Morning Outlook 17th June, 2022

NIFTY:

Nifty opened at 15832.25 With a big gap up of 140 points. The index tried to hold onto its early morning gains but failed to do so and moved down after recording its intraday high at 15863.15. The decline continued for the rest of the day and minor rallies in between quickly fizzled out. Prices have recorded its intraday low at 15335.10 towards the end of today’s trading session. The index finally closed at 15360.60 near its intraday low with a loss of 331.55 points or 2.11% down. All the sectoral indices have closed lower today. All the sectoral indices have closed lower today. Metal was the worst hit and ended more than 5% lower. FMCG fell the least and ended half percent lower.

A gap-up opening did not sustain today. It was 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. The short-term trend is down and the NIFTY hit the 52-week low today. A wide range day today may result in a few narrow and choppy days. We should avoid trading for the next couple of days.

BANK NIFTY:

Bank Nifty opened at33648.80 With a big gap up of 318 points. The index tried to hold onto its early morning gains but failed to do so. The index recorded its intraday high at 33756.50 and then started moving down. Prices have consolidated for a brief amount of time in the afternoon that eventually broke on the downside and the index kept on falling to record its intraday low at 32537.95. Prices have finally closed at 32573.80 with a loss of 757 points and ended with a loss of 2.70% & 2.39% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the downside followed by kotakbank where prices have recorded its intraday high near the opening tick and intraday low near the closing tick. A narrow range day yesterday resulted in a wide down day. The short-term trend is down and bank nifty today makes 52 week low at 32537.95

TECHNICAL PICKS

DERIVATIVE PICKS

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Jaguar Land Rover (JLR) faces headwinds due to lockdowns in China for Covid-19, as the UK subsidiary of Tata Motors battles global supply chain issues caused by the war in Ukraine and difficult macroeconomic conditions. These problems may impact JLR financially in FY23, Tata Motors said in its annual report.

• Tata Power company plans to buy coal worth some Rs 12,000 crore from its Indonesian miner this financial year, saying the deal will give it the fuel without “interruptions”. The company owns a 30 per cent stake in the mine and as the order will be a related party transaction, it has sought its shareholders’ approval in the forthcoming meeting after its audit committee cleared the agreement. The coal is priced at an arm’s length basis.

• IRB Infrastructure Developers Ltd on Thursday said its special purpose vehicle and wholly-owned subsidiary Meerut Budaun Expressway Pvt Ltd has achieved the financial closure for the Rs 6,538-crore project in Uttar Pradesh. The Ganga Expressway Group 1 is a greenfield project to be carried out under Build, Operate and Transfer (BOT) mode.

• Indian private equity (PE) investments reached $70 billion in 2021 in more than 2,000 deals — an 87 per cent increase over the volumes in 2022, a new report showed on Thursday. Indian investments grew by 96 per cent over 2020 (excluding the mega deals of Jio Platforms and Reliance Retail). Much of the deal activity was in consumer tech and IT/ITES sectors.

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

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