Morning Outlook 11th April, 2022

NIFTY:

Nifty opened at 17698.15 with a gap up of 59 points. The index initially moved down, filled the gap, and recorded its intraday low at 17600.55. Prices have found strong support there, started a process of consolidation, and then broke it on the upside. Prices have seen a sharp rally of more than 200 points and recorded its intraday high at 17842.75.Prices have seen a minor correction and then consolidation towards the end of today ‘s trading session. The index finally closed at 17784.35 with a gain of 144.80 points or 0.82% up. All the sectoral indices have closed with gains today except the IT sector which ended with a minor loss of 0.08%.The FMCG, METAL outperformed today and closed with a gain of more than 2%.

Yesterday, we mentioned that holding 17600 supports will suggest us a buying opportunity in the index. On Monday, we should look for a buying opportunity on a breakout above today’s high which is recorded around 17850. In case of a gap up above 17850, look to buy above the first 15 minutes of high. But if the index did not go up then we should look for a shorting opportunity on a breakdown below 17600. Keep a stop of 110 points and a target of 240 points from your entry price.

BANK NIFTY:

BANK NIFTY opened at 37619.70 without much of a gap. The index initially moved very volatile and recorded its intraday low at 37405.20. Prices finds strong support there, bounced up and recorded its intraday high at 37884.20. The index again consolidated in the last hour of trading and finally closed at 37798.45 with a gain of 195 points. PSU and PVT BANKS both have performed almost same today, saw an intraday rally and ended with gains of 0.80%& 0.51% respectively. Within the index, in terms of points, ICIC IBANK contributed the highest while IDFC FIRST BANK contributed the lowest.

The short-term trend is up. Moreover, prices have locked inside a narrow trading range from the last three trading days. The levels are 37300 as a support and 37800 as a resistance .A breakout from this range may give us a trading opportunity.

TECHNICAL PICKS

COMPANY NAME	CMP	B/S	RATIONALE+
APOLLOHOSP	4606	BUY	The stock is on the verge of giving the breakdown on the intraday as well as the daily chart. The stock can be buy  with a stop loss of 4570 and for the target of  4700.
RBLBANK	128.10	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 128 with a stop loss of 129 and target  of  125.

NEWS UPDATES

• Fast-moving consumer goods (FMCG) sales slowed in the March quarter on the back of a sharp rise in prices, especially in commodity products that include edible oil, retail Intelligence platform Bizom said. Consumers in both rural and urban areas have started to downtrade in products. We are, however, seeing an immediate slowdown in sales at urban areas as rural consumers buy smaller packs more frequently, Bizom said.
• Hit by semiconductor shortage, Jaguar Land Rover (JLR) on Friday said its retail sales declined by 36 per cent to 79,008 units in the fourth quarter of 2021-22 fiscal as compared with same period last year. The Tata Motors-owned luxury automaker noted that the retail sales for the three-month period continued to be constrained by the global semiconductor shortage. As on March 31, 2022, the total order book has grown to over 1,68,000 units, up around 14,000 orders from December 31, 2021 period.
• Ambuja Cements expects demand in the cement industry to grow over 7 per cent in 2022, adding it is “well-braced” to meet the requirements. The growth would be helped by factors such as infrastructure growth, demand for housing, increase in rural incomes and industrial growth, said Ambuja Cements, part of Swiss building material major Holcim group (earlier LafargeHolcim).
• ABB India announced expansion of its Gujarat factory to meet growing global demand for digital substation products and digital systems. Located within ABB India’s largest manufacturing campus, this new factory will meet the growing demand for a wide range of digital substation products and digital solutions in India and in more than 50 countries.

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

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