Morning Outlook 23rd May, 2022

NIFTY:

Nifty opened at 16043.80 with a big gap up of 234 points. The index recorded its intraday low at 16003.85, finds strong support there, and handsomely bounced up. The index rallied almost 200 points and then saw a minor correction. That correction finds support soon and prices again turned up. The rally took the index to its intraday high at 16283.05.Prices have finally closed at 16266.15 near its day’s high wit h a gain of 456.75 points or 2.89% up. All the sectoral indices have seen an upside move today and closed higher. MEDIA gained the most ending at 4.47% higher while IT gained the least ending at 1.54% higher. Metal also performed well today and closed 4.20% higher. We have mentioned a support level around 15700 – 15750 in the NIF1Y.The index respected this support and is now heading towards resistance 16500. That gives us a wide trading range of almost 800 points. The volatility is very high as the volatility index ‘INDIA VIX’ is moving around 23 levels. For normal volatility, it needs to come around 15 – 18 levels. The summary here is we should avoid trading the index and wait for an adequate setup to emerge

BANK NIFTY:

Bank Nifty opened 33765.15 with a big gap up of 406 points. The index recorded its intraday low at 33658.05 and moved further on the upside. Prices then consolidate and broke on the downside. The decline finds support quickly and prices again moved up to record its intraday high at 34358.05. The index finally closed at 34311.55 with a gain of 952 points. PSU and PVT BANKS both have performed almost the same today, saw a sharp intraday rally, and closed higher by 3.02% & 2.73% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside followed by the ICICIBANK.

A big gap up opening and then a sharp intraday rally helped BANK NIFTY to recover all the losses that came yesterday. The index ended the week on a positive note. On the weekly timeframe, the index breaks five weeks of a lower closing streak. The short-term trend is sideways. Moreover, a trading range is now visible inside the support at 33000 and resistance at 35000.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indraprastha Gas (IGL) plans to invest Rs 8,000 crore over the next five years to expand its city gas network even as it targets a more than 40% increase in sales volumes over the same period, its top executive has said. IGL currently operates in Delhi and adjoining cities and plans to expand its operations to a few districts in Uttar Pradesh, Rajasthan and Haryana. Of the planned Rs 8,000 crore, about Rs 6,000 crore would go towards setting up city gas infra in seven new license areas and the balance into enhancing facilities in the four existing areas

• Coal production by Coal India (CIL) has grown slower than the captive mines, awarded over the last six years. During 2020-22, production from the captive mines jumped by 38.5 per cent while CIL saw a tepid growth of 3.4 per cent, according to government data.

• The government is eyeing the second edition of production-linked incentive (PLI) scheme for textiles and has begun consultations with the industry. Industry wants inclusion of knitted fabrics in the scheme, besides manmade fibre and technical textiles and a lower investment threshold of Rs 25 crore instead Rs 100 crore now.

• Mahindra & Mahindra (M&M) Ltd on Friday said that its new sports utility vehicle codenamed Z101 will be known as ‘Scorpio-N’ and will be launched on June 27. The current Scorpio which has evolved over the last two decades as an iconic and a cult brand will continue as the ‘Scorpio Classic’, the company said in a release.

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

BOARD MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL