Morning Outlook 1st November, 2022

NIFTY:

The NIFTY opened at 17910.20 with a gap-up of 124 points. The index continued moving higher after recording its intraday low at 17899.90 in its initial trades. The rally continued for the whole day and prices kept on rising at a mild pace. Minor dip sin between were bought quickly and the index crossed above the 18000 hurdles. The index recorded its intraday high at 18022.80 and finally closed at 18012.20 near its daily highs with a gain of 225.40 points or 1.27% up. All the sectoral indices have closed higher today. AUTO, IT, OIL GAS led the bulls today by closing more than 1% higher. METAL and MEDIA underperformed today as they gained the least. The NIFTY has been moving in a tight and narrow range. This narrow range has seen a breakout and the index ended above 18000 resistance. A follow-through on the upside may confirm this breakout. The short-term trend is up and we should look for buying only as long as prices are moving above immediate support around 17800.

BANK NIFTY:

The BANK NIFTY opened at 41265.70 with a gap up of 231 points. The index recorded its intraday high at 41353.60 in its initial trades and started moving on the downside. Prices found support quickly and then went into a process of consolidation after recording their intraday low at 41106.10. The index kept on moving within these two levels for the rest of the day and finally closed at 41314.90 with a gain of 280 points. PSU and PVT BANKS both indices have performed almost the same today, saw an upside move, and closed higher by 0.64% & 0.37% respectively. Within the index, in terms of points, HDFCBANK contributed the highest on the upside while BANDHAN BANK contributed the lowest. For today, we have suggested trade in the direction of a breakout: buy above 41500 or sell short below 40900 with a stop of 300 points and a target of 800 points. Prices did not cross either level this trade did not execute. We are recommending the same trade for tomorrow. Look for a buying opportunity on a breakout above 41500 or a shorting opportunity on a breakdown below 40800. In case of a gap beyond these levels follow the first 15 minutes rule. Keep a stop of 300 points and a target of 800 points. It was a narrow-range day today in the BANK Index where prices have moved inside a narrow range of just 247points. The short-term trends are up and will be up as far as prices are trading above 39500 support. The only visible resistance is at around 41840 which is also the lifetime high. Moreover, the index is moving very narrowly for the last five trading days. These narrow movements suggest a sharp move is about to come.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher for the third consecutive day on October 31 with Nifty reclaiming 18,000 mark.At Close, the Sensex was up 786.74 points or 1.31% at 60,746.59, and the Nifty was up 225.40 points or 1.27% at 18,012.20. About 1788 shares have advanced, 1657 shares declined, and 164 shares are unchanged.

• Union Minister Rajeev Chandrasekhar on Monday announced that an Electronics Manufacturing Cluster will be developed in Ranjangaon, Maharashtra, at a cost of Rs 500 crore.The Electronics Manufacturing Cluster (EMC) is targeted to attract an investment of over Rs 2,000 crore, with a potential to generate thousands of jobs in the coming years.

• Shares of Intellect Design Arena cracked in early trade on October 31 hitting a 52 week low after a weak September quarter saw the firm’s margin contract 10 percent.

• For the first time since the implementation of the monetary policy framework in 2016, the Reserve Bank will submit a report to the government on its failure to keep the retail inflation rate below 6% for three consecutive quarters beginning January 2022

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

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