Morning Outlook 25th August, 2022

NIFTY:

The NIFTY opened at 17525.45 with a gap down of 52 points. The index started moving upwards from its opening tick but failed to fill the gap and turned down. A sharp decline brought prices near 17550, found intraday support there, and bounced up after recording its intraday low at 17499.25. This time prices filled the gap but found resistance there. The index recorded its intraday high at 17623.65 turned down again but recovered towards the end of today’s trading session and finally closed at 17604.95 near its daily highs with a gain of 27.45 points or 0.16% up. REALTY, MEDIA outperformed today and closed with a gain of over 1.50 % followed by BANK and METAL which ended with a gain of over half percent. PHARMA, IT, and AUTO underperformed today and closed with minor loss. Prices may likely continue moving within these levels for the next few weeks. Yesterday, we closed our long position with gains so we should now wait for another setup to emerge. As of now, we should avoid trading the index. Fresh trade should emerge either on a dip towards 17400 or on a rally towards 17900 – 18000.

BANK NIFTY:

The BANK NIFTY opened at 38552.70 with a big gap down of 300 points. The index started moving upwards after recording its intraday low at the opening tick and filling the gap quickly. Prices again turned down but bounced up quickly. Another sharp decline came in the afternoon but prices again recovered and rallied for the rest of the day. The index recorded its intraday high at 39120.80 and finally closed at 39087.25 with a gain of 235 points. PVT BANKS have outperformed today and closed with a gain of 1.59%. PVT BANKS have also moved up today and ended with a gain of 0.49%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside while SBIN contributed the lowest. It was again a trend day today in the Bank Index on the upside where prices have recorded their intraday low near the opening tick and intraday high near the closing tick. Another gap-down opening did not sustain and prices have rallied throughout the day with minor dips in between. The short-term trend is sideways. We now have a support level of around 38000 and a resistance level of around 40000. This range has yet to be confirmed but it is most likely that prices may move within these boundaries for a few weeks.

 

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks advanced for the second day after swinging between gains and losses for most of the session, powered by banking, industrial and realty stocks. The Sensex gained over 50 points (0.09%) to reach 59,085.43. The 30-stock gauge traded in a narrow range between 58,760.09 and 59,170.87. The Nifty 50 rose 0.16% to 17,604.95.

• Agribusiness company Godrej Agrovet has signed a memorandum of understanding (MoU) with Assam, Manipur and Tripura governments for the development and promotion of oil palm cultivation, The Hindu BusinessLine has reported.

• The initial public offering (IPO) of DreamFolks Services, a dominant player in the airport lounge aggregation industry in India, got a good response from retail investors on August 24, the first day of bidding. Retail investors had bid 7.93 times the portion set aside for them. Bids had came in for 1.85 crore equity shares against an offer size of 94.83 lakh shares. The IPO had been subscribed 1.96 times, data available with exchanges show.

• Retail Detailz India, an operational creditor to Future Enterprises Ltd., has filed a second insolvency petition against the debt-ridden firm, claiming a default of Rs 4.02 crore. “The company has received e-filing confirmation from NCLT with respect to the filing of an application by Operational Creditor Retail Detailz India Pvt. under Section 9 of the IBC for an alleged default amount of Rs 4.02 crore.

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

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