Morning Outlook 29th July, 2022

NIFTY:

Today, the NIFTY opened at 16774.85 with a gap of 133 points. The index initially consolidated for about 45minutes in a narrow range and broke out on minutes in broke the upside. Prices have recorders intraday lower at 16746.25 and saw a sharp upside rally after 10 AM. In the afternoon, prices take a pause, again consolidated, and eventually the upside. However, the index finds support quickly, moved up again sharply, and recorded its intraday high at 16947.65. Prices have finally closed at 16929.90    with a gainof287.80 points or 1.73%. All sectoral indices have seen an upside move today and closed higher. FINANCIAL, IT, and REALTY outperformed today and ended with more than a 2% gain. BANK and METAL also did well today by gaining nearly 2%. The short-term trend is up and intact. We have identified a narrow trading range inside the 16450 – 16700 zone. The index broke decisively on the upside and rallied higher. Prices have almost reached the pattern target of this breakout which comes around 16950. Support is now visible around 16700. While a strong resistance zone is visible inside the 16900 – 17000 range. Since we do not have an adequate setup to trade we will avoid trading the index for the time being. Trend The long-term trend is up while the long-term momentum has been moving within the strength zone for the past few trading days.

BANK NIFTY:

Today, the BANK NIFTY opened at 37102.45 with a big gap of 307 points. The index recorded its intraday low at 37028.50 in its initial trades and continued moving higher. The rally was slow and modest but prices kept on inching upwards for the whole day. The index recorded its intraday high at 37414.40 and finally closed at 37336.25 with a gain of 541 points. PVT BANKS have performed well today and closed higher by 1.86%. PVT BANKS have also moved up today and ended with a gain of 0.38Within the index, in terms of points, KOTAK BANK contributed the highest on the upside while BANK BARODA contributed the lowest. BANK NIFTY recorded back-to-back uptrend days that brought the index above 37000 resistance. However, today prices have moved in a narrow range during the day but we have seen a big gap up opening so we can ignore this. Yesterday, we have mentioned a narrow trading range is now visible on the daily timeframe chart inside 35900 – 37000. This range has broken out on the higher side today giving us a pattern target of around 38100.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Diagnostic services provider Dr Lal Path Labs on Thursday said its consolidated net profit declined 57 per cent to Rs 58 crore for the first quarter ended June 30. The company had reported a net profit of Rs 134 crore in the April-June period of the last fiscal. Revenue from operations declined to Rs 503 crore in the period under review from Rs 607 crore a year ago, Dr Lal PathLabs said in a regulatory filing.

• Nestle warned on Thursday that price hikes could eventually weigh on sales volumes for the maker of Cheerios cereals, Kit Kat bars and Nescafe as it raised its full-year sales growth forecast to 7-8% and trimmed its margin guidance.

• Backed by a substantial rise in other income, Dr Reddy’s Laboratories Ltd on Thursday said its consolidated profit after tax (PAT) for the quarter ended June 30, 2022 was up by 108 per cent at Rs 1187.6 crore against Rs 570.8 crore in the same quarter a year ago. Revenues during the quarter under discussion were up by six per cent to Rs 5,215.4 crore compared to Rs 4,919.4 crore in the first quarter of FY22.

• Vedanta Ltd on Thursday reported 6% rise in net profit at Rs 5,592 crore for the quarter ending June 30, 2022. The company’s consolidated revenue increased 36% to Rs 38,251 crore. Sunil Duggal, Chief Executive Officer, Vedanta, said: “I am pleased to report that we have started FY23 with strong performance, underpinned by our world class assets and strength of our business model. We recorded best-ever 1Q EBITDA of Rs 10,741 crore and PAT of Rs 5,592 crore despite inflationary cost pressures.

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

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