Morning Outlook 27th June, 2022

NIFTY:

Nifty 15657.40 with a gap up of 101 points. The index continued moving higher for the first 15 minutes of trading and rallied further to record its intraday high at 16749.25. Prices turned down and headed towards yesterday’s closing price to fill the gap. However, the index found support in between and again bounced up after recording its intraday low at 15619.45. Prices have seen an up move in the second half and then consolidated for the last half hour of trading. The index finally closed at 15699.25 with a gain of 142.60 points or 0.92% up. All the sectoral indices have closed higher today except the IT which ended 0.89% lower. BANK, FINANCIAL, AUTO, OIL GAS, and METAL led the way today on the higher side and ended with a gain of more than 1%.

Strong resistance may emerge inside 15800 – 16000 zones while a short-term resistance is now visible around 15700.The index is now trading almost at this level. We are expecting a process of consolidation here. We should step aside and avoid trading the index. We should wait for prices to suggest to us any adequate setup to trade.

BANK NIFTY:

Bank Nifty 33434.80 With a gap up of 263 points. The index continued its bullish momentum and moved further on the upside. Prices have recorded its intraday low at 33390.85 a few ticks below the opening price and then consolidated in a tight narrow range. Prices then moved up, recorded its intraday high at 33721.90, and finally closed at 33654.20 with a gain of 485 points. PVT and PSU BANKS both have performed almost the same today, saw an upside move, and ended with a gain of 1.75% & 1.98% respectively. Within the index, in terms of points, ICIC IBANK contributed the highest on the upside followed by HDFC BANK.

The short-term trend is sideways as the index is in a process of correction after a sharp decline. As mentioned yesterday, “A recent swing low around 32300 should act as a support while strong resistance is visible around 34500.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Diversified Raymond aims to be a net debt-free company in the next three years and is focused on liquidity management through cost reduction initiatives and working capital optimisation, according to the latest annual report of the company. For the financial year ended March 31, 2022 Raymond’s net debt has been reduced to Rs 1,088 crore. It was Rs 1,416 crore in FY21 and Rs 1,859 crore in FY20.
• Dr Reddy’s Laboratories is now aiming to be among the top five pharma players in the domestic market by focusing on the chronic therapy segment. The US would continue to remain an important geography, but the firm says it hopes to double its revenues from China and grow revenues five-fold in Brazil in the next five years.
• An Indian Oil finance executive said on Friday he expects oil prices to hold above $100 per barrel for the rest of 2022 amid the Ukraine crisis. Sandeep Kumar Gupta, director of finance at Indian Oil, also said at an industrial seminar he expects economic damage from the Russia-Ukraine conflict to contribute to a significant global growth slowdown in 2022.
• Soft commodity prices slumped back to pre-Ukraine conflict levels after an intense first half of 2022 dominated by the supply turmoil and inflationary shocks unleashed by Russia’s attack on Ukraine. Crop items such as wheat is down 26.4 per cent, corn lower by 14.5 per cent, and sugar by 9.4 per cent. Cotton futures hit a 3-month low on demand concerns. While raw sugar hit a 6-week low on recession fears.

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

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