Morning Outlook 25th July, 2022

NIFTY:

Nifty opened at 16661.25 With a gap up of 56 points. The index initially moved up but soon started drifting downwards, filling the gap and erasing all the gains that came today. Prices have found support around 16600, recorded its intraday low at 16610.90, and then bounced up sharply. A minor dip came in the afternoon but soon prices again turned up. The index recorded its intraday high at 16752.25 and again moved down in the last hour of trading. Prices have finally closed at 16719.45 with a gain of 114.20 points or 0.69% up. BANK and FINANCIAL have outperformed today, led the bulls, and closed higher by nearly 1.50%.IT underperformed today and closed lower by 0.62%. METAL and OIL GAS closed with minor changes.

We were expecting and also mentioned in last Friday’s letter that this week should be a wide range week. The NIFTY gained over 650 points, nearly 4% when compared to last Friday’s closing. The next week again may be choppy and narrow. The short-term trend is up. Support is visible around 16300 while resistance should emerge around16850.

BANK NIFTY:

Bank Nifty opened at 36026.55 With a gap up of 136 points. The index initially moved down and filled the gap within the first 5 minutes of trading. Prices then rallied sharply and faced resistance around 36300. Prices have recorded its intraday low at 35887.35 and intraday high at 36331.70 and finally closed at 36226.15 with a gain of 336 points. PVT BANKS have outperformed today, saw a sharp upside move, and closed higher by 1.43%.PSU BANKS have also moved up today and ended with a gain of 0.60%.Within the index, in terms of points, HDFC BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest.

The short-term trend is up as the index has been closing higher for the last six trading days. Support is now visible around 35500 while resistance is visible around 37000.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Reliance Industries (RIL) is all set to announce its financial results for the quarter ending June 30, 2022 (Q1FY23), on Friday. Its subsidiaries, Reliance Jio and Reliance Retail, will also announce their results on Friday. The company, in FY22, had become the first Indian company to clock a revenue of over $100 billion. In FY22, the company reported a 47 per cent growth year-on-year (Y-o-Y) in the gross revenue. It was $104.6 billion or Rs 7.92 trillion. For Q4FY22, the consolidated gross revenue for the company stood at Rs 2.32 trillion, 35.1 per cent higher than the same quarter in the previous year.

• Fitch Ratings has downgraded Jubilant Pharma Ltd’s Long-Term Issuer Default Rating (IDR) from “BB” to ‘BB-‘ as the rise in its capital expenditure will coincide with lower profitability. This could see its financial leverage worsen beyond earlier estimates. Fitch has also downgraded the company’s senior unsecured rating and that of its $200 million 6 per cent senior unsecured notes due 2024 to ‘BB-‘, from ‘BB’.

• Aditya Birla Group’s metals flagship Hindalco Industries and Aequs have entered into a strategic pact for long-term collaboration and joint business development in the commercial aerospace sector. The move will strengthen the commercial aerospace business of Aequs Pvt Ltd.

• Bharti Airtel Chairman Sunil Mittal has said that the company will be at the forefront of bringing 5G connectivity to India with a powerful network to support the country’s digital-first economy. The comments from Mittal assume significance as the countdown for 5G spectrum auctions has begun.

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

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