Morning Outlook 27th October, 2022

NIFTY:

The NIFTY opened at 17808.30 with a gap up of 78 points when we compared it to the Muhurat day closing price. The index recorded its intraday high at 17811.50 and saw a sharp dip. Prices have filled the gap, fallen further, and then started moving sideways inside a tight narrow range. Another leg of the decline came towards the end of today’s trading session. Prices have broken on the downside and recorded its intraday low at 17637. The index finally closed at 17656.35 with a loss of 74.40 points or 0.42% down. AUTO outperformed today by closing 1.24% higher followed by IT which ended 0.66% higher. FMCG underperformed today by closing 1.03% lower followed by FINANCIAL which ended 0.78% lower. A gap-up opening did not sustain, and the NIFTY has seen a sharp intraday decline to close near its daily lows. The short-term trend is still up as it was just one day of decline. After the recent upsurge, it is possible that we may see a process of consolidation or correction here. Support is visible around 17400 while we have a resistance zone inside 17800 – 18000. The volatility is normal as the INDIA VIX, a benchmark index for volatility, is moving below level 17. However, it is also suggested that we may see some increase in volatility soon. As of now, we should avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 41513.65 with a gap up of 213 points when we compared it to the Muhurat day closing price. The index recorded its intraday high at 41530.65 and saw a sharp fall. Prices then went into a consolidation which eventually broke on the upside. However, the index did not rally much and again moved down. Prices recorded its intraday low at 41021.45 and finally closed at 41045.50 with a loss of 259 points. PSU BANKS have outperformed today and closed higher by 3.50% whereas PVT BANKS have underperformed today and closed lower by 0.84%. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest. The short-term trend is up and it will be up as far as prices are trading above 39500 support. Short-term support is visible around 40500. The only visible resistance is at around 41840 which is also a life time high. After the recent upside move, It is possible that the index may take a pause and see a dip or consolidation. We should now wait for the one and then plan our trade accordingly. Till then avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices broke seven day winning streak and ended lower with Nifty below 17700 on October 25.At Close, the Sensex was down 287.70 points or 0.48% at 59,543.96, and the Nifty was down 74.50 points or 0.42% at 17,656.30. About 1378 shares have advanced, 1951 shares declined, and 106 shares are unchanged.

• Realty major DLF plans to launch new projects worth Rs 3,500 crore during the second half of this fiscal, mainly in Gurugram and Panchkula as it seeks to tap a rising demand.

• Home-grown FMCG firm Dabur India said it will acquire 51 percent stake in Badshah Masala in a Rs 587.52-crore deal, marking its entry in the fast-growing spices and seasoning category.

• Gloomy results from Alphabet and Microsoft stoked fears of a global economic downturn and derailed an earnings-led surge in stock markets on Wednesday, while setting the tone for results from other mega-cap technology giants.

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

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