Morning Outlook 15th December, 2021

NIFTY:

NIFTY opened at 17283.20 with a gap down of 85 points. The index first moved up but turned down quickly and saw a sharp decline. Prices have recorded its intraday low at 17225.80, found support there, and then again rallied. This time prices moved more than 150 points and recorded its intraday high at 17376.20.Prices have again moved down and then rallied in the last two hours of trading and finally closed at 17324.90 with a loss of 43.35 points or 0.25%. The MEDIA and PHARMA sectors have outperformed today and led the bulls while the AUTO and FINANCIALS have seen an underperformance and ended lower by nearly 1%.

It was a volatile day in the index where prices have seen some wild movement in both directions and finally ended almost flat. A gap down did not sustain as prices have seen a sharp intraday rally of almost 150points.The short-term trend is sideways as the index is facing it difficult to cross above the 17500 – 17600 resistance zone. Support is visible around 17000.We now have a large trading range in the index within these two boundaries.

 

BANK NIFTY:

BANK NIFTY opened at 36778.95 with a gap down of 184 points. The index moved further on the downside and recorded its intraday low at 36545.40. The index then rallied, recovered all the losses and recorded its intraday high at 37039.05. Prices then again moved down and finally closed at36893.80 with a loss of just 68 points. PSU BANKS have underperformed today and closed with a loss of 0.70%. PVT BANKS have also seen a decline today and ended lower by 0.13%. Within the index, in terms of points, ICICI BANK contributed the highest while KOTAK BANK contributed the lowest.

So, our short trade executed at 36700. Prices have neither touched the stop nor the target so this trade remained intact. Traders should stay short with stop at 37050 and a target at 35900. It was a volatile day where prices have opened with a gap down and then recovered all the loses and closes with minor loss below 37000. The short-term trend is sideways and index is moving very random. . Due to these factors our bias is mildly bearish.

TECHNICAL PICKS

COMPANY NAME	CMP	B/S	RATIONALE+
INDUSTOWER	266	SELL	The stock is on the verge of giving the breakout on the intraday as well as the daily chart. The stock can be sold below 265 with a stop loss of 272 and for the target of 250.
MCX	1787	BUY	The  immediate trend of the script is bullish. There is a positive  cross over of moving averages  as well as of the indicators therefore  it can be buy above 1790 with a stop loss of 1750 and target  of 1850.

DERIVATIVE PICKS

Stock Name	Strike Price	Buy/Sell	CMP	Initiation	Stop Loss	Target	Remarks
TECHM	1660	BUY	34	CMP	20	60	OI Increase

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Larsen & Toubro (L&T) on Tuesday said its construction arm has bagged a large order for its buildings and factories business from the Odisha government to construct clinical blocks and allied infrastructure for a hospital in Cuttack. The duration of the engineering, procurement, and construction (EPC) project is 30 months, the company said in a statement.

• The Reserve Bank of India on Tuesday issued the Prompt Corrective Action (PCA) framework for non-banking financial companies (NBFCs). This means NBFCs will have to strictly meet benchmarks on capital requirement, non-performing assets (NPAs), and asset quality. It may be recalled that the revised PCA framework for Scheduled Commercial Banks (SCBs) was issued on November 2, 2021.

• Bharti Airtel and technology services major Capgemini on Tuesday announced to collaborate on bringing India-specific, 5G-based enterprise grade solutions to the country. Capgemini’s 5G Lab within its Mumbai campus and Airtel’s 5G Lab in Manesar, Haryana, will be the development hubs. Two 5G use cases have already been deployed by Capgemini at Airtel’s 5G Lab, which are focused on smart health and immersive remote assistance for field operations and maintenance.

• Infosys on Tuesday announced that it has been selected by Finnish pharmaceutical company Orion Corporation to holistically transform its ERP and Planning platforms, enhance employee experience, and drive business value realisation.

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

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