Morning Outlook 26th August, 2022

NIFTY:

The NIFTY opened at 17679 with a gap up of 75 points. The index continued its bullish momentum and went above 17700 but soon formed a narrow trading range. Prices have found repeated resistance around 17700 and support around 17650 during the day and spent most of the time within this narrow range which eventually broke down. The index recorded its intraday high at 17726.50, saw a sharp intraday decline, recorded its intraday low at 17487.45, and finally closed at 17522.45 near its daily lows with a loss of 82.5O points or 0.47% down. All the sectoral indices have closed lower today except the REALTY which ended with a gain of 1.47%. IT and METAL led the bears today and ended with a loss of over half a percent. A gap-up opening did not sustain today. The bias was bearish today as the index closed near its daily lows. The short-term trend is sideways. The volatility is high and likely to continue rising. We have a support level of around 17400 and a resistance level of around 18000.These levels are yet to be confirmed but we are anticipating that the index may spend weeks within these levels. We should now wait for an adequate setup to emerge for fresh trading opportunities. 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 39190.05 with a gap up of 103 points. The index started moving upwards after the opening and found strong resistance around the 39400 – 39500 zone in the afternoon. Prices have recorded its intraday high at 39471.75 and then saw a steep fall towards the end of today’s trading session. The index recorded its intraday low at 38803.70 and finally closed at 38847.95 with a loss of 240 points. PSU BANKS have significantly outperformed today and closed with a gain of 2.74%. PVT BANKS have underperformed today and ended with a loss of just 0.15%. Within the index, in terms of points, PNB contributed the highest on the upside while HDFC BANK contributed the lowest. 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. Volatility is rising and we can see that during the day how prices fluctuate randomly. Avoid trading the index and wait for an adequate setup to emerge

 

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks declined after a volatile final hour of trade on the expiry day of August series derivatives contracts. The Sensex and Nifty reversed course, dragged by information technology, banking stocks ahead of the crucial Jackson Hole annual economic symposium of the U.S. Federal Reserve which begins today.

• DreamFolks Services Ltd.’s Rs 562.10-crore initial public offering continued to see investor demand on the second day of subscription. he IPO subscribed 4.33 times as of 3:00 p.m. on Aug. 25. Institutional investors: 0.42 times. Non-institutional investors: 4.68 times. Retail investors: 15.52 times.

• Auto components maker UNO Minda (formerly Minda Industries) will be investing up to Rs 300 crore to expand capacities at its two plants in Haryana. The Manesar-based company is in need of increasing its production capacity of alloy wheels and automotive switches for four-wheelers, it said today.

• The government on Thursday decided to put restrictions on the export of wheat flour to curb rising prices of the commodity. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi here.

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

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