Morning Outlook 27th July, 2022

NIFTY:

Today, the NIFTY opened at 16632.90 without much of a gap. The index continued its bearish momentum from yesterday and started drifting downwards after recordings intraday high at 16636.10. A sharp decline brought prices near 16500 and the index found support there. A rally then began which fizzled out in the second half and prices resumed their down move. The index then broke 16500 and moved further on the downside to recordings an intraday low at 16463.30. Prices have finally closed at 16483.85 with a loss of 147.15 points or0.88% down. All the sectoral indices have seen a down move today and ended lower except the MEDIA which ended with a gain of 0.86%. IT led the bears today and ended with a loss of nearly 3%. The index recorded a swing high around 16700 this level should now act as a resistance. The trend is up as prices are moving in the formation of higher highs and higher lows. The support is visible around 16300 which was also a breakout point of a trading range. Fresh trades should emerge either around 16300 or on dose above 16700. As far as prices are moving between these levels, we should step aside and avoid trading the index. We should now wait for a decisive breakout on either side of the markets.

BANK NIFTY:

Today, the BANK NIFTY opened at 36688.55 with a minor gap up. The index did not sustain there and started drifting downwards after the open. Prices have recorded their intraday high at 36695.75 and saw a sharp intraday decline that brought prices below 36400. An upside move came in the afternoon but the rally fizzled out quickly. Prices recorded their intraday low at 36334.10 and finally closed at 36349.85 with a loss of 318 points. PVT and PSU BANKS both have performed almost the same today, saw an intraday decline, and ended lower by 0.94% & 0.69% respectively. Within the index, in terms of points, BANK BARODA contributed the highest on the upside while AXIS BANK contributed the lowest. Prices have rallied, touched 37000 and then move down. Support is visible around 35500. As of now, we should step aside and avoid trading the index. We should wait for prices to find support.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• The Competition Commission has approved the purchase of stake in Tata Power Renewable Energy Ltd (TPREL) by Greenforest New Energies Bidco. The proposed combination relates to the acquisition of up to 11.43 per cent stake in TPREL by Greenforest New Energies Bidco, an investment vehicle jointly run by BlackRock and Mubadala Investment Company.

• Union Bank of India on Tuesday reported a 32 per cent rise in standalone net profit to Rs 1,558.46 crore for the quarter ended June 2022, helped by a fall in bad loans. Its core interest income also rose at a healthy rate. The bank had posted a standalone net profit of Rs 1,180.98 crore in the year-ago quarter. Its total income during the April-June period rose to Rs 20,991.09 crore against Rs 19,913.64 in the same quarter of 2021-22, Union Bank of India said in a regulatory filing.

• India’s crude steel production rose over 6 per cent year-on-year to 10 million tonnes in June 2022, according World Steel Association. As per the World Steel Association (worldsteel) data, India is the only country which has registered a positive growth in its steel output during June. The country had produced 9.4 million tonnes (MT) crude steel during the same month last year, the global industry body said in its latest report.

• Asian Paints reported an 80.39 per cent increase in its consolidated net profit to Rs 1,036.03 crore for the first quarter ended on June 30, 2022, as the business grew both in volume and value terms. The company had posted a net profit of Rs 574.30 crore during the April-June quarter of the previous fiscal, Asian Paints said in a regulatory filing.

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

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