Morning Outlook 12th July, 2022

NIFTY:

NIFTY opened at 16136.15 with a gap down of 84 points. The index did not fall further and started a process of consolidation in a tight narrow range. That consolidation eventually broke on the upside after recording the intraday low at 16115.50. Prices have seen a sharp intraday rally which filled the gap. However, the index again moved down in the last hour of trading and finally closed at 16216 above the opening price but with a minor loss of just 4.60 points or 0.03% down. All the sectoral indices have ended in green except IT. OIL GAS and METAL outperformed today, led the bulls, and closed with a gain of nearly 2%.

IT underperformed by ending 3.08% lower. This narrow range should lead prices to a phase of expansion in either direction. We should wait fora breakout from these narrow range days and then take trade in the same direction. The idea is to look for a buying opportunity above 16300 or sell short below 16000.In case of a gap up or down, wait for prices to come at the suggested entry level. Keep a stop of 110 points and a target of 240 points.

BANK NIFTY:

Bank Nifty opened at 35017.60 with a gap down of 108 points. The index quickly turned up after recording its intraday low at 35006.55 a few ticks below the opening price, filled the gap, and then rallied further. However, prices formed a trading range afterward and then broke it on the upside. The index rallied again and recorded its intraday high at 35543.10.Prices have seen a minor dip in the last 30 minutes of trading and finally closed at 35442.20 with a gain of 317 points.

Within the index, in terms of points, ICIC IBANK contributed the highest on the upside while KOTAK BANK contributed the lowest.

We should avoid trading the index since we do not have an adequate setup that could suggest us a trading opportunity. We should maintain our focus on intraday trading only for the time being.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Bharat Heavy Electricals Ltd (BHEL) on Thursday said it has successfully commissioned 100-MW floating Solar photovoltaic plant at NTPC Ramagundam in Telangana. The plant is installed across the natural raw water reservoir, saving valuable land resources, and also conserves water by reducing evaporation, a company statement said.

• Ajmera Realty & Infra India Ltd on Thursday reported an over three-fold jump in its sales bookings to Rs 400 crore for the quarter ended June on better demand. Its sales bookings stood at Rs 111 crore in the year-ago period, the company said in a statement. The carpet area sold by the company stood at 1,57,438 square feet in April-June period of this fiscal as against 61,663 square feet in the year-ago period.

• Tata Power on Thursday issued a clarification saying no officials of Tata Power are involved in the alleged bribery case involving Power Grid Corporation of India. Tata Power spokesperson in a tweet said, ““Tata Power clarifies that no officials of Tata Power are involved in the alleged bribery case involving Power Grid Corporation of India, being investigated by CBI. Some media reports have wrongly mentioned Tata Power’s name in the alleged case.”

• TCS will kick start corporate earnings season this week, and if one were to go by what analysts say the IT major may not disappoint the Street, with a nearly 15 per cent jump in revenues and a 7-11 per cent year-on-year rise in June quarter profit. The demand commentary could be strong, they said, even as margin may take a hit on wage hikes.

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

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