Morning Outlook 16th November, 2022

NIFTY:

The NIFTY opened at 18362.75 with a minor gap up of just 33 points. The index initially moved lower, filled the gap, and then fell further to record its intraday low at 18282. Prices have found intraday support there and started consolidating around 18300. The consolidation broke on the upside in the afternoon but prices did not move much higher. A sharp rally started towards the end of today’s trading session and prices have recorded its intraday high at 18427.95. The index finally closed at 18403.40 near its daily highs with a gain of 74.25 points or 0.41% up. BANK and OIL GAS outperformed today by closing with nearly 1% gains. MEDIA and REALLY underperformed today and closed with a minor loss. FMCG and IT ended on a flat note today. The short-term trend is up and there is no doubt about it as prices are trading near the swing highs. The index is now heading toward its lifetime high which was recorded at 18604.45. A narrow range day yesterday, resolved on the upside today. Support is now visible around the 18200 – 18300 zone. A close below 18200 may change the short-term trend to sideways. Volatility is very low as the INDIA VIX, a benchmark index for volatility is now moving below level 15. Traders should look for buying opportunities only on any intraday dip or consolidation breakout.

BANK NIFTY:

The BANK NIFTY opened at 42234.85 with a gap up of 162 points. The index initially went downwards and almost filled the gap and then started consolidating. Prices recorded its intraday low at 42079.55 and then saw a breakout. The index rallied sharply and recorded its intraday high at 42450.05. Prices have finally closed at 42430.25 near its daily highs with a gain of 358 points. PVT and PSU BANKS both performed well today, saw an upside move, and finally closed with a gain of 0.67% & 0.33% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. The short-term trend is up and the index has recorded lifetime new highs today. We now have a support zone for the BANK Index within the 41500 – 42000 range. There is no visible resistance as prices are trading in uncharted territory. Since the volatility is very low, so we may see much movement during the day. That is why the index is moving narrowly for the past few days. We should look for buying only on an intraday basis.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended higher in the highly volatile session on November 15 with Nifty above 18400.At Close, the Sensex was up 248.84 points or 0.40% at 61,872.99, and the Nifty was up 74.20 points or 0.40% at 18,403.40. About 1582 shares have advanced, 1814 shares declined, and 120 shares are unchanged.

• India’s trade deficit widened to $26.91 billion in October from $25.71 billion in September, according to data released by commerce ministry on November 15. Exports in October contracted 16.65 percent on year to $29.78 billion in October.Imports in October rose to $56.69 billion from $53.64 billion a year ago.

• Wind power operation and maintenance service provider Inox Green Energy Services has seen muted response for its initial public offering. The offer has garnered bids for 10.28 crore shares against IPO size of 6.67 crore shares, getting subscribed 1.54 times on November 15, the final day of bidding.

• Paytm, India’s leading digital payments brand, faces another reckoning, a year after it recorded the grisliest initial public offering in India’s history.

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

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