Morning-Outlook-Feature-Image

morning-outlook-11may

NIFTY:

Nifty opened at 16248.90 with a gap down of 53 points. The index initially moved up but turned down quickly. Another rally started after the index found support around the opening tick. Prices have strongly bounced up around 16250 and then rallied almost 150 points to record its intraday high at 16404.55. The index found strong resistance there and turned down. Prices moved very narrow and choppy then but saw a sharp decline in the last hour of trading. The index finally closed at 16240.05 near its opening tick with a loss of 61.80 points or 0.38% down.

The short-term trend is down. as prices are making a bearish pattern of lower highs and lower lows. Volatility persists and rises as well. INDIA VIX, the volatility’s benchmark indices have risen to 22 levels. For a non-volatile environment, this needs to come around 15 -18 zone. Trading in such a volatile environment almost always leaves us with a lot of whipsaws. We need to wait for the volatility to subsidize first.

BANK NIFTY:

Bank Nifty opened at 34181.20 wit h a gap down of 140 points. The index recorded its intraday low at 34176.80 within the first five minutes of trading and then went up. A rally brought prices to its intraday high at 34781.80 and then finds strong resistance there. The index has seen a sharp decline in the last hour of trading and finally closed at 34418.20 wit h a gain of just 97 points. PSU BANKS have underperformed today and closed lower by 0.79%. PVT BANKS have outperformed today and ended wit h a gain of 0.75%. Within the index, in terms of points, HDFC BANK contributed the highest while AXIS BANK contributed the lowest.

It was a volatile day today where bulls were in a control for almost the whole day but bears came in the end and brought prices to yesterday’s closing price. We may see a process of consolidation or even a relief rally here. As of now, we do not have an adequate trading setup that could suggest us a trading opportunity. We are recommending traders step aside and avoid trading the index for the next few trading days.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE+
HDFCBANK 1341 BUY The stock is on the verge of giving the breakout on the intraday as well as the daily chart. The stock can be buy  with a stop loss of 1325 and for the target of  1360.
TATAMOTOR 391 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 390 with a stop loss of 395 and target of 385.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
GNFC 820 CE BUY 34 CMP 25 50 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
COLPAL.May 26 1581.1 0.02 6.2 2861600 COALINDIA.May 26 169.7 -7.34 9.37 47090400
CHOLAFIN.May 26 636.5 0.06 6.37 9100000 TATASTEEL.May 26 1164.95 -7.23 10.7 29580850
NESTLEIND.May 26 16593.8 0.12 3.74 348400 INTELLECT.May 26 608.7 -6.76 3.75 1577250
ICICIGI.May 26 1270.1 0.16 1.44 2973300 JINDALSTEL.May 26 463.75 -6.7 3.59 30673750
HINDPETRO.May 26 269.3 0.22 0.96 11939400 NATIONALUM.May 26 89.55 -6.57 3.32 66958750
                                                                        Short Covering                                                                       Long Unwinding
SRTRANSFIN.May 26 1164.75 0.66 -0.57 4455200 ONGC.May 26 153.5 -6.97 -1.68 45876600
SBILIFE.May 26 1078.3 0.99 -0.73 7359000 TATACHEM.May 26 962.85 -4.64 -1.86 6167000
UPL.May 26 790.9 1.4 -0.79 23008700 ABB.May 26 2231.2 -3.34 -8.26 408250
MARICO.May 26 501.3 2.14 -0.98 8365000 IDEA.May 26 8.7 -3.33 -0.08 7.32E+08
GUJGASLTD.May 26 505 -2.58 -1.85 3253750

UPCOMING ECONOMIC DATA

   Domestic                                                                                                                                                  International
INR: CPI (YoY) (Apr) on 12th May, 2022

INR: Industrial Production (YoY) (Mar) on 12th may, 2022

•USD: Core CPI (MoM) (Apr) on 11th May 2022

•USD: Crude Oil Inventories on 11th May, 2022

NEWS UPDATES

  • Ahmedabad-based Cera Sanitaryware Limited is set to expand its sanitaryware and faucetware manufacturing capacity in two phases for a capital expenditure (capex) of nearly Rs 200 crore. The Board of Directors on Tuesday approved the capex of around Rs 197 crore for the company’s expansion plans including a greenfield sanitaryware plant and a brownfield faucetware unit. Currently, Cera Sanitaryware Ltd. has a sanitaryware capacity of 2.5 million pieces per annum (mppa) and faucetware capacity of 3 mmpa. The company informed exchanges that the existing capacity utilisation is close to 90-100 per cent.
  • Asian Paints’ consolidated net profit fell marginally to Rs 850.42 crore in Q4FY22 as compared to year-ago period. Revenue from operations increased 18.66% to Rs 7,892.67 crore. Consolidated sales increased 20.6% to Rs 7,890 crore in Q4FY22 over Q4FY21, the company said on Tuesday.
  • Tyre major MRF Ltd on Tuesday reported a 50.26 per cent decline in consolidated profit from continuing operations to Rs 165.21 crore for the fourth quarter ended March 2022, hit by higher expenses, especially raw materials. The company had posted a consolidated profit from continuing operations at Rs 332.15 crore in the same period of the previous fiscal, MRF Ltd said in a regulatory filing. The consolidated revenue from operations in the fourth quarter was Rs 5,304.82 crore against Rs 4,816.46 crore a year ago, it added.
  • Cement maker Dalmia Bharat has reported 6.10 per cent decline in consolidated net profit at Rs 600 crore for the fourth quarter ended March 2022. It had clocked a net profit of Rs 639 crore in the year-ago period, Dalmia Bharat said in a regulatory filing.
Source: Economic Times,  Indian Express  ,Business Today, Livemint, Business Standard, Bloomberg Quint

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ADANIPORTS Final Dividend;Audited Results 11-May-22 MAGADHSUGAR A.G.M.;Dividend;Audited Results 11-May-22
BALAMINES Final Dividend;Audited Results 11-May-22 MANORAMA Quarterly Results;General;Audited Results 11-May-22
BIRLACORPN Dividend;Audited Results 11-May-22 MARALOVER Audited Results 11-May-22
BPL General 11-May-22 MRPL Final Dividend;Audited Results 11-May-22
BUTTERFLY Audited Results 11-May-22 NCC Dividend;Quarterly Results;Audited Results 11-May-22
CHOLAHLDNG Dividend;Audited Results 11-May-22 ORIENTCEM Final Dividend;Audited Results 11-May-22
DIAMINESQ Final Dividend;Audited Results 11-May-22 PARLEIND General 11-May-22
DICIND Quarterly Results 11-May-22 PETRONET Final Dividend;Audited Results 11-May-22
GAL Quarterly Results;Audited Results 11-May-22 PNB Dividend;Audited Results 11-May-22
IMAGICAA Increase in Authorised Capital;Pref. Issue 11-May-22 RADIXIND Final Dividend;Quarterly Results 11-May-22
INDIANB Final Dividend;A.G.M.;Audited Results 11-May-22 RELAXO Final Dividend;Audited Results 11-May-22
JAMSHRI Audited Results 11-May-22 RESONANCE Dividend;Audited Results 11-May-22
JONJUA Half Yearly Results;Audited Results 11-May-22 SAGCEM Quarterly Results;Audited Results 11-May-22
JSWISPL General;Audited Results 11-May-22 SEJAL General;Audited Results 11-May-22
KALYANKJIL Quarterly Results;Audited Results 11-May-22 SHRINIWAS Quarterly Results;Audited Results 11-May-22
KSB Quarterly Results 11-May-22 SKFINDIA Dividend;Quarterly Results 11-May-22
LAXMIMACH Audited Results 11-May-22 SKIPPER Dividend;Audited Results 11-May-22
LLOYDSTEEL Final Dividend;Quarterly Results;General 11-May-22 SMARTLINK Audited Results 11-May-22

CORPORATE ACTION

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
APTECHT 11-May-22 Interim Dividend – Rs. – 5.00 DYNPRO 12-May-22 Right Issue of Equity Shares
IRBINVIT 11-May-22 Income Distribution (InvIT) HDFCBANK 12-May-22 Final Dividend – Rs. – 15.50
THYROCARE 11-May-22 Interim Dividend – Rs. – 15.00 INDIANCARD 12-May-22 Special Dividend – Rs. – 25.00
COASTCORP 12-May-22 Interim Dividend – Rs. – 2.00 KPIGREEN 12-May-22 Interim Dividend – Rs. – 2.10

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