Morning Outlook 25th November, 2022

NIFTY:

The NIFTY opened at 18326.0 with a gap up of 59 points. The index initially moved lower but soon found support and bounced up after recording its intraday low at 18294.25. A sharp rally came which took prices around 18400 and then the index started a consolidation process. A narrow trading range eventually broke on the upside. Prices saw a sharp rally in the last hour of trading, recorded its intraday high at 18529.70, and finally closed at 18484.10 near its day highs with a gain of 216.85 points or 1.19% up. All the sectoral indices have closed with gains today led by IT which ended with a gain of 2.63%. FINANCIAL and OIL GAS also did well today and ended with a gain of over 1%. The short-term trend is now up as the index closed near its swing highs. Tomorrow, we should look for a buying opportunity on any bullish sign. The idea is to wait till 09:30 AM and then look for a buying opportunity above that high. However, if prices moved down then we should look to buy on a dip at or below 18350. Traders should keep a stop of 80 points and a target of 240 points from their entry price. The volatility is very low as the benchmark index for Volatility, INDIA VIX is now moving below 14. Low volatility almost always favours the bulls.

BANK NIFTY:

The BANK NIFTY opened at 42838.35 with a gap up of 163 points. The index initially moved higher after recording its intraday low at 42769.65 and then started a consolidation process. Prices have moved in a tight narrow range for most of the time and this range finally broke on the upside. A sharp rally came in the last hour of trading, prices recorded its intraday high at 43163.40 and finally closed at 43102.5 with a gain of 427 points. PSU and PVT BANKS have both performed almost the same today, moving up and closing with a gain of 0.95% & 0.66% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. We have been tracking a narrow trading range inside 42000 – 42700 which broke on the upside yesterday. Since the range was very narrow so we should expect a sharp move. The short-term trend is up now and we should look for buying only. Support is now visible around 42500 while there is nonvisible resistance as the index is trading at its lifetime highs.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher with Sensex hitting fresh record high and Nifty crossing 52-week high.At Close, the Sensex was up 762.10 points or 1.24% at 62,272.68, and the Nifty was up 216.80 points or 1.19% at 18,484.10. About 1886 shares have advanced, 1494 shares declined, and 133 shares are unchanged.

• Easy Trip Planners shares rose 40 percent after a stock split and 3:1 bonus issue, suggesting that operators may have taken advantage of the absence of tight norms for the issue of bonus shares, market experts said.

• One 97 Communications Ltd., the operator of India’s largest digital-payments provider known as Paytm, has capped the worst first-year share plunge among large IPOs over the past decade — and the pain is worsening.

• Bisleri International Pvt. is looking to sell a stake to Tata Consumer Products Ltd., according to Ramesh Chauhan

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

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