Morning Outlook 14th November, 2022

NIFTY:

The NIFTY opened at 18272.35 with a big gap up of 244 points. The index recorded its intraday low at around 18259.35 in its initial trades and then started moving higher. Some consolidation phase started which eventually broke on the upside. The index continued rising for the whole day at a slow pace and recorded its intraday high at 18362.30. The index again consolidated in the last hour of trading and finally closed at 18349.70 near its daily highs with a gain of 321.50 points or 1.78% up. IT outperformed today by closing 3.81% up followed by FINANCIAL which ended with a gain of 2.17%. AUTO and FMCG underperformed today and ended with minor losses. On the weekly timeframe chart, the NIFTY ended with gains for the fourth consecutive week. Now, the only hurdle visible around the lifetime high was recorded at 18604.45. The short-term trend is up a gain. We should be buyers as long as the NIFTY is trading above 18200 support levels. Traders should look for a buying opportunity on any intraday dip or consolidation breakout.

BANK NIFTY:

The BANK NIFTY opened at 42163.40 with a big gap up of 570 points. The index initially moved down and tried to fill the gap but failed to do so. Prices recorded its intraday low at 41918.10 and then saw a sharp upside move. The index recorded its intraday high at 42345.SO in the afternoon and then again moved down. Prices have finally closed at 42153.35 with a gain of 560 points. PSU BANKS have underperformed today and closed lower with a loss of 0.67%. PVT BANKS have outperformed today and closed higher with a gain of 1.43%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while FEDERAL BANK contributed the lowest. The short-term trend is up a gain as we have seen a decisive breakout from a narrow trading range inside the 40800 – 41700 zones. A follow-through on the upside may be able to confirm this breakout. Moreover, prices have made lifetime high today. We should wait for one more day and see how prices are behaving. We will plan our trade accordingly. Till then avoid carry -forward trades and focus on intraday only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• On Friday, Indian equity market ended sharply higher on November 11 with Nifty crossing 52-week, intraday. At Close, the Sensex was up 1,181.34 points or 1.95% at 61,795.04, and the Nifty was up 321.50 points or 1.78% at 18,349.70. About 1769 shares have advanced, 1591 shares declined, and 131 shares are unchanged. On the sectoral front, Information Technology and Metal indices rose 2-3 percent each, while selling was seen in the auto, FMCG and PSU Bank stocks.

• Moody’s Investors Service has lowered India’s growth forecast to 7% from 7.7% citing rupee depreciation and high oil prices amid a weakening global outlook.

• Mahindra & Mahindra Ltd.’s profit beat analysts’ estimates, led by higher sales in tractors and passenger vehicles. The company’s consolidated net profit rose 44% to Rs 2,772.7 crore in the Q2FY23. The company’s passenger vehicle sales jumped 84% year-on-year to 92,413 units while tractor sales rose 5.2% to 93,540 units.

• Auto sales in India rose in October, boosted by festival demand, but two-wheelers witnessed only marginal growth as inflation impacted rural markets. The total dispatches to dealerships rose 6.2% year-on-year to 19.23 lakh units in October, according to data from the SIAM. Passenger vehicles witnessed the highest growth, across segments, of 28.6% to 2.91 lakh units as dispatches rose in the sport utility vehicle and passenger car segments.

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

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