Morning Outlook 23rd November, 2022

NIFTY:

The NIFTY opened at 18179.15 with a gap up of 46 points. Prices have initially moved down, filled the gap, and soon found support. The index bounced up after recording its intraday low at 18137.70. Prices have seen a sharp rally and breaks above 18200. The index then started a consolidation process, and prices have locked themselves in a narrow range. This narrow range eventually broke on the upside and prices recorded its intraday high at 18261.85. The index finally closed at 18244.20 near its day highs with a gain of 84.25 points or 0.46% up. All the sectoral indices have closed higher today REALTY which ended with a loss of over 1%. METAL and IT led the bulls today by closing nearly with a 1% gain. Traders should stay short with a stop at 18280 and a target at 17960. However, if the index starts rising before reaching the target, we should also look for a buying opportunity. Look to buy above 18320 with a stop below 18130 and a target around 18560. In case of a gap up above 18320, apply the first 15-minute rule. This means wait till 09:30 AM and then look to buy above the high recorded in those first 15 minutes of trading. In this case, keep a stop of 80 points and a target of 240 points.

BANK NIFTY:

The BANK NIFTY opened at 42467.40 with a gap up of 107 points. The index initially moved lower, filled the gap, and fall further to record its intraday low at 42347.5. Prices then moved higher and started a consolidation process. The index broke on the upside and rallied sharply to record its intraday high at 42508.75. Prices have finally closed at 42475 with a gain of 110 points. PSU BANKS have a gain outperformed today and closed higher by 1.66%. PVT BANKS have also moved up today and closed with a gain of just 0.30%. Within the index, in terms of points, INDUSIND BANK contributed the highest on the upside while HDFC BANK contributed the lowest. Traders should look for a buying opportunity above 42700 or a shorting opportunity below 42000. Keep a stop of 300 points and a target of 1200 points. In case of a gap apply the first 5 minutes rule. The short-term trend is up. Today the index again moved very volatile and narrowly. A narrow trading range remained intact for the past eight trading days. This narrow range suggests a sharp move is about to come. Take trade in the direction of a breakout.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices broke three-day losing streak and ended higher with Nifty around 18,250.At Close, the Sensex was up 274.12 points or 0.45% at 61,418.96, and the Nifty was up 84.20 points or 0.46% at 18,244.20. About 1587 shares have advanced, 1772 shares declined, and 140 shares are unchanged.

• Nykaa CFO Arvind Agarwal resigns, Agrawal will leave the company and step down from his role on November 25, Nykaa informed stock exchanges

• Easy Trip Planners share price hit a 52-week high to jump more than 13 percent in the morning session on November 22, zooming over 31 percent in the last two days as the stock traded ex-split and ex-bonus.

• Reliance Industries Ltd’s plans to demerge its financial services business and list the entity could create the fifth-largest financial services firm in India in terms of net worth, according to a report by Macquarie Capital Securities.

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

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