Morning-Outlook-Feature-Image

MORNING-OUTLOOK-20MAY

NIFTY:

Nifty opened at 15917.40 with a big gap down of 323 points. The index initially consolidated after recording its intraday high at 15984.75 in its initial trades. The consolidation sooner breaks on the downside and prices have seen a sharp decline. On the downside, the index added almost 150 points to record its intraday low at 15775.20.Prices have seen a minor recovery in the last 30 minutes of trading and finally closed at 15809.40 with a loss of 430.90 points or 2.65% down. All the sectoral indices have seen a decline today and closed lower led by the IT and METAL which ended 5.74% & 4.08% lower respectively. FMCG ended with a loss of 0.65% and the rest of the sectoral indices have registered a loss of more than 2%.

We should now wait and see if this support level is holding or not. If it holds then we will be looking for buying and if it breaks then we will be looking for a shorting opportunity. The volatility is very high as the volatility index ‘INDIA VIX’ has risen today to 25 levels. For normal volatility, it needs to come around 15 – 18 levels. The summary here is we should avoid trading the index.

BANK NIFTY:

Bank Nifty opened 33461 with a gap down of 737 points. The index recorded its intraday high at 33633.95 and moved further on the downside. Prices then saw a minor rally that fizzled out quickly and the index again moved down to record its intraday low at 33180.60. Prices have seen some recovery in the last 30 minutes of trading and finally closed at 33359 with a loss of 839 points. PSU and PVT BANKS both have performed almost the same today, saw a sharp intraday decline, and closed lower by 2.73% & 2.72% respectively. Within the index, in terms of points, ICIC IBANK contributed the highest on the downside followed by the HDFC BANK.

We took a long trade of around 34000 and for today, we have suggested staying long with a stop at 33950 and a target at 34800. Unfortunately for us, the index opened with a gap down below our stop loss and we exited.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE+
TATAELEXI 8261 BUY The stock is on the verge of giving the breakout on the intraday as well as the daily chart. The stock can be buy  with a stop loss of 8200 and for the target of 8400.
TATASTEEL 1122 SELL The  immediate trend of the script is bearish. There is a negative  cross over of moving averages  as well as of the indicators therefore  it can be sell below 1120 with a stop loss of 1135 and target of 1100.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
HDFCBANK 1280 PE BUY 18 CMP 12 30 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
TVSMOTOR.May 26 682.05 0.04 5.51 7982800 MANAPPURAM.May 26 94.75 -9.63 18.16 29223000
IOC.May 26 118 0.04 0.84 48178000 LTTS.May 26 3495.05 -7.31 8.05 974000
POWERGRID.May 26 228.9 0.13 0.14 55196550 COFORGE.May 26 3654.9 -7.13 9.33 707800
CUB.May 26 125.2 0.28 3.98 10937800 LUPIN.May 26 635.05 -6.95 7.58 9340650
AMBUJACEM.May 26 364.1 0.64 1.99 47158500 MPHASIS.May 26 2462.2 -6.76 3.04 1668800
                                                                        Short Covering                                                                       Long Unwinding
HAL.May 26 1698 0.8 -0.46 2178350 FSL.May 26 108.15 -6.16 -1.04 11830000
ABBOTINDIA.May 26 18088.65 1.38 -0.09 27550 GRANULES.May 26 246.9 -6.12 -0.72 10282700
METROPOLIS.May 26 1730.5 1.38 -1.4 520000 GNFC.May 26 605.5 -5.09 -2.01 3988400
ITC.May 26 269.8 3.1 -7.99 80256000 IBULHSGFIN.May 26 115.55 -5.09 -0.89 34499900
BALRAMCHIN.May 26 407.45 -4.9 -2.36 6684800

Top Delivery Percentage

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
City Union Bank Ltd. 124.9 0.04 1125410 0 81.37 Nifty50 15809.4 -2.65 75183
Max Financial Services 708.1 -3.71 524489 0 71.08 Niftybank 33315.65 -2.48 75183
Ntpc Limited 148 -0.34 11699635 0 69.49 Nifty it 28352.15 -5.74 75183
Ipca Laboratories Ltd. 964.8 -2.39 105202 0 67.9 India Vix 24.56 10.13 75186
Sbi Cards And Payment Se 724.1 -2.19 1306860 0 66.24 Nifty Fmcg 37740.45 -0.65 75186
Honeywell Auto India Ltd 32004.45 -1.86 6809 0 65.71 Nifty Pharma 12600.85 -2.18 75186
Nestleind 16094.25 -1.53 70501 0 65.5 Nifty Realty 384.85 -2.61 75186
Dr. Reddys Lab Ltd 3929.45 0.61 1825786 0 64.96 Nifty Auto 10618 -2.67 75186
Power Grid Corporation o 228.3 0.18 11314098 0 63.93 Nifty Metal 5476.25 -4.08 75186
Icici Bank Ltd. 690.3 -2.41 16660900 0 63.24 Nifty Financial Services 15397.9 -2.33 75189

UPCOMING ECONOMIC DATA

   Domestic                                                                                                                                                  International
INR: FX Reserves, USD on 20th May, 2022

INR: Deposit  and Bank Loan Growth on 20th May, 2022

•USD:  New Home Sales (Apr) on 24th May 2022

NEWS UPDATES

  • Indonesia will lift its palm oil export ban from Monday, following improvements in the domestic cooking oil supply situation, President Joko Widodo said on Thursday. The world’s top palm oil exporter has since April 28 halted shipments of crude palm oil (CPO) and some derivative products to try to tame soaring prices of domestic cooking oil.
  • Maruti Suzuki India (MSI) on Thursday said its new manufacturing facility in Haryana, the company’s third in the state, would reach peak production capacity of 10 lakh units per annum in the next eight years entailing a total investment of Rs 18,000 crore. The new facility, which would come at a 800-acre site at IMT Kharkhoda in Sonipat district, will entail total investment of Rs 11,000 crore in the first phase with a production capacity of 2.5 lakh units per annum.
  • ONGC is weighing the options of placing more bids for Western companies’ stakes in multiple Russian oil and gas fields even as its first bid for Shell’s 50% stake in Salym fields in Siberia has not been accepted, people familiar with the matter said. The company is evaluating the option to bid for Shell’s 27.5% interest in the Sakhalin-II oil and gas project and ExxonMobil’s 30% stake in the Sakhalin-I project, looking to acquire energy assets cheap as western oil companies exit Russia in the wake of the Ukraine invasion.
  • Gautam Adani’s company, Adani Enterprises Limited, has forayed into healthcare services through its wholly-owned subsidiary Adani Health Ventures Limited. The subsidiary includes setting up, running, administering medical and diagnostic facilities, health aids, health tech based facilities, research centers and basic healthcare facilities.
Source: Economic Times,  Indian Express  ,Business Today, Livemint, Business Standard, Bloomberg Quint

BOARD MEETINGS

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
ADFFOODS Audited Results;Final Dividend 20-May-22 INDIGRID Audited Results;General 20-May-22
ADVENZYMES Audited Results;Final Dividend 20-May-22 IRFC Audited Results;Final Dividend;General 20-May-22
AMARAJABAT Final Dividend;Quarterly Results 20-May-22 JKTYRE Audited Results;Dividend 20-May-22
BAJAJHIND Audited Results 20-May-22 LKPSEC Issue Of Warrants;General;Pref. Issue 20-May-22
BALAJITELE Audited Results;Final Dividend;General 20-May-22 MAPMYINDIA Audited Results;General 20-May-22
COCHINSHIP Audited Results;Final Dividend 20-May-22 METROBRAND Audited Results;Interim Dividend 20-May-22
GATI Audited Results 20-May-22 MINDTECK Audited Results;Dividend;General 20-May-22
GREENPOWER Audited Results 20-May-22 NTPC Audited Results;Final Dividend 20-May-22
GUFICBIO Audited Results;Final Dividend 20-May-22 NUVOCO Audited Results 20-May-22
GUJTHEM Audited Results;Final Dividend 20-May-22 PARAS Audited Results 20-May-22
GULPOLY Audited Results;Final Dividend;General 20-May-22 PAYTM Audited Results 20-May-22
HEIDELBERG Audited Results;Dividend 20-May-22 PFIZER Audited Results;Dividend 20-May-22
HESTERBIO Audited Results;Dividend 20-May-22 SAINTGOBAIN Audited Results;Dividend 20-May-22
IBULHSGFIN Audited Results;General 20-May-22 SOBHA Audited Results;Dividend 20-May-22
IDFC Audited Results 20-May-22 SURAJ Audited Results;Final Dividend 20-May-22
IGPL Audited Results;Dividend 20-May-22 THERMAX Audited Results;Dividend 20-May-22
INDIGOPNTS Audited Results;Final Dividend 20-May-22 ZYDUSLIFE Results;Buy Back;Final Dividend 20-May-22

CORPORATE ACTION

Company Name Ex-Date Purpose Company Name Ex-Date Purpose
KKCL 20-May-22 Interim Dividend – Rs. – 5.00 CYIENT 23-May-22 Final Dividend – Rs. – 14.00
LATIMMETAL 20-May-22 Stock  Split From Rs.10/- to Rs.1/- DOLATALGO 23-May-22 Interim Dividend – Rs. – 0.2500
TRENT 20-May-22 Final Dividend – Rs. – 1.10 RISHYRN 23-May-22 E.G.M.
ANGELONE 23-May-22 Final Dividend – Rs. – 2.2500 EVEXIA 24-May-22 Stock  Split From Rs.2/- to Rs.1/-
CAPPL 23-May-22 Interim Dividend – Rs. – 2.00 KENNAMET 24-May-22 Interim Dividend – Rs. – 24.00
COFORGE 23-May-22 Interim Dividend – Rs. – 13.00 BIRET 25-May-22 Income Distribution RITES

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