NIFTY:
Nifty came under pressure due to global market as it moving near 17500 which is 38 percent correction of recent up move. The index declined almost 4% last week led by weakness in the technology stock . In the US, the Nasdaq Index moved to its lowest levels since June 2021. Midcap and small cap indices also came under pressure as they lost more than 4% each during the week.
We believe volatility will remain higher in the coming week on account of upcoming Union Budget. On the data front, the Put base at 17500 likely to act as an immediate support. It is likely to move towards its previous support 17850 in the coming week. On the higher side, the Call writing at 18000 strike may remain crucial hurdle in the coming sessions
In the coming session, the index is likely to open on a subdued note tracking weak global cues. The formation of lower high-low signifies corrective bias. Hence intraday pullback towards 17775-17802 should be used to create short position for target of 17400.
BANK NIFTY:
For a major part of last week, the Bank Nifty had relatively outperformed the Nifty. However, it failed to give any positive close during the week as cash based selling continued. Private as well as PSU banks continued to witness selling pressure and even HDFC Bank failed to surprise the Street post its quarterly numbers
Numbers are lined up for banks, which should trigger some volatility during the expiry week. The volatility index remained elevated ahead of the Union Budget whereas last week the rupee depreciated and cash based selling by FIIs continued. Rollovers are likely to pick up pace during the week, which should trigger stock specific actions
Buying the decline strategy should work well in coming earnings season as we expect Bank Nifty index to hold strong support of 37500 levels being the confluence of the following technical observations
(a)23.6 % retracement of the current up move (34018 – 38851)
(b)the recent breakout area is placed around 37500 levels In the coming session.
TECHNICAL PICKS
DERIVATIVE PICKS
TOP DELIVERY PERCENTAGE
| Stocks | Price | %Chg | Total Qty | Delivery | Del % | % Change | ||||
| Sectors | Price | Change % | Quantity | |||||||
| Pfizer Ltd. | 4747.6 | 0 | 21993 | 0 | 86 | Nifty 50 | 17617.15 | -0.79 | 71760 | |
| Tata Consultancy Serv Lt | 3840 | 0.35 | 3111295 | 0 | 80.34 | Nifty Bank | 37574.3 | -0.73 | 71760 | |
| Mahanagar Gas Limited | 852.8 | -2.04 | 534721 | 0 | 74.17 | Nifty it | 36054.55 | -1.66 | 71760 | |
| Petronet Lng Limited | 212.85 | -1.5 | 1344692 | 0 | 74.09 | Nifty Auto | 11561.75 | -0.19 | 71760 | |
| Hdfc Ltd. | 2592.95 | 0.92 | 3952726 | 0 | 72.64 | Nifty Metal | 5719.55 | -1.91 | 71760 | |
| Escorts India Ltd. | 1868.6 | 0.48 | 549498 | 0 | 70.35 | India Vix | 18.89 | 6.18 | 71760 | |
| Max Financial Services l | 933.25 | -4 | 1505907 | 0 | 70.26 | Nifty Realty | 491.2 | -2.36 | 71760 | |
| Honeywell Auto India Ltd | 43863.75 | -2.95 | 5723 | 0 | 69.89 | Nifty Fmcg | 36812.9 | 0.36 | 71760 | |
| Hdfc Bank Ltd. | 1521.6 | 0.83 | 5768339 | 0 | 69.03 | Nifty Pharma | 13243.05 | -1.57 | 71760 | |
| Reliance Industries Ltd | 2477.85 | 0.02 | 6153150 | 0 | 68.58 | Nifty Financial Services | 18047.05 | -0.5 | 71760 | |
UPCOMING ECONOMIC DATA
NEWS UPDATES
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ICICI Bank on Saturday reported a 25 per cent jump in net profit in the October–December quarter (Q3FY22), aided by lower provisions and a robust increase in net interest income (NII). The lender’s net profit in the reporting quarter stood at Rs 6,194 crore, its highest ever quarterly profit, beating Street estimates. Analysts had estimated a net profit of Rs 5,800 crore. Its net interest income rose 23 per cent to Rs 12,236 crore in Q3FY22 as compared to Rs 9,912 crore in the corresponding period of last financial year.
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YES Bank’s net profit rose by 77 per cent at Rs 266 crore for the third quarter ended December 2021 (Q3FY22) predominantly on reduction in provisions. The net profit was Rs 151 crore in Q3FY21. Sequentially, net profit rose by 18.2 per cent to Rs 225 crore in the second quarter ended September 2021 (Q2FY22).
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Vodafone Idea Ltd.’s quarterly loss widened owing to an increase in its marketing and finance costs, while roaming and access charges, too, rose. Net loss stood at Rs 7,230.9 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 6,998-crore loss estimate of analysts tracked by Bloomberg.
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Reliance Industries Ltd.’s quarterly profit surged beating estimates, aided by an increase in benchmark gross refining margins and product cracks, and the performance of its retail segment. The Mukesh Ambani-led conglomerate’s profit rose 41.6% year-on-year to Rs 18,549 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 15,046.7-crore consensus estimate of analysts tracked by Bloomberg. Revenue (minus excise duty) rose 57% over a year earlier to Rs 1,85,047 crore—higher than the estimated Rs 1,75,300 crore.
Source: Economic Times, Indian Express ,Business Today, Livemint, Business Standard, Bloomberg Quint.
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