Morning Outlook 11th August, 2022

NIFTY:

Today, the NIFTY opened at 17566 with a gap of 41points. The index did not sustain at the higher levels and drifted downwards after recording its intraday high at the opening tick. Prices have seen a decline of more than 100 points and then found support around 17450. The index recorded its intraday low at 17442.80 and then rallied almost 100 points. However, prices moved sideways after trading a tight narrow range and finally closed at 17534.75 near the previous day’s closing price with a gain of just 9.65 points or 0.06% up. METAL continued its outperformance and ended with a gain of 1.62%. IT underperformed today and ended lower by 0.89%, BANK, Financial ended almost on a flat note today. A gap-up opening did not sustain today. However, prices did not move much and remained inside a narrow range of just 124 points. This narrow range suggests a wide range of days are ahead. The short-term trend is up as the index is making a bullish pattern of higher highs and higher lows. Support is now visible around the 17150 – 17200 zone while resistance should emerge around 17700. Tomorrow, Weekly F&O Expiry is scheduled so we may see higher volatility. As of now, we should look for buying opportunities only as far as the index is trading above 17400.

BANK NIFTY:

Today, the BANK NIFTY opened at 38298.85 with a gap of just 52 points. The index recorded its intraday low at 38155.30 in its initial trades and moved up. Soon prices face resistance and turned down but rallied again after a few minutes and recorded their intraday high at 38402.95. The index spent the rest of the day within these highs and lows and finally closed at 38277 with a gain of just 31points. PSU BANKS have underperformed today and closed lower by 0.46%. PVT BANKS have outperformed today and ended with a gain of 0.54%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside while SBIN contributed the lowest. It was a narrow range day in the index where prices have moved very volatile within a range of just 247 points and ended almost on a flat note when compared to the previous day’s closing price.

TECHNICAL PICKS

DERIVATIVE PICKS

Long Buildup						Short Buildup
Stocks	Price	Price%	OI %	OI		Stocks	Price	Price%	OI %	OI
TATACHEM.22.08 Aug	1079.4	12.17	37.3	7233000		MOTHERSON.22.08 Aug	121.55	-5.3	4.13	43416000
CUB.22.08 Aug	176.85	8.8	22.57	6355000		MRF.22.08 Aug	83085.85	-5.24	12.93	76170
HINDALCO.22.08 Aug	437.9	4.5	12.77	28632625		ABBOTINDIA.22.08 Aug	19673.15	-3.63	0.2	39160
POLYCAB.22.08 Aug	2427.65	2.58	5.57	1006800		IPCALAB.22.08 Aug	982.25	-3.19	4.8	851500
SAIL.22.08 Aug	80.35	2.49	2.99	98796000		DALBHARAT.22.08 Aug	1562.9	-3	1.21	1380000
Short Covering						Long Unwinding
Stocks	Price	Price%	OI %	OI		Stocks	Price	Price%	OI %	OI
IGL.22.08 Aug	381.15	5.79	-6.14	11554125		BALRAMCHIN.22.08 Aug	331.9	-6.19	-11.43	7812800
NMDC.22.08 Aug	116.2	2.56	-4.45	79606050		GRANULES.22.08 Aug	301.95	-4.29	-0.15	13420000
ESCORTSKUBOTALIMIT2	1660.75	2.52	-5.91	2468950		PERSISTENT.22.08 Aug	3655.55	-3.4	-8.04	505950
RAIN.22.08 Aug	197.2	2.23	-1.54	10535000		INDIAMART.22.08 Aug	4397.8	-2.2	-3.4	238650
GUJGASLTD.22.08 Aug	452.9	2.22	-9.43	4432500		ASTRAL.22.08 Aug	1942.15	-2	-9.11	600875

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian Railway Catering and Tourism Corporation on Wednesday reported 196% surge in net profit at Rs 246 crore for the quarter ending June 30, 2022. It reported net profit of Rs 82.5 crore in the year-ago period. The company’s revenue from operations rose 251% to Rs 853 crore in Q1FY23 from Rs 243 crore in Q1FY22.

• The Reserve Bank of India on Wednesday issued detailed guidelines that will increase scrutiny and supervision over digital lending apps and lenders who engage with them, after several complaints of malpractice against such apps. Only regulated entities such as banks and shadow banks will be allowed to disburse and collect re-payments on loans, and this will not be left to third parties, the central bank said.

• Hindalco Industries Limited, the Aditya Birla Group metals flagship, on Wednesday reported its highest consolidated net profit at Rs 4,119 crore, rising 48 per cent YoY, for the quarter ended 30 June, 2022. The company had posted a profit of Rs 2,787 crore in the year-ago period. Post declaration of results, Hindalco’s shares rose 4.73 per cent to Rs 441.40 against the previous close of Rs 421.45 on BSE. The stock is trading higher than the 5-day, 20-day and 50-day moving averages but lower than 100-day and 200-day moving averages.

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

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