Morning Outlook 12th August, 2022

NIFTY:

The NIFTY opened at 17711.65 with a big gap of 177 points. The index did not move up and started drifting downwards after recording its intraday high at 17719.30. The decline was mild and the momentum was fragile but prices did not see any recovery. The index kept on moving downwards and recorded its intraday low at 17631.95. The intraday range was very narrow today and prices have finally closed at 17659 near its day low with a gain of 124.25 points or 0.71%. BANK, FINANCIAL, and IT outperformed today and ended with more than a 1.50% gain. FMCG underperformed today and ended with a loss of nearly 1%.METAL ended almost on a flat note today. We were long in the index around 17480 and for today, we have suggested staying long with a stop just below 17400 and a target around 17720. The NIFTY did not touch either level so our trade remained intact. However, in the morning, prices almost reached the target but missed a few decimal points. In such cases, traders can plan their exit when the targets are in the range of a few points. But, since our target level, 17720, did not come today, we are still in this trade. Moreover, prices have moved in our favor so we should now raise our stop along with a stop at 17580 and a target at 17720.

BANK NIFTY:

The BANK NIFTY opened at 38712.95 with a big gap up of 435 points. The index initially went lower but quickly found support and bounced up after recording its intraday low at 38648.90. Prices have moved up sharply, reached 38900, and then face strong resistance there for the rest of the day. The index recorded its intraday high at 38932.10 and finally closed at 38835.00 with a gain of 558 points. PSU BANKS have outperformed today and closed higher by 2.38%. PVT BANKS have also moved up and ended with a gain of 1.39%. Within the index, in terms of points, INDUSIND BANK contributed the highest on the upside while BANDHAN BANK contributed the lowest. We were long in the index around 38250 and for today, we have suggested staying long with a stop at 37950 and a target at 39050. The index did not touch either level so our trade is intact. Prices have moved in our favor today so we should now raise our stop loss. We are recommending traders to stay long with a stop at 38600 and a target at 39050. The short-term trend is up and we should look for buying only. A gap-up opening was sustained today and prices have added more during the day.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Adani Enterprises Ltd. plans to invest $5.2 billion in setting up an alumina refinery in the eastern Indian state of Odisha, as Gautam Adani, Asia’s richest man, adds one more business to his rapidly-expanding empire. The flagship company of the Adani Group got the approval to build the refinery and a captive power plant in Rayagada for an investment of 416.53 billion rupees ($5.2 billion), according to a Twitter post on Wednesday by the office of the State’s Chief Minister, Naveen Patnaik.

• Reliance Industries Ltd. invested $9.3 billion or Rs 73,764 crore outside its non-core businesses as billionaire Mukesh Ambani’s conglomerate continues expand footprint. The company invested a combined Rs 30,000 crore in Reliance 4IR Realty Development Ltd. and Reliance Projects & Property Management Services Ltd. Total investments in all businesses stood at Rs 2.86 lakh crore in the last fiscal. That compares with Rs 2.12 lakh crore in the previous financial year.

• ICICI Bank on Thursday joined the elite club of Rs 6 trillion market-cap with shares hitting a record high. The lender became the seventh Indian stock to hit such a milestone. Shares of ICICI Bank hit an all-time high of Rs 866.15 on BSE with market-cap of Rs 6.01 trillion. The stock surged nearly 17% so far this year.

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

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