Morning Outlook 19th August, 2022

NIFTY:

The NIFTY opened at 17898.65 with a gap down of 46 points. The index continued moving downwards but found support around 17850 and bounced up sharply. Prices quickly erased all the losses and went above 17950 but found strong resistance there and turned down. A decline again found support around 17850 and prices bounced up after recording their intraday low at 17852.05. The index rallied sharply towards the end of today’s trading session, recorded its intraday high at 17968.45, and finally closed at 17956.50 near its daily highs with a gain of 12.25 points or 0.07% up. REALTY outperformed today and ended with a gain of 1.55% followed by METAL which gained 0.92%. OIL GAS and IT underperformed today and ended with a loss of 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 39324.40 with a gap down of 92 points. In its initial trade, the index recorded its intraday low at 39291.15 and started moving higher. A sharp rally brought prices above 39500 and then the index turned down towards 39300. Prices have again moved up, went above 39600 and recorded their intraday high at 39703.70. The index finally closed at 39670.80 again 254 points. PVT BANKS have outperformed today and ended with a gain of 0.64%. PSU BANKS have underperformed today and ended with a loss of 0.23%. Within the index, in terms of points, KOTAK BANK contributed the highest on the upside while AXIS BANK contributed the lowest. It was a volatile day today in the index where prices have seen moves in both directions in the first half while rallied sharply in the second half and closed which was a gain of a half percent. The last two days of DOJI Pattern resolve on the upside today and the index has ended near its daily highs. The short-term trend is up and prices are now heading towards a psychological resistance at the 40000 mark. Support is visible at around 38000. We should now wait for a dip or some kind of consolidation for fresh trading opportunities

TECHNICAL PICKS

DERIVATIVE PICKS

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks edged higher with Nifty extending its winning streak for eighth day, longest in 21 months, aided by gains in banking, capital goods, realty, telecom, power and utilities stocks. The Sensex and Nifty swung between gains and losses for the bulk of the session before closing near day’s high.

• Tata Motors wins order of 921 electric buses from Bengaluru Metropolitan Transport Corporation. Tata Motors will supply, operate and maintain 12-metre electric buses for a period of 12 years, as per the contract.

• Shares of Power Mech Projects Ltd. rose to a record high after the firm received orders worth more than Rs 6,100 crore from the Adani Group. The Hyderabad-based construction engineering company will install 15 flue gas desulphurisation units at Adani’s coal-based units located at Mundra, Tiroda, Kawai and Udupi, according to an exchange filing.

• India’s largest aggregator of airport lounge services will soon be boarding the flight to Dalal Street. Dreamfolks Services’ initial public offering is expected to open to subscription on August 24, and close on August 26. The anchor portion for the issue will open for bidders a day prior – on August 23.

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

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