Morning Outlook 21st July, 2022

NIFTY:

Nifty opened at16562.80 With a big gap up of 222 points. The index initially moved lower for the first five minutes of trading and then bounced up. Prices have rallied sharply towards 16600 but failed to cross that level and turned down in the afternoon after recording its intraday high at 16588 near its opening price. Prices have continued moving lower till the end of today’s trading session and recorded its intraday low at 16490.95. Finally, the index closed at 16520.85 with a gain of 180.30 points or 1.10% up.IT outperformed today and closed higher by nearly 3% followed by the FMCG, METAL, and OIL GAS which ended with over 1% gains. AUTO, MEDIA, and REALTY underperformed today and ended with a minor loss.

Prices have initially moved up but lost its momentum in the second half. However, our stop loss at 16485 remained untouched so we are still long. Stay long with a stop at 16450 and a target at 16780.

BANK NIFTY:

Bank Nifty opened at  36061.30 With a big gap up of 353 points. The index initially moved down and then quickly bounced up. Prices have rallied and then kept on finding resistance around the 36100 – 36200 zone. The index recorded its intraday high at 36182.70 and then turned down to record its intraday low at 35876.55. Prices have finally closed at 35890.85 with a gain of 182 points. PVT and PSU BANKS both have performed almost the same today, saw an upside move, and closed higher by 0.38% & 0.21% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while KOTAK BANK contributed the lowest.

The short-term trend is up as the index has been closing higher for the last four trading days. We have seen an up move of more than 1500 points. It is very likely that the index may trade choppy and narrow for at least one or two days.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• IT major Wipro Ltd reported a 21% fall in June-quarter profit on Wednesday as higher employee-related costs pushed up the information technology services firm’s overall expenses. June-quarter consolidated net profit came in at Rs 2,564 crore, compared with Rs 3,243 crore a year ago. Revenue from operations rose nearly 18% to Rs 21,529 crore as against Rs 18,048 crore in Q1FY22.

• Cigarettes-to-hotel conglomerate ITC expects its FMCG products will have a market of Rs 500,000 crore by 2030, said Sanjiv Puri, the group’s chairman and managing director, on Wednesday. The company aims to take its brands overseas, Puri told shareholders at the company’s annual general meeting in Kolkata. “In recent years, we have established distribution arrangements abroad enabling appreciable progress of exports of ITC’s ‘Proudly Indian’ brands to over 60 countries. Over time, such exports will make a substantial contribution to the growth of your company’s value-added FMCG portfolio.

• Rajarshi Gupta has taken over as Managing Director of ONGC Videsh Ltd (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corporation (ONGC). He replaces Alok Gupta who superannuated last month. “Rajarshi Gupta has more than 33 years of wide-ranging experience in supervisory, managerial and strategic planning capacities in domestic and international operations of ONGC and ONGC Videsh,” the company said in a statement adding he took over on July 19.

• Dairy products maker Hatsun Agro Products has crossed the Rs 2,000 crore sales mark during the quarter ending June 30, 2022 for the first time, the company said on Wednesday.

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

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