Morning Outlook 26th July, 2022

NIFTY:

Today, the NIFTY opened at 16662.55 with a gap down of 57 points. The index initially moved up and filled the gap. Prices have found strong resistance there and moved down. The index recorded its intraday high at 16706.05 and saw a down move of almost 150 points. Prices recorded their intraday low at 16564.25 and then moved higher. A rally brought prices near their opening tick and then again turned down for the last one hour of trading. The index finally closed at 16631 with a loss of 88.45 points or 0.53% down. METAL outperformed today and closed higher by 1.46%. AUTO, PHARMA, and OIL GAS underperformed today and closed lower by more than 1%. BANKS have ended almost on a flat note. The short-term is up. As we have mentioned previously also, the support is visible around 16300 while resistance should emerge around 16850. The NIFTY has broken its six days of the higher closing streak. Fresh trades should emerge around the mentioned support and resistance levels. As far as prices are moving between these levels, we should step aside and avoid trading the index.

BANK NIFTY:

Today, the BANK NIFTY opened at 36766.70 without much of a gap. The index initially moved up for the first 15 minutes of trading and recorded its intraday high at 37011.20. Prices then started drifting downwards, erasing all the gains and moved further on the downside to recording their intraday low at 36464.65. Prices then consolidate and then rallied to finally end at 36667.85 with a loss of just 70 points. PSU BANKS have underperformed today, saw a sharp downside move, and closed lower by 0.60%. PVT BANKS have ended almost on a flat note today. Within the index, in terms of points, INDUSIND BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. Support is now visible around 35500 while resistance is visible around 37000. Prices have rallied, touched 37000 and then move down. As of now, we should step aside and avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Tech Mahindra (TechM) on Monday reported a 16.4 per cent year-on-year (YoY) drop in consolidated net profit at Rs 1,132 crore compared with Rs 1,353.20 crore in the same quarter last year. The profit was in line with ET NOW analysts’ poll of Rs 1,120 crore. Revenue for the quarter came in at Rs 12,708 crore, up 24.6 per cent YoY over Rs 10,197.60 crore in the corresponding quarter last year.

• Engineering giant Larsen & Toubro (L&T) is selling its eight operational road assets that the company built and operated to Edelweiss Infrastructure Yield Plus, an infrastructure fund managed by Edelweiss Alternative Asset Advisors, for an enterprise valuation of Rs 7,000 crore, said people aware of the matter.

• Godrej & Boyce on Monday said it is investing an additional Rs 300 crore at its facility in Gujarat’s Dahej to double revenues from the process equipment arm by FY25. Godrej Process Equipment (GPE) is investing to strengthen presence in the hydrogen and power sectors for delivery of specialised and large equipment for which Rs 300 crore investment is being made, according to an official statement.

• Jyothy Labs on Monday reported an 18.73 per cent rise in its consolidated net profit at Rs 47.73 crore in the first quarter ended June 30, 2022. It had posted a net profit of Rs 40.20 crore in the April-June quarter of the last fiscal year, Jyothy Labs said in a regulatory filing. Jyothy Labs’ revenue from operations was up 13.66 per cent to Rs 597.20 crore during the period under review, as against Rs 525.40 crore in the corresponding period of the previous financial year.

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

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