Morning Outlook 1st August, 2022

NIFTY:

Today, the NIFTY opened at 17079.50 with a big gap up of 150 points the index continued moving higher and crossed above 17100 but soon faces resistance and drifted downwards. Prices have seen a sharp decline and almost reached 17000. The index then takes a reversal from there after recording its intraday low at 17018.15 and rallied sharply. The index consolidated in a tight narrow range for the whole afternoon and again rallied in the last 30 minutes to record its intraday high at 17172.80. Prices have finally closed at 17158.25 with a gain of 228.65 points or 1.35% up. All the sectoral indices have seen an upside move today and closed higher. METAL outperformed today and ended with a gain of nearly 4% followed by OIL GAS which ended with a gain of over 2%. The NIFTY broke its resistance around 17000 decisively and rallied further. This breakout level should now act as a support level for the index. It means a close below 17000 suggests not taking long trades. Since we do not have an adequate setup to trade so we will avoid trading the index for the time being. Fresh trade should emerge either on a dip or if the index again consolidated and formed a narrow trading range. Both the trend and momentums have aligned on the upside suggests higher levels are ahead.

BANK NIFTY:

Today, the BANK NIFTY opened at 37717.30 with big gap up of 381points. The index did not sustain at higher levels and started moving lower after recording its intraday high at 37754.65. Prices have filled the gap and went into negative territory but soon finds support and bounced up after recording its intraday low at 37221.15. The index remains in positive territory afterward and finally dosed at 37486 with a gain of 150 points. PVT BANKS have outperformed today and dosed withagainof0.58%. PSU BANKS have underperformed today and ended with loss of 1.17%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while SBIN contributed the lowest The short-term trend is up. Immediate support is now visible around 36800. Buying should be done as far as the index is moving above this support. As of now, we do not have an inadequate setup to trade so we will avoid trading the index. Fresh trade should emerge either after a dip or if the index consolidates for a few trading days and formed a narrow trading range.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Private sector lender Yes Bank Ltd. said that it will raise Rs 8,898.47 crore (approximately $1.11 billion) from private equity firms Carlyle Group and Advent International. The bank’s board met on Friday to assess the investment proposals and approved them. To facilitate this investment, the bank has also increased its authorised share capital from Rs 6,200 crore to Rs 8,200 crore.

• Auctions for 5G spectrum continued for the fifth day on Saturday, after fetching bids worth Rs 1,49,855 crore from players such as Reliance Jio and Bharti Airtel so far. Continued interest for radiowaves has led to stretching of the auction to Saturday, and according to sources, 24th round of bidding is underway. About 71 per cent of the total spectrum put on the block has been provisionally sold so far, Telecom Minister Ashwini Vaishnaw had said on Friday, terming it a ‘good response.

• Biocon Ltd. is expecting growth in the second half of 2022 even as it missed forecasts in the first quarter. “We have had robust growth of 23% compared to last year. We expect more product approvals, newer capacities to be qualified and commissioned which will lead to increased supply to customers, and increase in market share of already launched products such as the biosimilar Glargine,” Siddharth Mittal, managing director and chief executive officer at Biocon.

• Auto component major Sundram Fasteners (SFL) posted a consolidated net profit of Rs 138.03 crore during Q1FY23, up 14.5 per cent from Rs 120.51 crore reported during the same period last year.

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

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