Morning Outlook 16th September, 2022

NIFTY:

The NIFTY opened at 18046.35 with a gap up of 43 points. The index initially moved up but soon faced resistance and started drifting downwards. Prices recorded its intraday high at 18096.15 and saw a sharp decline for the next two hours of trading. Prices found strong intraday support around 17900. The index spent the whole afternoon and evening session moving sideways, recorded its intraday low at 17861.50, and finally closed at 17877.40 with a loss of 126.35 points or 0.70% down. AUTO outperformed today by closing 0.71% up followed by METAL which ended with a gain of 0.12%. IT, PHARMA underperformed today and closed with a loss of over 1%. We have support around 17700 while resistance is visible around 18100. We expect the market to remain in consolidation mode for the next few days until the US Fed rate action is over. The INDIA VIX, a benchmark index for volatility, moved up today but is still moving around 18 consistently suggesting volatility is normal. However, it may increase due to global factors. As of now, we should avoid trading the index for the time being or prefer taking trades on an intraday basis only.

BANK NIFTY:

The BANK NIFTY opened at 41533.70 with a gap up of 160 points. The index initially moved up for the first 10 minutes of trading and then started drifting downwards after recording its intraday high at 41840.15. Prices have seen a sharp decline for the next two hours and recorded its intraday low at 41153.50. Prices then spent the rest of the day moving sideways and finally closed at 41208.45 with a loss of 165 points. PVT BANKS have underperformed today saw a sharp intraday decline and closed lower by 0.62%. PSU BANKS have closed on a flat note today. Within the index, in terms of points, IDFC FlRST BANK contributed the highest on the upside while AXIS BANK contributed the lowest. It was again a trend day today but, on the downside, where prices have recorded its intraday high near the opening tick and intraday low near the closing tick. A gap up did not sustain and the index closed with a loss. The index today breaks and recorded lifetime new highs but failed to add more on the upside. Yesterday, we have mentioned that the lifetime high around 41829.30 is the only visible resistance for the index, and today prices hold this resistance. We now have the support of around 40000 and resistance of around 42000. We should now look for a buying opportunity as far as prices are trading above the mentioned support level.

TECHNICAL PICKS

DERIVATIVE PICKS

 

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• On Thursday, Sensex was down 412.96 points or 0.68 percent at 59,934. Nifty shed 126.40 points or 0.70 percent, ending at 17,877.40. About 1648 shares advanced, 1754 shares declined, and 113 shares were unchanged. Among sectors, Nifty IT was the top loser, pharma and realty sectors took a beating too, losing over a percent.

• Shares of State Bank of India and ICICI Bank Ltd. continued their winning run, propelling the Nifty Bank Index to a fresh high. The index, constituted by 12 of the biggest listed Indian banks, gained 1% to 41,840.1 points in early trade on Thursday. This is the sixth consecutive day of its rally. Not just SBI and ICICI Bank, other constituents such as Bank of Baroda and Federal Bank have also extended their winning streaks. They are trading either near their 52-week highs or record highs.

• Shares of Tamilnad Mercantile Bank Ltd. declined on listing after its initial public offering was subscribed 2.86 times. The stock of the hundred-year-old lender listed at Rs 510 apiece on the BSE, a discount of 2.85% to its IPO price of Rs 525 apiece. The shares fell as much as 3.2% over its IPO price to trade at Rs 508 as of 10:04 am.

• Redington announced that it has entered into a strategic partnership with Google Cloud India. As a part of this collaboration, it will drive the distribution and adoption of Google Workspace and Google Cloud with SMBs, education and public sector, mid-market, and enterprise segments

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

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