Morning Outlook 21st June, 2022

NIFTY:

Nifty opened at 15334.50 with a gap up of 41 points. The index initially went down, filled the gap within a few minutes, and fell further to record its intraday low at 15191.10. Prices have bounced up from there then consolidated and then again moved up above 15300. The index recorded its intraday high at 15382.50 and  then saw a down move. The NIFTY again moved up in the last thirty minutes of trading and came close to its daily highs. The index finally closed at 15350.15 with a gain of56.65 points or 0.37% up. OIL GAS and META L led the bears today and ended with a loss of more than 3% followed by MEDIA which ended 2.59% lower. FMCG outperformed today and ended with gains of nearly 2%.

We should take a trade in the direction of a breakout. The idea is to wait till 09:30 AM and then look to buy above 15500 or sell short below 15150. However, if prices already crossed these levels after the first 15 minutes, then wait for it to come back. Keep a stop of 110 points and a target of 220 points from your entry price.

BANK NIFTY:

Bank Nifty opened at 32873.40 with a gap up of just 16 points. The index started moving down from the open and saw a sharp dip of more than 400 points within the first 30 minutes. Prices then moved up and down and continued these random swings for the whole day. The intraday high was recorded at 32926.10 while the intraday low was recorded at 32426.40 and finally, the index closed at 32699.45 wit h a loss of 158 points. PVT BANKS outperformed today and ended wit h a loss of 0.69% while PSU BANKS have underperformed today and ended wit h a big loss of 2.49%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while BANOHAN BANK contributed the lowest.

The short-term trend is down. We have seen a sharp decline two days ago and prices have been moving choppy since then. So, we should take a breakout trade in the same direction tomorrow.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Kamdhenu Ltd on Monday said its paints business has been demerged into a separate entity following an order of the Chandigarh bench of the National Company Law Tribunal (NCLT). Post demerger, Kamdhenu Ltd will continue to focus on steel business, while Kamdhenu Ventures Limited will expand the paints business. It is now looking to complete the listing process of newly-formed company in the July-September quarter, Kamdhenu Ltd said in a statement.
• Industry body ISSDA on Monday termed the government’s move to impose duty on steel products as “knee jerk” action which came as a shock to domestic steel industry. On May 21, the government announced waiving of customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry. Also, the duty on exports of iron ore was hiked by up to 50 per cent and on a few steel intermediaries to 15 per cent.
• Vodafone Idea’s Board is scheduled to meet on June 22, to consider and approve a proposal for raising funds to the tune of Rs 500 crore. The fundraising will be through the issuance of equity shares or convertible warrants on a preferential basis to one or more entities belonging to Vodafone Group (one of the promoters of the company).
• Vedanta Ltd has invited Expression of Interest (EoI) from interested parties to sell its Sterlite Copper unit in Tamil Nadu’s Thoothukudi. The last day to submit the expression of interest is July 4. Vedanta has invited the bids in conjunction with Axis Capital. It was in May 2018 that 13 people were killed and around 102 left injured in a police firing at Thoothukudi, during a protest against the expansion of the plant. Following this, the smelter and refining complex was shut down.

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

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