Morning Outlook 1st June, 2022

NIFTY:

Nifty opened at 16578.45 with a gap down of 83 points. The index moved further on the downside, finds support quickly, and then turned up sharply. An intraday rally takes place for about two hours that lead prices into positive territory and then the index started consolidating. That consolidation eventually broke on the downside. Prices have recorded its intraday high at 16690.75 and fell in the last 30 minutes of trading. The index recorded its intraday low at 16521.90 and finally closed at 16584.55 with a loss of 76.85 points or 0.46% down. REALTY outperformed today by ending 2% higher followed by the MEDIA and META L which ended wit h over 1% gain. BANK and FINANC IAL have led the bears today and ended with a loss of nearly 1%. We have seen a trading range breakout and then the index rallied for three days. The breakout level should now act as a support level which comes around 6350 – 16400 zones. A dip inside this zone is a buying opportunity.

BANK NIFTY:

Bank Nifty opened at 35615.30 with a gap down of 217 points. The index initially moved higher and filled the gap within the first two hour of trading. Prices then consolidated there and eventually broke down after recording its intraday high at 35881.95. The index has seen a sharp intraday decline in the last thirty minutes of trading, recorded its intraday low at 35288.95, and finally closed at 35362.85 wit h a loss of 470 points.

PSU and PVT BANKS both have performed almost the same today, saw an intraday decline, and closed lower by 1.03% & 0.77% respectively. Within the index, in terms of points, KOTAK BANK contributed the highest on the downside followed by the HDFC BANK.

The short-term trend is still up. The index has seen a breakout from a trading range and then rallied. The breakout points should now act as a support level. A retest of that level may give us a buying opportunity. Tomorrow, look to buy on a dip at or below 34500 wit h a stop of 300 points and a target of 800 points.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Fiscal deficit for 2021-22 worked out to be 6.71 per cent of the gross domestic product (GDP), lower than 6.9 per cent projected by the Finance Ministry in the revised Budget Estimates, according to government data released on Tuesday. Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) said that the fiscal deficit in the absolute terms was be Rs 15.86 trillion (provisional).

• Coffee Day Enterprises Ltd has reported a consolidated net profit of Rs 58.67 crore for the fourth quarter ended March 2022. The company had posted a net loss of Rs 272.09 crore in the January-March quarter a year ago, Coffee Day Enterprises Ltd (CDEL) said in a BSE filing. CDEL’s revenue from operation rose 2.81 per cent to Rs 169.81 crore against Rs 165.16 crore in the year-ago period.

• ITC Infotech is eyeing revenues of $500 million over the next five years from DxP Services – a unit being created from the acquisition of a portion of US software and services company, PTC’s, product lifecycle management (PLM) business. Last month, ITC Infotech announced that it would be acquiring a part of PTC’s product lifecycle management (PLM) implementation services business and create a new business unit, DxP Services, combining professional services experts from both companies.

• Euro zone inflation rose to yet another record high in May, challenging the European Central Bank view that gradual interest rate increases from July will be enough to tame stubbornly high price growth.

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

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