Morning Outlook 17th May, 2022

NIFTY:

Nifty opened at 15845.10 with a gap up of 63 points. The index first moved down, filled the gap, and recorded its intraday low at 15739.60 within the first five minutes of trading. Prices then rallied for about one hour and recorded its intraday high at 15977.95. The index faces strong resistance there and moved down again to come close around the opening tick. The index moved up again and saw a slow & steady up move towards the end of today’s trading session. Prices have finally closed at 15842.30 with a gain of 60.15  points or 0.38% up. AUTO and REALTY sectors have seen an outperformance today and closed wit h more than 2% gain. IT,FMCG, and PHARMA underperformed today and ended with some loss. We should now look fora trading opportunity in the direction of a breakout. The idea is to buy above 16000 or sell short below 15700.In case of a gap up above 16000 or a gap down below 15700, apply the first 15-minute rules. Keep a stop of 110 points and a target of 240 points from your entry price. Since the volatility is very high, we also recommend traders use the At The Money Options to execute this trade.

BANK NIFTY:

Bank Nifty opened at 33256 wit h a gap up of 170 points. The index first moved down, filled the gap, and recorded its intraday low at 33001.75. Prices then bounced up, saw a sharp intraday rally, and faces strong resistance around 33800. The index recorded its intraday high at 33821.65 and finally closed at 33643.35 wit h a gain of 557 points. PSU BANKS have outperformed today and ended with a gain of 2.91%.PVT BANKS have also moved up today and closed higher by 1.54%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside followed by SBIN.

Tomorrow, we should look for a trading opportunity in the direction of a breakout. The idea here is to buy on a breakout above 34000 or sell short on a breakdown below 33000.In case of a gap, follow the first 15-minute rule. Keep a stop of 300 points and a target of 800 points from your entry price.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• The declining risk appetite of investors amid rising rates and inflation continue to play spoilsport across markets. With persistent bears hammering, the prospects of a decent listing of Life India Insurance (LIC) has diminished, as per trends in the grey market. Shares of LIC were trading at a discount of Rs 15-20 a piece over its issue price of Rs 949 in the grey market ahead of its listing on Tuesday, May 17.
• Holcim will use cash raised from the sale of its Indian business for acquisitions focused on building products and solutions, Chief Executive Jan Jenisch said on Monday, with the cement-maker currently eyeing 10 potential targets. Holcim agreed to sell its Indian business to Adani Group for 6.4 billion Swiss francs ($6.38 billion), its largest divestment in years, as it seeks to lower its carbon profile and raise funds for takeovers.
• Bharat Forge’s electric vehicle business will become as huge as its overall automobile business by fiscal year 2025, company’s Chairman and Managing Director Baba Kalyani while speaking to CNBC TV18, said Bharat Forge is “setting up a greenfield facility in the US for aluminum components for EVs” The switchover to electric vehicle business will depend on “how fast the EV transition takes place” “In the next four years, by FY2025, EV component and electric vehicle business be as big as overall auto business.
• Tata Power Solar, the solar energy subsidiary of Tata Power, one of India’s largest integrated power company, said on May 16 that it has received a 300-megawatt solar energy project worth Rs 1,731 crore from state-owned NHPC. Located in Rajasthan, the project will be built under the IREDA’s CPSU scheme.

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

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