Morning Outlook 11th October, 2022

NIFTY:

The NIFTY opened at 17094.35 with a big gap down of 220 points. The index initially consolidated for about two hours and recorded its intraday low at 17064.70. Prices eventually broke on the upside and saw a sharp intraday rally. The index tried to fill the gap but missed a few points and started drifting downwards after recording its intraday high at 17280.15. The index saw a decline and then quickly turn around for the last hour of trading. Prices have finally closed at 17241 near its daily highs with a loss of 73.65 points or 0.43% down. All the sectoral indices have moved down except IT which ended with a gain of 1.06%. FMCG and MEDIA underperformed today and ended with a loss of over 1% followed by REALTY & PHARMA which ended nearly 1% lower. A trading range inside the 16800 – 17400 zones remained intact. Prices are now trading near the resistance level. Moreover, short-term support is also visible around 17000. The short-term trend remained sideways. Tomorrow, we should look for a buying opportunity on a breakout above 17400 with a stop of 80 points and a target of 240 points.

BANK NIFTY:

The BANK NIFTY opened at 38641.55 with a big gap down of 558 points. The index initially consolidated, recorded its intraday low at 385 18.30, and then started moving higher. Prices have filled the gap with the help of a sharp upside move and then turned down after recording its intraday high at 39315.70. The index again rises in the last hour of trading and finally closed at 39113.70 with a loss of 86 points. PSU BANKS have underperformed today and closed lower by 1.01% whereas PVT BANKS have also gone down and ended with a loss of 0.26%. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while HDFC BANK contributed the lowest. A trading range within the 37500 – 39500 zones remained intact, and the short-term trend remains sideways. Tomorrow, we should look for a buying opportunity above 39500 with a stop of 300 points and a target of 800 points.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended on negative note in the highly volatile session on October 10. At Close, the Sensex was down 200.18 points or 0.34% at 57,991.11, and the Nifty was down 73.70 points or 0.43% at 17,241. About 1406 shares have advanced, 2056 shares declined, and 161 shares are unchanged.

• Indian rupee closed flat at 82.32 per dollar against previous close of 82.32.

• Shares of India’s Tata Motors Ltd fell as much as 4.6% on Monday after its Jaguar Land Rover (JLR) business wholesale volumes fell below expectations, prompting top brokerages to cut price targets and also warn of a slowdown next year.

• Shares of Hero MotoCorp Ltd. fell the most in nearly a month as analysts see the premium pricing of its first electric scooter Vida V1 impacting volume growth. India’s largest two-wheeler maker introduced two trims of the scooter—Vida V1 plus and Vida V1 Pro—tagged at Rs 1.45 lakh and Rs 1.59 lakh, respectively

• Billionaire Gautam Adani’s conglomerate is in advanced talks with the infrastructure-focused Jaiprakash Group to buy their cement business for about 50 billion rupees ($606 million), people familiar with the matter said.

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

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