Morning Outlook 13th May, 2022

NIFTY:

Nifty opened at 16021.10 With a big gap down of 146 points. The index recorded its intraday high at 16041.95 a few ticks above the opening price and drifted downwards. A sharp decline of about 200 points came within the first 20 minutes of trading and then prices started a process of consolidation. We have seen some Wild swings with the sideways movement and that eventually broke down. Another decline of almost 150 points brought prices to its intraday low at 15735.75 and then prices have seen some recovery to finally closed at 15808 with a loss of 359.10 points or 2.22% down. All the sectoral indices have ended in red today. BANK, FINANCIAL, and METAL led the bears today and closed w it h a loss of more than 3% followed by AUTO and REALTY which ended more than 2% lower.

VOLATILITY is also very high as the INDIA V IX again rose today to reach around 25 levels. We should avoid trading the index and wait for this Volatility to subsidize first.

BANK NIFTY:

Bank Nifty opened at 34289. Open with a big gap p down of 427 points. The index recorded its intraday high at 34341.20 within the first few minutes of  trading and moved down. Minor rallies were fizzled out quickly and prices kept on drifting downwards to record its intraday low at 33297.65 A minor recovery came in the last hour of trading and the index finally closed at 33559.55 with a loss of 1157 points. PSU BANKS has continued its underperformance for the past few trading days and ended 5.39% lower. VT BANKS has also seen a down move today a 1 closed with a loss of 3.50%. Within the index, in terms of points, HDFC BANK contributed the highest on the downside followed by the ICICIBANK.

In a volatile environment, trading almost always ends wit h a lot of whipsaws. So, it is best to avoid such an environment. Soon this volatility will cool off and we will get a trading opportunity in the index. Till then avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Larsen & Toubro on Thursday reported 10% rise in consolidated net profit at Rs 3,621 crore for the quarter ending March 31, 2022. The company’s Board of Directors recommended a final dividend of Rs 22 per equity share for FY22. The consolidated revenue, at Rs 52,851 crore, registered a y-o-y growth of 10%. International sales during the quarter, at Rs 17,550 crore, constituted 33% of the total revenue.
• Tata Motors on Thursday reported narrowing of consolidated net loss (attributable to shareholders of the company) to Rs 1,033 crore for the quarter ending March 31, 2022. It reported consolidated net loss of Rs 7,605 crore in the year-ago period and Rs 1,516 crore in Decemeber quarter. Consolidated revenue declined 11% to Rs 78,439 crore as against Rs 88,628 crore in Q4FY21.
• NTPC has invited bids for raising term-loan of up to Rs 5,000 crore, which would be utilised for capital expenditure for ongoing or new electricity generation capacity addition projects. “Proceeds of the loan shall be utilised towards capital expenditure for ongoing/new capacity addition programme, including the takeover of projects, renewable energy projects, coal mining & washeries, renovation & modernisation program of various projects, refinancing of loans and general corporate purposes etc.
• American automaker Ford on Thursday said that it has withdrawn plans to manufacture electric vehicles in India. The company has also communicated to the government that it no longer intends to invest in the country under the Performance Linked Incentive (PLI) scheme.

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

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