Morning Outlook 22nd October 2021

NIFTY:

The Nifty opened at 18382.7 with a gap up of 116 points. Prices recorded its intraday high a few ticks above the opening price at 18384.20 and started moving downwards. Prices have seen a sharp decline of more than 300 points and recorded its intraday low at 18048 and then started a process of correction. Prices have seen upward correction in the last hour of trading, recovered more than half of the loss and finally closed at 18178.10. Bank and Financial have led the bulls and closed higher by more than 1%. IT underperformed most and closed lower by 2.53%. Metal and Realty also moved down.

A gap up opening did not sustain in the Nifty and the index continued the correction. The correction breached the short term support of 18200. However it received support at the 18000 mark. Prices reversed sharply and recovered half the losses and ended above 18200. 18000 will act as a strong support while 18500 will be a hurdle.  The last three days were very wide and these wide range bars suggest narrow and choppy days are ahead.

BANK NIFTY:

Bank Nifty opened at 39676.55 with a gap up of 113 points. The index traded very volatile and sideways, recorded its intraday low at 39428.10 and find strong intraday resistance around 39700. A breakout came in the last hour of trading, prices have seen a sharp intraday rally and closed with big gains. PSU Banks have continued its outperformance and ended with a gain of 2.73%. Private Banks have also seen an upside move and closed higher by 1.27%. Within the index, Kotak Bank contributed highest while Indusind Bank the lowest.

Bank Nifty outperformed when compared to Nifty closed more than 1% higher.

TECHNICAL PICKS

COMPANY	CMP	B/S	RATIONALE
MANAPURAM	199.75	BUY	The stock has given a breakout from a narrow trading range. The stock can be bought at CMP with a stop at 196  and for the target 206
IBULHSGFIN	249.2	BUY	The stock has given a breakout from a narrow trading range. The stock can be bought at CMP with a stop at 244  and for the target 258

DERIVATIVE PICKS

STOCK OPTION	Strike Price	Buy/Sell	CMP	Initiation	Stop Loss	Target	Remarks
INDIGO	2040 CE	BUY	81	CMP	70	100	OI increase

Long Buildup						Short Buildup
Stocks	Price	Price%	OI %	OI		Stocks	Price	Price%	OI %	OI
CROMPTON.21.10 Oct	466.3	2.37	15.51	1696200		GAIL.21.10 Oct	151.05	-0.82	18.52	48202200
KOTAKBANK.21.10 Oct	2152	6.33	13.45	11388800		ADANIPORTS.21.10 Oct	780.95	-2.17	16.93	101681250
JKCEMENT.21.10 Oct	3242.55	1.45	12.85	113750		POLYCAB.21.10 Oct	2217.3	-3.83	16.8	1247100
SRTRANSFIN.21.10 Oct	1501.95	4.14	12.11	4162000		BERGEPAINT.21.10 Oct	750	-6.24	16.47	4987400
POWERGRID.21.10 Oct	195.95	0.41	11.89	33523238		VOLTAS.21.10 Oct	1196.85	-4.5	15.6	2490000
Short Covering						Long Unwinding
Stocks	Price	Price%	OI%	OI		Stocks	Price	Price %	OI %	OI
M&MFIN.21.10 Oct	193	4.16	-3.98	18704000		TATAPOWER.21.10 Oct	226.1	-2.29	-7.25	75606750
INDIGO.21.10 Oct	2052	1.63	-3.93	3297000		INDUSINDBK.21.10 Oct	1197.95	-0.68	-6.53	12943800
COALINDIA.21.10 Oct	182.6	0.74	-3.69	54087600		MPHASIS.21.10 Oct	3400	-2.12	-5.21	1648725
ABBOTINDIA.21.10 Oct	21007.9	1.28	-3.61	33350		DALBHARAT.21.10 Oct	1970.1	-0.4	-4.71	693500
SUNTV.21.10 Oct	555.8	2.24	-3.12	11637000		L&TFH.21.10 Oct	85.8	-6.28	-4.11	66376712

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

UPCOMING ECONOMIC DATA

NEWS UPDATES

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