Morning Outlook 21st October, 2022

NIFTY:

The NIFTY opened at 17423.10 with a gap down of 89 points. The index initially moved sideways and then went higher after recording its intraday low at 17421. Prices came close to 17500 and then again started consolidating almost the whole afternoon. This sideways movement was eventually broken on the upside. Prices have seen another rally towards the end of today’s trading session and recorded its intraday high at 17584.15. The index finally closed at 17563.95 with a gain of 51.70 points or 0.30% up. OIL GAS, IT, and METAL outperformed today and closed higher by more than 1%.BANK led the bears today and closed lower by 0.68%. AUTO, MEDIA ended almost on a flat note. The short-term trend is up as we have seen a breakout from the 17400 resistance and prices have been moving above this level for the past two days. This level is now acting as a support level. Stay long and look for a buying opportunity as far as prices are moving above 17400 support. Resistance is visible around the 17800 – 18000 zone.

 BANK NIFTY:

The BANK NIFTY opened at 40149.50 with a big gap down of 230 points. The index moved further on the downside after recording its intraday high at 40208.35. Prices have found intraday support around 39900 and saw a sharp upside move in the last hour of trading after recording its intraday low at 39848.85. The index finally closed at 40116 with a loss of 263 points. PVT BANKS underperformed today and closed lower by 1% whereas PSU BANKS outperformed today and closed higher by 1.88% Within the index, in terms of points, SBIN contributed the highest on the upside while INDUSINDBK contributed the lowest. BANK NIFTY breaks its four days of a higher closing streak and ended on a negative note today. Prices have seen a sharp decline in the morning, consolidated in the afternoon, and then rallied towards the end of today’s trading session. The short-term trend is up and it will be up as far as prices are trading above 39500 support. Immediate resistance is now visible around 40650 which is also the recent swing high. A breakout above the resistance level is a buying opportunity. We should now wait for prices to dip towards 39500 support or rally above 40650. As far as prices are moving within these levels, we should prefer trading intraday only.

 

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended on positive note in the volatile session on October 20.At Close, the Sensex was up 95.71 points or 0.16% at 59,202.90, and the Nifty was up 51.70 points or 0.30% at 17,564.00. About 1597 shares have advanced, 1721 shares declined, and 129 shares are unchanged.

• Delhivery’s stock dropped 14 percent to Rs 479 apiece on the BSE on October 20 after the logistics company said it expects moderate growth of shipment volumes for the rest of FY23 due to high inflation, average user spends, and total active shoppers remaining flat or declining during the ongoing festive season.

• The stock of the market intelligence provider listed at Rs 83 apiece on the BSE Ltd., a premium of 3.75% to its IPO price of Rs 80 apiece. On the National Stock Exchange of India Ltd., the stock debuted at Rs 84.50, a 5.63% premium.

• Hinduja Renewables Energy Pvt., the green energy arm of Hinduja Group, plans to commission around 5 gigawatts of renewable energy capacity with special focus on solar-wind hybrid and battery storage by 2026.

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

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