Morning Outlook 29th August, 2022

NIFTY:

The NIFTY opened at 17619.30 with a gap up of 97 points. The index continued moving higher for the first 15 minutes of trading, recorded its intraday high at 17685.85, and faced strong resistance there. Prices have drifted downwards and kept moving lower for almost the whole day with minor rallies in between. These rallies fizzled out quickly and brought prices to its intraday low at 17519.35. Prices filled the gap but saw some recovery in the last 30 minutes of trading and finally closed at 17558.90 with a gain of 36.45 points or 0.21% up. METAL led the bulls today and ended with a gain of 1.77%. OILGAS and AUTO followed and ended with 0.58% and 0.40% gains respectively. MEDIA underperformed today and finished with a loss of 0.66%. On a weekly timeframe chart, the NIFTY snapped five weeks of a higher closing streak and ended with a loss of more than 1% when compared to the last week’s closing price. The short-term trend is sideways. The NIFTY made a pattern of Inside Day today which represents contraction and may lead to a phase of expansion may be in the next week. We have a support level of around 17400 and a resistance level of around 18000. However, a short-term resistance is now visible around 17700. A breakout may lead prices to the 17950 – 18000 zone. We should now wait for an adequate set up to emerge for fresh trading opportunities. As of now, we should avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 39129.65 with a big gap up of 282 points. The index moved further on the upside and faces strong resistance around 39300. Prices have started moving downwards after recording its intraday high at 39337.10. Another up move came in the afternoon but the rally fizzled out and prices have kept on drifting downwards to record its intraday low at 38846.80. A minor recovery came in the last 30 minutes of trading and the index finally closed at 39036.60 with a gain of 189 points. PSU BANKS have outperformed today and closed with a gain of 0.98%. PVT BANKS have underperformed today and ended with a loss of 0.28%. Within the index, in terms of points, KOTAK BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest. BANK NIFTY moved very narrow and choppy today and closed a few ticks above 39000 with some gains. On the weekly timeframe char, the index closed almost on a flat note when compared to last week’s closing price. The short-term trend is sideways. We now have a support level of around 38000 and a resistance level of around 40000. This range has yet to be confirmed but it is most likely that prices may move within these boundaries for a few weeks. Avoid trading the index and wait for an adequate set up to emerge.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks snapped five-week winning streak, dragged by losses in information technology and pharma stocks, ahead of much anticipated address by U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole annual economic symposium. Nifty PSU Bank was the top sectoral gainer while Nifty IT index fell the most.

• India’s public sector banks are profitable and do not need further capital infusion, according to Minister of State for Finance Bhagwat Karad. “They are in a position to lend more,” the minister told BQ Prime, as non-performing assets are decreasing and all public sector banks are profitable. “There is no need to infuse capital into these banks.”

• The initial public offering (IPO) of airport service aggregator DreamFolks Services saw 56 times subscription on the third and final day of the offer on Friday. It received bids for 53.5 crore equity shares against 94.83 lakh shares on offer, according to data available with the NSE. The quota for retail investors (RIIs) was subscribed 42.4 times, the category for non-institutional investors 37.6 times and the portion for qualified institutional buyers (QIBs) 70.5 times.

• Risk reward is less favourable for India’s information technology services sector, given two-year earnings CAGR will moderate, according to Morgan Stanley. The financial services provider assigned key ‘overweight’ on Infosys Ltd., Tech Mahindra Ltd. and Mphasis Ltd., while it remained ‘underweight’ on Wipro Ltd., HCL Technologies Ltd. and Cyient Ltd., according to its investor presentation on technology and telecom sectors released on Thursday.

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

BOARD MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL