Morning Outlook 25th May, 2022

NIFTY:

Nifty opened 16225.55 without much of a gap. The index initially moved up but the rally fizz led out quickly and prices have moved down after recording its intraday high at 16262.80. Prices have seen a down move of almost 150 points and then turned up. Prices have rallied and reached the morning highs but again turned downfn0 there wit h more pace. Prices have seen another down move of almost 200 points and recorded its intraday low at 16078.60. The index finally closed at 16125.15 with a loss of 89.55 points or 0.55% down. BANK & FINANCIAL out performed today and closed with gains. The AUTO ended almost flat today. FMCG, METAL,PHARMA, IT, and REALTY underperformed today and closed lower by more than 1%.

The range has appeared after a sustained down move of more than 100 points. So this range may continue fora couple of weeks. The volatility is very high as the volatility index ‘INDIA V IX’ again rose above 25 levels. For stable volatility, it needs to come around 15 -18 levels. summary here is we should avoid trading the index and wait for an adequate setup to emerge.

BANK NIFTY:

Bank Nifty opened at 34223.20 with a gap up of just 66 points. The index recorded its intraday low at 34115.80 within the first five minute of trading then moved up but the rally fizzled out quickly. Prices again rallied and recorded its intraday high at 34586.45. The index again turned down and prices came close to its opening tick. Finally, the index closed at 34305.70 with a gain of 148 points. PSU BANKS have underperformed today and ended lower by 0.21%.PVT BANKS have outperformed today and closed on a flat note. Within the index terms of points, HDFC BANK contributed the highest on the upside while AXIS BANK contributed the lowest. We have mentioned that a trading range is now visible inside the support at 33000 and resistance at 35000.We can now narrow it to 33200- 3480 The range is wide enough and likely to remain intact for a couple of weeks.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India is set to restrict sugar exports as a precautionary measure to safeguard its own food supplies, another act of protectionism after banning wheat sales just over a week ago. The government is planning to cap sugar exports at 10 million tonnes for the marketing year that runs through September, according to a person familiar with the matter. The aim is to ensure there are adequate stockpiles before the next sugar season starts in October, the person said, asking not to be identified as the information is private.

• Public sector lender Bank of India’s (BOI) net profit rose by 142.3 per cent to Rs 606 crore in Q4FY22, on improvement in net interest margins. It had posted a net profit of Rs 250 crore in Q4FY21, the bank said in a statement. For FY22, the net profit rose by 57.6 per cent to Rs 3,405 crore from Rs 2,160 crore in FY21.

• Life Insurance Corporation of India (LIC) on Tuesday said its board will consider dividend, when it discloses its maiden quarterly results on May 30, Monday. In a filing to BSE, LIC said it will consider and approve the audited financial results, standalone and consolidated, for the quarter and year ended on March 31, 2022, and payment of dividend, if any, on May 30.

• The board of Aditya Birla Fashion and Retail (ABFRL) on Tuesday approved raising up to Rs 2,195 crore by way of preferential issuance of equity and warrants to an affiliate of GIC, Singapore’s sovereign wealth fund (GIC), the company said in a statement. GIC will first invest Rs 770 crore towards subscription of equity and warrants, followed by up to Rs 1,425 crore in one or more tranches within 18 months upon exercise of warrants.

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

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