Morning Outlook 16th August, 2022

NIFTY:

The NIFTY opened at 17659.65 without much of a gap. The index initially went down almost 60 points found support around 17600 and recorded its intraday low at 17597.85. Prices then bounced sharply from 17600, recovered all the losses in the morning, and went above 17700. The index kept on moving higher and recorded its intraday high at 17724.65. A sharp dip came towards the end of today’s trading session but the index again recovered and finally closed at 17698.15 with a gain of 39.15 points or 0.22% up. OIL GAS outperformed today and ended with a gain of 2.25% followed by METAL which ended at 1.64% higher. IT, PHARMA, and MEDIA underperformed today and ended with more than 1%. The short-term trend is up. Support is now visible around the 17450 – 17500 zone while resistance should emerge around 17700. Prices have been moving around 17700 over the past two days and finding it difficult to cross higher. Fresh trade should now emerge either on a dip toward the support level or on a decisive breakout above 17700. We should now avoid trading the index and wait for an adequate setup to emerge.

BANK NIFTY:

The BANK NIFTY opened at 38942.45 with a gap of 107 points. The index initially went up but quickly turn around and started drifting downwards. A sharp decline brought prices to their intraday low at 38739.95 and then prices have seen a reversal from there. Prices have moved up sharply, crossed above 39000, and recorded their intraday high at 39088.90. The index finally closed at 39052.35 with a gain of 217 points. PVT and PSU BANKS both have seen an upside move today and closed higher by 0.37% & 0.31% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while AU BANK contributed the lowest. BANK NIFTY continued its upside rally and closed higher for the fifth trading day. The index gained nearly half percent today and ended above 39000. The short-term trend is up and we should look for buying only. Fresh trade should now emerge either after a dip or if the index formed a narrow trading range. Support is visible around 38000 while resistance should emerge around 39400 – 39500 zones.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian automakers’ sales rose in July as the supply of semiconductors improved. The dispatches of passenger vehicles rose 11% year-on-year to 2,93,865 units in July, data from the Society of Indian Automobile Manufacturers showed. The segment comprising passenger cars, utility vehicles, and vans witnessed growth across categories. Sequentially, the sales were up 6.6%. Sales of two-wheelers increased 9.6% year-on-year to 13.81 lakh units in the month.

• Billionaire Gautam Adani-led Adani Group on Thursday said it will invest Rs 57,575 crore to develop two projects in metal sectors in Odisha, leading to creation of 9,300 direct jobs in the state. The group’s proposal to set up the two projects—a four million metric ton per annum integrated alumina refinery and a 30 MMTPA iron ore (value addition) project—has been approved by the High-Level Clearance Authority headed by Chief Minister Naveen Patnaik, the company said in a statement.

• Bata India on Friday said that schools reopening has aided the company’s growth in the first quarter (Q1) of financial year 2023 after it reported the highest ever quarterly sales — though slightly lower than estimates. Bata India on Thursday reported its Q1 earnings with the revenue from operations seeing an over three-fold jump to Rs 943.01 crore from Rs 267 crore in the pandemic-hit Q1 FY22. The consolidated net profit stood at Rs 119.37 crore, up 71.82 percent, against Rs 69.47 crore during the same period last year.

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

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