Morning Outlook 16th June, 2022

NIFTY:

Nifty opened at 15729.25 without much of a gap. The index initially went up and then quickly went down. Prices find support around 15700 and again went up The rally faces strong resistance before reaching around 15800 and then went into a process of consolidation. The index recorded its intraday high at 15783.65 and broke on the downside. A decline brought prices below its early morning low and recorded an intraday low at 15678.90 towards the end of today’s trading session. The index finally closed at 15692.15 with a loss of 39.95 points or 0.25% down. METAL and OIL GAS led the bears today and ended with a loss of nearly 1% while AUTO led the Bulls today and ended with a gain of nearly 1%.BANK ended on a flat note.

This pattern represents contraction which could lead prices into a phase of expansion. Tomorrow, we should take a trade in the direction of a breakout. The idea is to wait till 09:30 AM and then look for a buying opportunity above 15800 or sell short below 15600.

BANK NIFTY:

Bank Nifty opened at 33317.80 without much of a gap. The index initially consolidated and then went down to record its intraday low at 33249.55. Prices then bounced up and saw a sharp intraday rally and then went into a process of consolidation. Prices fell again after recording its intraday high at 33554.55 and came close to its day low. The index finally closed at 33330 without much of a change. PSU and PVT BANKS both indices have performed almost the same today, saw a minor intraday decline, and ended with a loss of 0.38%& 0.10%.Within the index, in terms of points, AU BANK contributed the highest on the upside while HDFC BANK contributed the lowest.

Prices have recorded a pattern of Inside Day with NR7. These patterns represent contraction and the next move should be an expansion. Tomorrow, we should look for a trading opportunity in the direction of a breakout.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Yes Bank will seek shareholders’ approval next month to raise debt capital of Rs 10,000 crore through various modes on private placement basis. The bank’s annual general meeting is scheduled for July 15, 2022. “For enabling the bank to evaluate a potential fund raising at an appropriate time, the board of directors seek approval from members of the bank for borrowing/raising funds in Indian/foreign currency by issue of debt securities up to Rs 10,000 crore,” Yes Bank said in a regulatory filing.

• Hero MotoCorp-backed electric two-wheeler maker Ather Energy is in talks with several state governments to set up a new manufacturing facility in the country, according to sources.

• JSW Steel crude steel production in May on a standalone basis jumped 31 per cent to 17.89 lakh tonnes, the company said on Wednesday. The crude steel output in May of FY’21 was 13.67 lakh tonnes. The flagship company of the USD 22 billion JSW Group stated that production of flat-rolled products also expanded by 29 per cent to 12.84 lakh tonnes for the month compared to 9.99 lakh tonnes in the same month last fiscal.

• The Adani Group has gained the most in terms of value in the six months to April 2022, with a 88.1 per cent jump to Rs 17.6 lakh crore, a report said on Wednesday. In comparison, billionaire Mukesh Ambani’s Reliance Industries — which houses nearly all its ventures — saw a 13.4 per cent rise in value to Rs 18.87 lakh crore, which helped it retain the top rankings in Burgundy Private Hurun India 500 rankings.

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

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