Morning Outlook 21st September, 2022

NIFTY:

NIFTY opened at 17770.40 with a big gap up of 148 points. Prices continued moving higher after recording its intraday low at 17744.40 and went above 17900 comfortably. Minor dips in between found support quickly and prices kept on moving higher. The index found resistance around 17900 after recording its intraday high at 17919.30. The index formed a trading range there eventually broke on the downside. A sharp decline came in the last hour of trading and the index finally closed at 17816.25 with a gain of 194 points or 1.10% up. All the sectoral indices have rallied today and closed higher. PHARMA outperformed today and ended with a gain of 3.08%. BANK, METAL, FINANCIAL, AUTO, and REALTY ended with a gain of over 1%. The index is consolidating inside a range with support around 17500 – 18000 for almost one and half months if we ignore a few false breakouts. This is a contraction and a successful breakout from this consolidation may give us a directional move. The INDIA VIX, a benchmark index for volatility, moved up today and now moving around 19 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 41304.15 with a big gap up of 338 points. The index continued its bullish momentum and moved high after recording its intraday low at 41207.30. A minor correction came that found support quickly and prices kept on rising to record its intraday high at 41677.65. The index consolidate there that eventually broke on the downside and prices have seen a sharp decline in the last hour of trading to finally close at 41414.30 with a gain of 448 points. PVT BANKS have outperformed today, saw a sharp intraday rally, and closed higher by 1.67%. PSU BANKS have also moved higher but ended with a gain of just 0.48%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside followed by HDFC BANK contributed the lowest. We have a support of around 40000 and resistance of around 42000 in the BANK Index. Prices have been moving within these levels for the last two weeks. We will get a trading opportunity once this range breaks one way or the other. The short-term trend is sideways. 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

• Indian benchmark indices extended the gains in the second consecutive session on September 20 with Nifty closing around 17,800. At Close, the Sensex was up 578.51 points or 0.98% at 59,719.74, and the Nifty was up 194 points or 1.10% at 17,816.30. About 2038 shares have advanced, 1334 shares declined, and 123 shares are unchanged.
• India’s economy is well poised to grow at a sustained rate of 7% “as we go into 2023” and for the rest of the decade, chief economic advisor V Anantha Nageswaran said on Tuesday. His projections are lower than the estimate of 8-8.5% GDP growth in the current financial year provided in the government’s Economic Survey in January 2022.
• U.S. private equity giant KKR & Co Inc and India’s Hero Group have agreed to invest $450 million in the motorcycle maker’s renewable energy arm, the companies said on Tuesday, as the Indian firm looks to expand its renewable energy capacity.
• Gold edged down to near the lowest level in more than two years as the dollar rallied, with investors weighing the likely size of the Federal Reserve’s looming interest-rate hike. The greenback rose Tuesday alongside inflation-adjusted Treasury yields, putting some pressure on bullion. The metal plunged below the $1,700 mark last week following hot inflation data that spurred some bets on a 100 basis point rate hike by the Fed.

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

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