Morning Outlook 15th June, 2022

NIFTY:

Nifty opened at 15674.25 with a gap down of 100 points. The index initially went up and quickly turned down. Prices have recorded its intraday low around 15659.45 and taken a U-Turn. Prices have seen a sharp rally of nearly 200 points and face strong resistance around 15850.The index recorded its intraday high at 15858 and then turned down. The index has seen almost an equal down move when compared to the early morning rally and finally closed at 15732.10 with a loss of 42.30 points or 0.27% down. OIL GAS led the bears today and ended with a loss of more than 1% while REAL1Y led the Bulls today and ended with a gain of nearly 1%. IT METAL and PHARMA also did well today and ended with gains. The short-term trend is down and the current decline brought prices to a swing low recorded at 15671in March 2022.Prices have been holding this level so far .If the index breaks and closes below this level then we may see further weak ness in the markets. Resistance should now emerge around the 15900 – 16000 zone. A rally towards this zo ne and holding the resistance will also give us a shorting opportunity. As of now, we should avoid buying in the index.

BANK NIFTY:

Bank Nifty opened at 33728.65 with a big gap down of 753 points. The index moved further on the downside after recording its intraday high at 34752.45. That consolidation continued for the rest of the day, prices have recorded its intraday low at 34346.65 and finally closed at 33441.70 with a big loss of 1040 points. PSU and PVT BANKS both indices have performed almost the same today, saw a sharp intraday decline, and ended with a loss of 3.58% & 3.57%. Within the index, in terms of points, ICIC IBANK contributed the highest on the downside followed by HDFC BANK. As of now, we should avoid trading the index and wait for a suitable setup to emerge. If the index takes a U-Turn then we will look for a buying and if prices close below 33000 supports, then we will look for a shorting opportunity.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Anti-trust regulator Competition Commission of India (CCI) on Tuesday said it has approved acquisition of entire shareholding in AirAsia India by Air India, a wholly-owned subsidiary of Tata Sons. “The proposed combination relates to the acquisition of the entire equity share capital of AirAsia India Private Limited by Air India Ltd- an indirect wholly-owned subsidiary of Tata Sons Private Limited (TSPL). At present, TSPL holds 83.67 per cent of the equity share capital of Air Asia India,” stated the filed notice with CCI.

• The auction for the overseas media rights of the Indian Premier League (IPL), bunched under package D, has been completed, informed sources say. This package had Zee vying for it, given its presence in international markets. However, the winner’s name will be revealed once the e-auction process concludes. Attention now is on the digital rights of a special group of matches called package C. This group includes the opening game, final match, three play-offs and weekend double headers, a total of 18-20 of the best matches each season for the next five years.

• Two- and three-wheeler major Bajaj Auto on Tuesday informed stock exchanges that its board has deferred the stock buyback proposal. The company last went for share buyback in 2000, when shareholders approved the buyback of up to 18 million equity shares at a price of Rs 400 each.

• Fitch Ratings on Tuesday said the Reserve Bank is likely to raise interest rates further to 5.9 per cent by December 2022, on deteriorating inflation outlook. In its update to Global Economic Outlook, Fitch said India’s economy faces a worsening external environment, elevated commodity prices, and tighter global monetary policy.

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

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