Morning Outlook 17th October, 2022

NIFTY:

The NIFTY opened at 17322.30 with a big gap up of 308 points. The index initially moved sideways and then saw a decline which found support quickly around 17250. Prices have seen a sharp upside move from there and went above the early morning highs. However, the index did not move further higher and started drifting downwards. The index recorded its intraday high at 17348.55, saw a sharp downside move, and recorded its intraday low at 17169.75. The index finally closed at 17185.70 near its daily lows with a gain of 171.35 points or 1.01% up. BANK, FINANCIAL, and IT outperformed today leading the bulls and closing higher by more than 1%. OIL GAS, AUTO, MEDIA, and METAL underperformed today and closed with some losses. The short-term trend is sideways. Moreover, short-term support is also visible around 17000. We should look for an intraday trade on Monday, which will be an Opening Range Breakout (15 minutes) on either side. On the weekly timeframe chart, the index closed with a loss when compared to Last Friday’s closing price and made an Inside Week which suggests the next week may be wider.

 BANK NIFTY:

The BANK NIFTY opened at 39446.05 with a big gap up of 789 points. The index initially went higher but quickly turned down to record its intraday low at 39196.30. Prices then rallied and breaks above 39500 to record its intraday high at 39570.85. Prices again went down and finally dosed at 39372.20 with againof715 points. PSU and PVT BANKS both indices have performed almost the same today, saw a sharp intraday decline, and closed lower by 1.58% & 1.07% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest. A trading range within the 37500 – 39500 zones remained intact, and the short-term trend remains sideways. However, prices moved above the 39500 resistance but came back at the end. Traders should look for a buying opportunity on a breakout above 39600 or sell short on a breakdown below 39100. In case of a gap beyond these levels apply the first 15-minute rule. Keep a stop of 300 points and a target of 800 points.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended on positive note on October 14 with Nifty around 17,200. At Close, the Sensex was up 684.64 points or 1.20% at 57,919.97, and the Nifty was up 171.40 points or 1.01% at 17,185.70. About 1757 shares have advanced, 1591 shares declined, and 146 shares are unchanged.
• Seven sectors, including bicycles, leather & footwear, toys and containers, may get Rs 35,000 crore under the next round of the Production Linked Incentive (PLI) scheme, sources have said.
• Consolidated net profit for the operator of the DMart chain of hypermarkets increased 64% over the previous year to Rs 685.7 crore in the quarter ended September, according to an exchange filing. That compares with the Rs 627.6-crore consensus estimate of analysts tracked by Bloomberg. Sequentially, however, its net profit grew 7% from Rs 642.89 crore.
• HDFC Bank Ltd. saw its net profit for the July-September quarter rise 20% year-on-year on higher net interest income and lower provisions. Net profit for the quarter stood at Rs 10,606 crore, compared with Rs 8,834.3 crore a year ago. This is the first time HDFC Bank has crossed Rs 10,000 crore in net profit.

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

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