Morning Outlook 24th June, 2022

NIFTY:

Nifty opened at 15451.55 with a gap up of just 38 points. The index continued its early morning momentum and saw a rally of more than 150 points. The index recorded its intraday high at 15628.45 and then started moving downwards. The decline erases all the gains that came during the day and prices have fallen further to record its intraday low at 15367.50. Prices have again moved higher and almost reach the morning highs. The index finally closed at 15556.65 near its intraday high with a gain of 143.35 points or 0.93% up. All the sectoral indices have closed higher today except the OIL GAS which ended 0.43% lower. AUTO led the way today on the higher side and ended wit h a gain of 4.39%. The short-term trend is now sideways. The support is now visible around 15200.Strong resistance may emerge inside 15800 – 16000 zones while a short-term resistance is now visible around 15700 Volatility is moderately high as the INOIA VIX is moving above 20. The most likely scenario is a consolidation within the mentioned support and resistance levels. We should step aside and avoid trading the index.

BANK NIFTY:

Bank Nifty opened at 32927.40 with a gap up of 134 points. Prices have recorded its intraday high at 33431.5 and then went into a narrow range. That range eventually broke on the downside and prices tell to erase all the gains, fill the gap also, and recorded its intraday low at 32652.15. The index again rose towards the end of today’s trading session and finally closed at 33171.05 with a gain of 378 points. PVT and PSU BANKS both have performed almost the same today, saw an upside move, and ended with a gain of 0.88% & 0.45% respectively. Within the index, in terms of points, ICIC IBANK contributed the highest on the upside while BANDHAN BANK contributed the lowest. The short-term trend is sideways as the index is in a process of correction. A recent swing low around 32300 should act as a support while strong resistance is visible around 34500.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Diversified Indian conglomerate ITC Limited’s sales through the e-commerce channel in the last financial year saw a threefold rise over FY 2019-20 levels, taking the channel salience to 7 per cent. In its recently released annual report, the company revealed that it collaborated with leading e-commerce platforms on all aspects of operations, including category development, marketing, and supply chain and customer acquisition. This was augmented by the development of exclusive and relevant pack assortments, driving digital-first brands, and enabling platform discoverability through jointly curated campaigns.

• The settlement of disputes between Spandana Sphoorty Financial Ltd’s (SSFL) board and Padmaja Reddy, its erstwhile managing director, has paved the way for the micro finance institution to announce audited results for FY22 before June 30, 2022. It had delayed the declaration of results pending an agreement between the board and Reddy.

• Macrotech Developers Ltd on Thursday announced its entry in the Bengaluru market and has formed a joint venture to develop its first housing project with an estimated sales bookings value of Rs 1,200 crore. It will acquire 100 per cent equity of G Corp Homes to make foray into the Bengaluru market.

• Vodafone Idea (Vi) has opted for a four year moratorium on payment of Rs 8837 crore in AGR dues in addition to one exercised last year. Similarly, the telecom company has the option to convert interest on deferred amount into additional equity to government. The government is set to own 33 per cent stake in Vi following an earlier decision to convert interest with net present value of interest worth Rs 16,000 crore into equity.

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

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