Morning Outlook 13th October, 2022

NIFTY:

The NIFTY opened at 17025.55 with a gap up of 42 points. The index initially went higher but faces resistance quickly and saw a sharp dip to fill the gap. Prices recorded its intraday low at 16960.05 and then again moved higher. This time, the index reached near 17100 and then saw a dip that found support quickly. The index again rises and recorded its intraday high at 17142.35. Prices have finally closed at 17123.60 near its daily highs with a gain of 140.05 points or 0.82% up. All the sectoral indices have moved higher today except MEDIA which ended with a loss of 0.07%. REALTY, FMCG, and BANK outperformed today and ended with a gain of over 1%. We have mentioned short-term support of around 17000. The index is holding this support despite closing lower yesterday. A trading range between 16800 -17400 remained intact. The short-term trend is sideways. We should now look for a trading opportunity in the direction of a breakout. Traders should look to buy above 17200 or sell short below 16950. In case of a gap up or down beyond these levels apply the first 15-minute rule. Keep a stop of 80 points and a target of 240 points from your entry price.

BANK NIFTY:

The BANK NIFTY opened at 38784.20 with a gap up of 138 points. The index initially went sideways and recorded its intraday low at 38606.40. Prices have broken on the upside and then rallied sharply to record its intraday high at 39164.10. The index finally closed at 39138.35 with a gain of 492 points. PSU and PVT BANKS both indices have performed almost the same today, saw a sharp intraday rally, and closed higher by 1.51% & 1.28% respectively. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while IClCIBANK contributed the lowest. It was a trend day today on the upside where prices recorded its intraday low near the opening tick and intraday high near the closing tick. The index consolidated in the first half while moving higher in the second half. Tomorrow, we should look to buy on a breakout above 39500 or sell short below 38500. In case of a gap up or down beyond the suggested entry-level, apply the first 15-minute rule. Keep 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 broke three-day losing streak on October 12 with Nifty closing above 17100. At Close, the Sensex was up 478.59 points or 0.84% at 57,625.91, and the Nifty was up 140.10 points or 0.82% at 17,123.60. About 1615 shares have advanced, 1727 shares declined, and 133 shares are unchanged.
• IT services major Wipro Ltd on October 12 said its consolidated net profit for the quarter ended September 30, 2022 fell 9.27 percent to Rs 2,659 crore from Rs 2,930 crore in the year-ago period.
• Ahead of Diwali, flight searches for travel between October 19 and October 24, have witnessed a 124 percent rise for domestic flights in India. For international destinations, flight searches were up by 133 percent higher than the pre-pandemic levels, according to the latest data released by KAYAK.
• India’s next union budget will focus on growth priorities, while addressing inflationary concerns, as extraneous pressures mount in energy, fertiliser and food, according to Finance Minister Nirmala Sitharaman.

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

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