Morning Outlook 18th May, 2022

NIFTY:

Nifty opened at 15912.60 with a gap up of 70 points. The index recorded its intraday low at 15900.80 a few ticks below the opening price and moved higher. Prices have seen a strong intraday rally today throughout the day. Minor dips in between were quickly bought into and prices kept on moving higher. The index recorded its intraday high at 16284.25 and finally closed at 16259.30 near its day highs with a gain of 417 points or 2.63% up. All the sectoral indices have participated on the upside today and closed with gains. METAL outshine wit h a gain of 6.86%.Except for PHARMA, all the sectoral indices have ended with a gain of more than 2%.

Yesterday, we have mentioned a DOJI pattern on the daily chart which shows indecision in the minds of the market participants. That confusion resolved on the upside. Support is visible around the 15700 – 1750 zone while resistance may emerge around 16500. The short-term trend is sideways now which was down before. We should look for buying only as far as the index is moving above 16000 levels. The volatility index INDIA VIX has seen a sharp dip today indicates volatility is now cooling off.

BANK NIFTY:

Bank Nifty opened at 33796.20 with a gap up of 153 points. The index first moved down, but find support quickly and bounced up. Prices have recorded its intraday low at 33680.60 and rallied very sharply. Minor dips in between were quickly bought into and the index kept on moving higher to record its intraday high at 34366.05. Prices have finally closed at 34346.75 with a gain of 703 points. PVT and PSU BANKS both have performed almost the same today, saw a sharp intraday rally, and closed higher by 2.14% & 2.02% respectively. Within the index, in terms of points, ICIC IBANK contributed the highest on the upside followed by SBIN.

The index opened higher and breaks above 34000 during the day. We took a long trade there. Prices did not meet t he suggested stop or target today so this trade remained intact. Stay long with a stop at 33950 and a target of 34800

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Bharti Airtel on Tuesday reported 164% increase in consolidated net profit at Rs 2,008 crore for the quarter ending March 31, 2022, It reported consolidated net profit of Rs 760 crore in the year-ago period. Consolidated revenue from operations rose 22% to Rs 31,500 crore in Q4FY22 as against Rs 25,747 crore in Q4FY21. On Tuesday, the company’s scrip on BSE closed nearly 2% higher at Rs 706. The company’s Board has recommended a dividend of Rs 3 per fully paid-up equity share of face value Rs 5 each.

• Bajaj Electricals on Tuesday reported a 28.73 per cent decline in consolidated net profit at Rs 38.67 crore for the fourth quarter ended March 2022. The company had posted a net profit of Rs 54.26 crore for March quarter of the previous fiscal year, Bajaj Electricals said in a regulatory filing. However, total revenue from operations was up 6.02 per cent at Rs 1,334.32 crore during the quarter under review as against Rs 1,258.47 crore in the year-ago period.

• Maruti Suzuki India (MSI) on Tuesday said its shareholders have approved the appointment of Hisashi Takeuchi as Managing Director and CEO. In a regulatory filing, the auto major said 99.89 per cent of votes polled through a postal ballot were in favour of the appointment of Takeuchi as MD and CEO.

• Indian air conditioner manufacturers are expecting record sales this year as a heatwave scorches most of the country, an industry body told Reuters, but delayed arrivals of components from COVID-hit China may cause shortages of premium products. With temperatures this month breaching 49 degrees Celsius in New Delhi, sales are set to reach 8.5-9 million units this year, up from 2019’s previous record of 6.5 million

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

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