Morning Outlook 18th July, 2022

NIFTY:

NIFTY opened at 16010.80 With a gap up of 72 points. The index initially followed its early morning momentum but failed to keep it on and moved down. Prices have seen a sharp dip and filled the gap. The index then went into a process of consolidation that eventually broke on the upside. Prices recorded its intraday low at 15927.30. A sharp rally came in the last one and half hours of trading which brought the index to its intraday high at 16066.95. Prices finally closed at 16049.20 with a gain of 110.55 points or 0.69% up. AUTO outperformed today and ended with a gain of 2.03% followed by FMCG which ended 1.47% up. METAL, IT underperformed today and ended with a loss. BANK and PHARMA ended almost on a flat note.

On a weekly timeframe, the index ended a week with a loss. Also, it has formed an Inside bar, which means this week’s price action was inside the previous weeks suggesting next week may be wide. A trading range is visible inside 15850 – 16300 on the daily chart. We should wait for one or two days and then plan our trade. Till then avoid trading the index.

BANK NIFTY:

Bank Nifty opened at 34734.45 with a gap up of 71points. The index initially moved lower after recording its intraday high at 34899.95, filled the gap, and then started a process of consolidation. Prices have recorded its intraday low at 34463.90 and broke on the upside. A rally brought prices near to its opening tick and the index finally closed at 34704.85 with a gain of just 41points. PSU BANKS has seen an underperformance today and closed lower by 0.43%. PVT BANKS have outperformed today and closed higher by just 0.07%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while AX IS BANK contributed the lowest.

However, if prices started increasing on Monday, we should take a long trade on a breakout above 35200 with a stop of 300 points and a target of 800 points. In case of a gap up, apply the first 15 minute rule.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Bharat Heavy Electricals Ltd (BHEL) on Thursday said it has successfully commissioned 100-MW floating Solar photovoltaic plant at NTPC Ramagundam in Telangana. The plant is installed across the natural raw water reservoir, saving valuable land resources, and also conserves water by reducing evaporation, a company statement said.

• Ajmera Realty & Infra India Ltd on Thursday reported an over three-fold jump in its sales bookings to Rs 400 crore for the quarter ended June on better demand. Its sales bookings stood at Rs 111 crore in the year-ago period, the company said in a statement. The carpet area sold by the company stood at 1,57,438 square feet in April-June period of this fiscal as against 61,663 square feet in the year-ago period.

• Tata Power on Thursday issued a clarification saying no officials of Tata Power are involved in the alleged bribery case involving Power Grid Corporation of India. Tata Power spokesperson in a tweet said, ““Tata Power clarifies that no officials of Tata Power are involved in the alleged bribery case involving Power Grid Corporation of India, being investigated by CBI. Some media reports have wrongly mentioned Tata Power’s name in the alleged case.”

• TCS will kick start corporate earnings season this week, and if one were to go by what analysts say the IT major may not disappoint the Street, with a nearly 15 per cent jump in revenues and a 7-11 per cent year-on-year rise in June quarter profit. The demand commentary could be strong, they said, even as margin may take a hit on wage hikes.

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

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