Morning Outlook 20th September, 2022

NIFTY:

The NIFTY opened at 17540.65 without much of a gap. However, prices initially went down sharply but rebounded quickly after recording its intraday low at 17429.70. The index kept on rising and broke above 17600 very comfortably in the morning. Prices have then begun moving sideways and locked itself inside a tight, narrow range. The narrow trading range lasted till the end of today’s trading session, prices recorded its intraday high at 17667.20 and finally closed at 17622.25 with a gain of 91.40 points or 0.52% up. MEDIA and FMCG outperformed today and closed with a gain of over 1% followed by AUTO which ended nearly 1% higher. METAL and REALTY underperformed today and closed lower by 0.45 % & 0.95 % respectively. The NIFTY is finding support around 17500. A zone inside 17400 – 17500 is acting as a strong support zone. Below this, the next support is visible around 17200. The short-term trend remained sideways. Volatility is rising and we have been expecting it also due to the FED Policy announcement this week. The INOIA VIX, a benchmark index for volatility, moved up today and now moving around 20 suggesting volatility is moderately high. As of now, we should avoid trading the index for the time being or prefer taking trades on an intraday basis only. We will get a trading opportunity soon.

BANK NIFTY:

The BANK NIFTY opened at 40685.60 with a gap down of 140 points. The index remained weak for the first 15 minutes of trading, recorded its intraday low at 40509.90, and then bounced up. Prices have recovered and come into positive territory. The index again moved down after recording its intraday high at 41184.25 and saw some recovery in the last 30 minutes of trading. Prices have finally closed at 40966.05 with a gain of 141points. PSU BANKS have outperformed today, saw a sharp intraday rally, and closed higher by 2.03%. PVT BANKS have moved very choppily today and closed with a gain of just 0.06%. Within the index, in terms of points, SBIN contributed the highest on the upside while ICICI BANK contributed the lowest. It was a trend day today in the index on the upside where prices have recorded its intraday low near the opening tick and intraday high near the closing tick. We have a support of around 40000 and resistance of around 42000 in the BANK Index. However, the index is finding short-term support around 40500 from the last few trading days. Since we have a big news event coming this week which may raise volatility so we should now avoid trading the index. We should now wait for prices to break either support or resistance level.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• On Monday, Indian benchmark indices broke 3-day losing streak and ended higher with Nifty above 17,600. At Close, the Sensex was up 300.44 points or 0.51% at 59,141.23, and the Nifty was up 91.50 points or 0.52% at 17,622.30. About 1665 shares have advanced, 1852 shares declined, and 127 shares are unchanged.

• Adani Group aims to double its cement capacity over the next five years, tapping into the vast potential for cement demand in the country, Chairman Gautam Adani said. We anticipate going from the current 70 million tons capacity to 140 million tons in the next five years,” Adani said.

• Crompton Greaves has approved the sale of a six percent stake in its subsidiary Butterfly Gandhimathi Appliances via an offer for sale (OFS), a regulatory filing said on September 19. The approval is for the sale of around 10.72 lakh equity shares in Butterfly Gandhimathi, at a face value of Rs 10 each.

• The government has started the process to sell two Air India subsidiaries, nearly a year after the national flag carrier was sold to Tata Sons Pvt. Ltd. The Department of Investment and Public Asset Management, or DIPAM, has initiated investor meetings and roadshows to gauge investor interest in Air India Airport Services Ltd. and Air India Engineering Services Ltd, an official said.

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

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