Morning Outlook 1st July, 2022

NIFTY:

Nifty opened at 15774.50 with a minor gap down of 25 points. The index initially moved up towards 15900 and faces resistance around this level. Prices have recorded its intraday high at 15890 and then turned down by more than 150 points. The index has seen a pullback of almost 100 points in the afternoon but prices again face strong resistance. Another decline of more than 100 points came in the last hour of trading and prices have recorded its intraday low at 15728.85. The index finally closed at 15780.25 with a loss of just 18.85 points or 0.12% down.

As of now, the short-term trend is sideways and the NIFTY has locked itself in a narrow trading range for the past four trading days. A breakout may give us a directional move here. We should look for a buying opportunity above 15950 or sell short below 15650.In case of a gap beyond these levels, wait for prices to come there. Keep a stop of 110 points and a target of 240 points.

BANK NIFTY:

Bank Nifty opened at 33273.55 with a big gap down of 419 points. The index initially continued moving lower but soon finds support around 33200 and bounced up after recording its intraday low at 33185.25. A rally faces resistance very quickly and the index begins a process of consolidation. Prices have recorded its intraday high at 33422.80 and finally closed at 33239.25 wit h a loss of 453 points. PVT and PSU BANKS both have performed almost the same today, saw a down move, and ended with a loss of 1.12% & 0.90% respectively. Within the index, in terms of points, PNB contributed the highest on the upside while AXIS BANK contributed the lowest.

The short-term trend is sideways. The Index again opened wit h a gap down which is sustained today. However, prices did not add on the downside and moved in a narrow range throughout the day.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Murugappa Group on Thursday reported a 23 per cent rise in net profit at Rs 5,520 crore for the financial year 2021-22, compared to Rs 4,481 crore during the same period in 2020-21. The group’s turnover increased by 31 per cent to Rs 54,722 crore, as against Rs 41,706 crore in 2020-21.

• State-owned Indian Oil Corporation (IOC) will invest over Rs 740 crore to raise the capacity of the nation’s oldest oil refinery at Digboi in Assam. In a stock exchange filing, IOC said its board has approved raising of Digboi refinery capacity from 0.65 million tonnes per annum to 1 million tonnes along with associated facilities at an estimated cost of Rs 740.20 crore. “The project is expected to be commissioned by October 2025,” it said. “The capacity expansion would improve the profitability of the Digboi refinery.”

• Signalling that on the back of adequate capital buffers and improving asset quality levels, the Indian banking system is well-positioned to support economic growth, the Reserve Bank of India in its Financial Stability Report for June said that in March 2022, the gross net performing assets’ ratio fell to a six-year low of 5.9%. It also noted that the bank credit grew in double-digits after a long hiatus.

• The country’s largest carmaker Maruti Suzuki will continue to strengthen its presence across segments, with a special focus om SUVs, Managing Director Hisashi Takeuchi said. The new Brezza – priced between Rs 7.99-13.96 lakh (ex-showroom) – will take on the likes of Hyundai Venue and Kia Sonet in the entry-level SUV segment. Maruti Suzuki has invested Rs 760 crore, along with supplier partners, to develop the all new Brezza.

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

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