Morning Outlook 19th October, 2022

NIFTY:

The NIFTY opened at 17438.75 with a big gap up of 127 points. The index initially moved higher after recording its intraday low at 17434.05 in its early trades. The index crossed above 17500 and then went higher to record its intraday high at 17527.80. Prices faced resistance there and moved down which eventually turned into a consolidation. The index moved sideways for the second half and traded in a tight, narrow range. Prices finally closed at 17486.95 near its opening tick with a gain of 175.15 points or 1.01% up. All the sectoral indices have performed well today and closed higher. MEDIA outperformed today by closing more than 2% higher. PHARMA underperformed today by closing just 0.20% higher. We have suggested, “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. The index opened well above 17400 so we waited for the first 15-minute high, recorded at 17493. Our long trade is executed when prices break above this level. The suggested stop and target did not breach during the day so this trade remained intact. Stay long with a stop at 17400 and a target at 17740.

 BANK NIFTY:

The BANK NIFTY opened at 40252.05 with a big gap-up of 293 points. The index initially went lower but quickly found support and turned around after recording its intraday low at 40139.85. Prices saw a minor correction and then resumes their up move to record their intraday high at 40435.35. The index finally closed at 40303.95 with a gain of 344 points. PSU BANKS have outperformed today, saw a sharp intraday rally, and closed higher by 3.97%. PVT BANKS have also moved up today and ended with a gain of 0.67%. Within the index, in terms of points, SBIN contributed the highest on the upside while HDFC BANK contributed the lowest. We were long in the index form 39600; today, we have suggested staying long with a stop at 39600 and a target at 40400. Prices have moved higher and met our target. So, this trade dosed today with a gain of 800 points. The short-term trend is up as we saw a breakout from yesterday’s trading range. We should look for buying only as far as prices are moving above 39500 support.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended on positive note for the third straight session on October 18 with Nifty finishing near to 17,500. At Close, the Sensex was up 549.62 points or 0.94% at 58,960.60, and the Nifty was up 175.20 points or 1.01% at 17,487. About 2007 shares have advanced, 1332 shares declined, and 119 shares are unchanged.
• Shares of Electronics Mart India continued to see buying interest for the second straight session on October 18 after Nippon India Mutual Fund bought an additional 0.6 percent equity stake in the company through open market transactions.
• Shares of TVS Motor Co. Ltd. hit a 52-week high after UBS Securities India Pvt. hiked target price in anticipation of the Chennai-based automaker emerging as a leader in the electric two-wheeler space.
• Boeing Co. is offering 737 Max jets once slated for Chinese customers to Air India Ltd. as the planemaker tries to offload some of the roughly 140 aircraft it’s currently not allowed to deliver.

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

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