Morning Outlook 29th June, 2022

NIFTY:

Nifty opened at 15757.45 with a gap down of 75 points. The index initially moved down but found strong intraday support around 15700 and bounced up. The index recorded its intraday low at 15710.15 and saw a sharp rally that filled the down gap. A sharp dip came in the afternoon but prices soon resumed its up move. The index again rallied with more pace and momentum and recorded its intraday high at 15892.10.Prices have finally closed at 15850.20 near its day high with a gain of just 18.15 points or 0.11% up. OIL GAS outperformed today, led the bulls, and ended with a gain of 2.27%. META L and IT also performed well today and ended with a gain of 1.67% & 1.25% respectively.

Support should emerge around 15200 which is also a recent swing low. The volatility again rose today as the INDIA V IX is now moving above the level 21. For normal volatility, it needs to come below level 18. We should step aside and avoid trading the index

BANK NIFTY:

Bank Nifty opened at 33578.20 with a gap down of 236 points. The index initially consolidated and then moved down. Prices have found support around 33500 and bounced up after recording its intraday low at 33503.30. A rally brought prices to its intraday high at 33745.30 and then prices again moved down. Prices have moved very choppily today and finally ended at 33692.25 wit h a loss of 122 points. PSU BANKS have outperformed today and ended with a gain of 0.46% whereas PVT BANKS have underperformed today and ended wit h a loss of 0.73%.Within the index, in terms of points, AXIS BANK contributed the highest on the upside while ICIC IBANK contributed the lowest.

The intraday range was very narrow today as the index moved within a range of just 242 points. This narrow movement indicates a sharp move is about to come. However, the direction is unknown. We should take a trade in the direction of a breakout tomorrow.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Reliance Jio board on Tuesday approved the appointment of Akash Ambani as Chairman of Board. Reliance Industries chairman and father of Akash Ambani, Mukesh Ambani, resigned as Director of the telecom major effective June 27. Jio named Raminder Singh Gujral, K V Chowdary as directors for a period of five years commencing from June 27, 2022. Jio also approved appointment of Pankaj Mohan Pawar as Managing Director of the company for five years commencing from June 27, 2022.

• Nearly 87 per cent of enterprises in India are likely to increase annual artificial intelligence (AI) spending by more than 10 per cent in the next three years, a new report showed on Tuesday. Approximately 80 per cent of enterprises in the country have at least one AI model in production, indicating an extensive penetration of AI/machine learning (ML) across enterprises.

• The name of Ruchi Soya Industries stands changed to Patanjali Foods with effect from June 24. The firm has also received the certificate of incorporation from the Ministry of Corporate Affairs, it said in an exchange filing. In May, Ruchi Soya Industries announced the acquisition of Patanjali Ayurved’s entire food business for Rs 690 crore, in order to accelerate its transition into an FMCG company.

• Tata Motors will be hiking the prices of its commercial vehicles from July 1, 2022, the company said in a stock exchange filing on Tuesday. An increase in price in the range of 1.5-2.5% will come into effect across the range, depending upon individual model and variant, it said in a press release.

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