Morning Outlook 15th September, 2022

NIFTY:

The NIFTY opened at 17771.15 with a big gap down of 299 points. The index found support around the opening tick and bounced up sharply after recording its intraday low at the opening tick. The rally continued and prices have filled the gap and come into positive territory. However, the index faces strong resistance there and could not move further higher. Prices have recorded its intraday high at 18091.55 and saw a sharp decline in the last hour of trading. The index finally closed at 18003.75 with a loss of 66.30 points or 0.37 % down. METAL and BANK outperformed today and closed with a gain of 1.58 % & 1.30 % respectively. IT underperformed today and closed with a loss of 3.36%. Tomorrow is the weekly expiry so we may see a wide range of days tomorrow as well. The INDIA VIX, a benchmark index for volatility, moved up today but still moving around 18 consistently suggesting volatility is normal. We should look for a buying opportunity on a dip or intraday consolidation breakout as far as the index is trading above 17700 support. Resistance is now visible around 18100 and if it breaks then around 18350 – 18400 zone

BANK NIFTY:

The BANK NIFTY opened at 40308.80 with a big gap down of 556 points. The index found support after the open, recorded its intraday low at 40288.90, and bounced up sharply. Prices have filled the gap and come into positive territory. The rally continued prices crossed above 41000 and recorded an intraday high at 41626.90. A brief correction came in the last 30 minutes of trading and the index finally dosed at 41373.65 with a gain of 509. PSU and PVT BANKS both indices have performed almost the same today. Prices have seen a sharp intraday rally and closed higher by 1.74 % & 1.50% respectively. Within the index, in terms of points, SBIN contributed the highest on the upside while AXIS BANK contributed the lowest. Prices have seen an intraday rally of more than 1000 points and crossed above 41000 resistance. Support is now visible around 40000 while the index is moving very near to its lifetime highs around 41829.30 so this is the only visible resistance for the index. The short-term trend is up. We should now look for a buying opportunity as far as prices are trading above the 39800 level.

 

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• On Wednesday, Sensex ends 200 pts in the red, Nifty around 18,000. Among the sectors, financials and metals added over a percent each while the IT index shed over 3 percent. About 1632 shares have advanced, 1740 shares declined, and 140 shares were unchanged.
• India’s wholesale inflation fell to the lowest since September last year, led by a broad-based decline in prices of most commodities. Inflation—as measured by the Wholesale Price Index—stood at 12.4% in August compared with 13.9% in July 2022, according to data released by the Ministry of Commerce and Industry on Wednesday. That’s the third straight month of decline in WPI inflation. The gauge fell 0.5% over the previous month compared with a 1% decline in July.
• Harsha Engineers International Ltd.’s Rs 755-crore initial public offering was fully subscribed on the first day, led by demand from retail and non-institutional investors. The IPO subscribed 2.25 times as of 4:00 p.m. on Sept. 14
• Tata Power Solar Systems Ltd (TPSSL) has received a letter of award worth Rs 596 crore from NHDC to set up a 125MWp floating solar project in Madhya Pradesh. NHDC is a joint venture of state-owned hydro power giant NHPC and the Madhya Pradesh government, a statement by Tata Power Company Ltd said on Wednesday.

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

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