Morning Outlook 18th August, 2022

NIFTY:

The NIFTY opened at 17868.15 with a gap up of 43 points. The index initially went down, filled the gap but quickly found support and bounced up after recording its intraday low at 17833.35. Prices rallied sharply and went above 17900 within a few hours and then started a process of consolidation there. Another sharp move came after lunch and the index recorded its intraday high at 17965.95. Prices have seen a sharp intraday decline in the last 30 minutes of trading and finally closed at 17944.25 near its daily highs with a gain of 119 points or 0.67% up. All the sectoral indices have closed higher today except AUTO which ended with a loss of 0.42%. IT, MEDIA out performed today and ended with a gain of over 1% followed by BANK and FINANCIAL which gained over half percent. The short-term trend is up. We have a support level of around 17700 in the NIFTY index. A close below this level will indicate avoid buying. Strong support is visible around the 17450 – 17500 zone. A close below this support will suggest us taking short trade in the index. A likely resistance should now emerge around the 18000 mark. We are anticipating a dip or some kind of consolidation here since the index has seen a sharp upside move in the past few weeks. We should now avoid trading the index and wait for an adequate setup to emerge.

BANK NIFTY:

The BANK NIFTY opened at 39351.30 with a gap up of 104 points. The index initially went down, filled the gap, and then fall further to record its intraday low at 39202.80. Prices then bounced up and saw a modest up move for the whole day. The index recorded its intraday high at 39504.50 and finally closed at 39416.20 with a gain of 169 points. PSU BANKS have significantly outperformed today and ended with a gain of 2.26%. PVT BANKS also moved up today and ended with a gain of 0.51%. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. BANK NIFTY continued its upside momentum by opening with a gap up. However, in the morning prices showed some weakness but recovered quickly and the index ended with a gain of more than half percent.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks rose for the seventh day in a row, making it the longest winning streak of 2022, aided by gains in information technology, consumer durables and telecom stocks. The Sensex reclaimed 60,000 levels after over four months while Nifty 50 inched closer to the 18,000 mark.

• Shares of RateGain Travel Technologies Ltd. surged the most in more than five weeks after Air India selected the software-as-a-service provider for real-time pricing of airfare. The carrier has selected AirGain to dynamically adjust prices with real-time, accurate, and high-quality airfare data to compete globally with leading airlines, according to RateGain’s exchange filing.

• Bharti Airtel Ltd. has paid Rs 8,312.5 crore to the telecom department toward dues for spectrum acquired in the recently concluded 5G auctions. The carrier has paid four years of 2022 spectrum dues upfront, it said in an exchange filing. The payment, along with moratorium on spectrum dues and adjusted gross revenue related payments for four years, will free up future cash flows for 5G rollout.

• The Union Cabinet has approved the expansion of Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore to Rs 5 lakh crore. The additional funds will be made available exclusively for the travel, tourism and hospitality sectors, the minister said.

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

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