Morning Outlook 22nd April, 2022

NIFTY:

Nifty opened at 17234.60 with a gap up of 98 points. The index first consolidated and recorded its intraday low at 17215.50 within the first 30 minutes of trading. Prices have seen a breakout from the morning range and started moving higher. The rally lasted for almost the whole day and prices have recorded its intraday high at 17414.70. In the last hour of trading the index consolidated around its day highs and finally closed at 17392.60 a few ticks below 17400 with a gain of 256.05 points or 1.49% up. All the sectoral indices have performed well today and closed higher except the MEDIA which ended with a loss of 0.12%.AUTO continued to be an outperformer followed by IT and Financial.

The short-term trend is now sideways which was down before. Prices have found support around 17000 and bounced up. A sharp rally brought the index near its resistance level of 17500. It was a trend day today on the upside where prices have recorded its intraday low near the opening t ick and intraday high near the closing t ick. We do not have an adequate trading setup so we need to wait for one Till then avoid trading the index and watch the markets from outside. We may get a trading opportunity in the next week.

BANK NIFTY:

Bank Nifty opened at 36513. O with a gap up of 162 points. The index first slides lower, almost filled the gap and recorded its intraday low at 36395.70. Prices then turned up and kept on moving higher to record its intraday high at 36913.35. The index finally closed at 36911.25 near its day highs with a gain of 560 points. PVT and PSU BANKS both indices have performed well today, saw a sharp intraday rally and closed higher by 1.51% & 1.12% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside followed by KOTAK BANK.

A support is visible around 36000 and prices have bounced up from that point. The support of the previous trading range should now act as a resistance which is around 37300.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• The Diversified entity ITC on Thursday said it will acquire 10.07 per cent stake in Blupin Technologies Pvt Ltd, the company behind direct-to-consumer(D2C) brand, Mylo for up to Rs 39.34 crore. The investment will provide the company an early mover advantage in the evolving content-to-community-to-commerce space and will provide an expanded presence in the D2C space, ITC said in a regulatory filing.

• The country’s largest carmaker Maruti Suzuki India on Thursday launched a new version of its multi-purpose vehicle XL6 as it gears up to bring a slew of new products this fiscal and take the challenges of prevailing uncertainties head-on. The new XL6 is powered by a 1.5-litre petrol engine with a peak power of 75.8 kW. It is available in manual and automatic transmission options, priced between Rs 11.29 lakh and Rs 14.55 lakh (ex-showroom).

• Three of India’s most industrialised states plan to import 10.5 million tonnes of coal in coming months as officials scramble to arrest widespread power cuts, a move that could push global coal prices to new highs. The scale of the purchases and the decision to go back on a plan to cut coal imports underscore the severity of the India’s fuel crisis. Utilities’ coal inventories are at the lowest pre-summer levels in at least nine years and electricity demand is seen rising at the fastes pace in at least 38 years.

• The government may take a fresh look at BPCL privatisation, including revising the terms of sale, an official said. “We need to go back to the drawing board on BPCL. There are issues in terms of consortium formation, geopolitical situation and energy transition aspects,” an official said.

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

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