Morning Outlook 18th October, 2022

NIFTY:

The NIFTY opened at 17144.80 with a gap down of 41 points. The index initially moved down, found support quickly around 17100, and started moving on the upside. Prices recorded its intraday low at 17098.55 in the morning and rallied near 17300 comfortably. The index went sideways after that which eventually broke on the upside. Prices have again rallied, recorded its intraday high at 17328.55, and finally closed at 17311.80 near its daily highs with a gain of 126.10 points or 0.73% up. BANK and financial outperformed today and closed higher by more than 1%. METAL, MEDIA, and REALTY underperformed today and closed lower. FMCG moved sideways today and ended without much of a change. The short-term trend is sideways but the bias is now changing in the favor of bulls. A breakout and a dose above 17400 may be able to confirm this. Tomorrow, we should look to buy on a breakout above 17400. In case of a gap above 17400, buy above the first 15 minutes of high. Keep a stop of 80 points and a target of 240 points.

 BANK NIFTY:

The BANK NIFTY opened at 39295.60 with a gap down of just 77 points. The index initially went lower but quickly turned around after recording its intraday low at 39146.70. Prices then rallied, breaks above 39500, and consolidated throughout the afternoon. The index recorded its intraday high at 39146.70 and finally closed at 39959.45 with a gain of 587 points. PSU BANKS have outperformed today, saw a sharp intraday rally, and closed higher by 3.47%. PVT BANKS have also moved up today and ended with a gain of 1.42%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside followed by SBIN. A trading range within the 37500 – 39500 zones has broken decisively on the upside and given us a pattern target of around 41500. The short-term trend also changes to the upside which was sideways before.

TECHNICAL PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks closed higher, paring opening losses, aided by gains in banking, utilities and power stocks. The Sensex added about 491 points (0.85%) to close at 58,410.98. The Nifty 50 added about 131 points (0.76%) to end at 17,317.

• Shares of Tata Elxsi Ltd. fell the most in nearly eight months after its net profit in the July-September quarter missed analyst estimates. The Bengaluru-based design and technology services provider reported a net profit of Rs 174.7 crore, down 6% from a year ago

• Indian economy faces external headwinds but is a bright spot amidst global slowdown.

• As interest rates spike across the board, the Indian banking industry is staring at a new problem on their books: basis risk.

• Multiplex operator PVR on October 17 reported a consolidated net loss of Rs 71.23 crore for the quarter ended September 2022. This was nearly half of the loss of Rs 153.13 crore in the same quarter last year.

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

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