Morning Outlook 28th July, 2022

NIFTY:

Today, the NIFTY opened at 16475.35 without much of a gap. The index initially moved down but soon finds support around 16450 and bounced up sharply. Prices recorded their intraday low at 16438.75 within the first 30 minutes of trading and then takes a U-turn. The rally continued for the whole day with minor dips in between. The index broke above 16600 and rallied further to record its intraday high at 16653.45. Prices have finally closed at 16641.80   with a gain of 157.95 points 0.96% up. All the sectoral indices have seen an upside move today and closed higher. PHARMA and MEDIA outperformed today by ending more than 2% higher. BANK IT and REALTY also did well today and ended with a gain of over 1%. The short-term trend is up. We have seen a sharp upside move from 15900 to 16750, a rally of about 850 points. After such a sharp move, prices tend to consolidate. This is what happened in the NIFTY also. Prices have been moving sideways for the last six trading days and locked themselves inside a narrow range of 16450 – 16700. 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 36370.55 without much of a gap. The index initially went lower but soon finds Support. Prices have recorded their intraday low at 36248.60 and bounced up sharp. The rally continued for the whole day and the index recorded its intraday high at 36808.30.prices have finally closed at 36795.40 with a gain of 446 points. PSU BANKS have performed well today and closed higher by 2.01%. PVT BANKS have also moved up today and ended with a gain of 0.89%, within the index, in terms of points, SB contributed the highest on the upside while KOTAK BANK contributed the lowest. It was again trend day today but, on the upside, where prices have recorded their intraday low near the opening tick and intraday high near the closing tick. The index moved sharply in the first half while the second half moved sideways. The short-term trend is up. A narrow trading range is now visible on the daily time frame chart inside 35900 – 37000. The range is yet to be confirmed but a breakout on either side may give us a directional move. As of now, we should step aside and avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

   Domestic                                                                                                                                                  InternationalINR:  Nikkei S&P Global Manufacturing PMI (Jul) on 1st August, 2022

•USD:  GDP (QoQ) (Q2) on 28th July, 2022

•USD:  Initial Jobless Claims on 28th July, 2022

NEWS UPDATES

• Bajaj Finance on Wednesday reported 159% jump in consolidated net profit at Rs 2,596 crore for the quarter ending June 30, 2022. It reported consolidated net profit of Rs 1,002 crore in the year-ago period. The company’s assets under management grew by 28% to Rs 2.04 trillion as of June 30, 2022.

 

• To help achieve the Centre’s target of having 100 million tonnes (MT) of coal gasification capacity in the country by 2030, five public sector undertakings (PSU) will set up manufacturing units, senior officials said. National miner Coal India (CIL), manufacturing major BHEL, GAIL, Indian Oil Corporation (IOCL), and Neyveli Lignite Corporation (NLC) will set up five manufacturing units for coal gasification.

 

• Bharat Forge subsidiary BF Infrastructure has partnered with Talgo for manufacturing high speed trains in India. Talgo is a wholly owned subsidiary of Spain-based high speed passenger train manufacturer Patentes Talgo. The company has more than 75 years’ experience in design, manufacturing and maintenance of trains. The joint venture will focus on bringing high-speed rail technology and solution to Indian Railways. It will tap into any upcoming domestic opportunities in the railways and boost India’s atmanirbhar vision.

 

• Telecom market leader Reliance Jio’s estimated spends after Day 1 of India’s ongoing 5G spectrum sale is already pegged upwards of Rs 80,000 crore as it’s likely to have bought pricey airwaves in the 700 MHz band, pan-India, in addition to mid-band (3.3-3.67 GHz) and high-band (26 GHz) airwaves, analysts said.

 

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

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