there for the whole afternoon and recorded its intraday low at 38807. So the consolidation eventually broke on the upside and prices have seen a sharp rally in the last two hours of trading. The index recorded its intraday high at 39235.05 and finally closed at 39199.40 with a loss of 40 points. PSU BANKS have underperformed today and closed lower by 0.23% whereas PVT BANKS have outperformed today and closed higher by 0.11%. Within the index, in terms of points, INDUSIND BANK contributed the highest on the upside while SBI contributed the lowest. On the weekly timeframe chart, the index closed higher this week after two weeks of sharp decline. On the daily timeframe chart, prices have formed a trading range within the 37500 – 39500 zones. The short-term trend remains sideways. Traders should look for a buying opportunity on a breakout above 39500 or a shorting opportunity on a breakdown below 38800. Keep a stop of 300 points and a target of 800 points.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended with marginal change in the highly volatile session on October 7.At Close, the Sensex was down 30.81 points or 0.05% at 58,191.29, and the Nifty was down 17.10 points or 0.10% at 17,314.70. About 1915 shares have advanced, 1445 shares declined, and 96 shares are unchanged.

• Retail investors continued to be net sellers in the cash market for the second month in a row in August. The category net sold Rs 2,000 crore worth of equities in August, following a Rs 5,500-crore selloff in July, according to data released by the National Stock Exchange.

• Shares of Hero MotoCorp Ltd. gained after Jefferies upgraded the stock of India’s biggest two-wheeler maker. The research house upgraded the stock to ‘buy’ from ‘hold’, with a target price of Rs 3,000 that implies a potential upside of 13.37%, according to its report. The automaker is set to launch its first electric scooter under the Vida brand on Friday.

• Titan Co. Ltd. gained the most in three months after the Tata Group company posted “healthy double-digit growth across most businesses” with overall sales growing 18% year-on-year. The jewellery and watch retailer in its quarterly business update said its store network continued to expand in the quarter ended September, with a net addition of 105 stores.

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

BOARD MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL