Morning Outlook 21st November, 2022

                             

NIFTY:

The NIFTY opened at 18382.95 with a gap up of just 39 points. Prices have initially moved down after recording its intraday high at 19394.60 in its initial trades. A sharp decline brought prices below 18250 and then the index started a consolidation process. Prices recorded its intraday low at 18209.80 and then bounced up. A sharp rally came in the late hour of trading and the NIFTY finally closed at 18307.65 with a loss of 36.25 points or 0.20% down. All the sectoral indices have closed lower except REALLY which ended with minor gains. AUTO led the bears today by closing 1.18% lower followed by OIL GAS which ended with a loss of 0.72%. Traders should look for a buying opportunity on a breakout above 18500 or sell short on a breakdown below 18200. Keep a stop of 80 points and a target of 240 points from your entry price. In case of a gap apply the first 15-minute rule.

BANK NIFTY:

The BANK NIFTY opened at 42545.75 with a gap up of 119 points. The index initially consolidated for a brief time and broke on the downside after recording its intraday high at 42590.75. Prices have seen a sharp decline and then found intraday support around 42250. The index recorded its intraday low at 42223.70, saw some recovery in the late hour of trading, and finally closed at 42422.65 without much of a change when compared to yesterday’s closing price. PSU BANKS have outperformed today and closed higher by 1.53%. PVT BANKS have underperformed today and ended lower by 0.40%. Within the index, in terms of points, SBIN contributed the highest on the upside while HDFC BANK contributed the lowest. Traders should look for a buying opportunity above 42700 or a shorting opportunity below 42000. Keep a stop of 300 points and a target of 1200 points. In case of a gap apply the first 15 minutes rule. The short-term trend is up. Today the index moved very volatile and ended almost on a flat note. A narrow trading range remained intact for the past seven trading days. This narrow range suggests a sharp move is about to come. Take trade in the direction of a breakout.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian stock benchmarks ended lower on Friday, snapping a four-week gaining streak dragged by declines in auto, energy, and oil and gas stocks. The Sensex fell 0.11% to close at 61,679.71 on Friday, while the Nifty 50 closed 0.20% lower at 18,307.65.

• The Reserve Bank of India forecasts India’s second-quarter economic growth to be between 6.1% and 6.3%. “If this is realised, India is on course for a growth rate of about 7% in FY23,” the central bank said in its November monthly bulletin.

• The government has cut export duty on steel products and iron ore with effect from Saturday, six months after the imposition of the levy. Exports of specified pig iron and steel products as well as iron ore pellets will attract ‘nil’ export duty, according to a finance ministry notification issued late night on Friday.

• Yatra Online Inc said its Indian subsidiary Yatra Online Ltd has received capital markets regulator Sebi’s clearance to float an initial public offering (IPO). The proposed IPO comprises a fresh issue of equity shares worth up to Rs 750 crore by Yatra India and an offer for sale (OFS) of up to 9,328,358 equity shares, according to the draft red herring prospectus (DRHP).

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

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