Morning Outlook 29th September, 2022

NIFTY:

The NIFTY opened at 16870.55 with a big gap down of 137 points. Initially, the index moved lower but quickly turned around and started rising after recording a low of around 16825. The index has seen a sharp intraday rally of about 200 points, filled the gap, and moved above 17000. However, the index found strong resistance there and started drifting downwards. Prices have recorded its intraday high at 17037.60, moved down below the early morning low, and recorded its intraday low at 16820.40. The index finally closed at 16858.60 with a loss of 148.80 points or 0.87% down. PHARMA outperformed today by ending 0.85% up followed by IT which ended up by 0.24%. BANK and FINANCIAL underperformed today leading the bears and ending lower by 1.56% & 1.23% respectively. The short-term trend is down. We have mentioned a strong support zone around 16800 – 17000. We have news even this week as the RBI will announce the policy meeting’s outcome on Friday. It will increase the volatility which is already very high as the INDIA VIX, a benchmark index for volatility is now moving around 22. A move below 20 will be the first sign of a stable market. We should now wait for prices to find support and form a consolidation. Till then avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 38081.25 with a big gap down of 439 points. The index initially moved down but quickly rebound and turned up. A rally started but failed to fill the gap and prices turned down after recording its intraday high at 38368.80. The index has seen a sharp decline till the end, recorded its intraday low at 37626.20, and finally dosed at 37663.50 near its day lows with a loss of 857 points. PVT and PSU BANKS both indices have performed almost the same today, saw a sharp decline, and closed lower by 1.44% & 2.07% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the downside followed by AXIS BANK. The decline continued for the sixth consecutive trading day and the index dosed lower with a loss of over one and a half percent. Prices moved very volatile after a gap down opening and saw a sharp intraday fall in the second half. The short-term trend is down which is obvious. Support around 38000 broken down and next support may emerge around 37000. Resistance is visible at around 39500. We should wait for this decline to be stopped and then form some kind of consolidation.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended on negative note with Nifty below 16900 in the volatile session on September 28. At Close, the Sensex was down 509.24 points or 0.89% at 56,598.28, and the Nifty was down 148.80 points or 0.87% at 16,858.60. About 1296 shares have advanced, 2039 shares declined, and 103 shares are unchanged.
• Reliance Industries Ltd., Infosys Ltd. and Tata Consultancy Services Ltd. are set to see their weight decline in the Nifty 50 index following Adani Enterprises Ltd.’s entry, according to Edelweiss Securities Ltd. Adani Enterprises’ inclusion with a weight of 1.29% from Sept. 30 will attract inflows of Rs 33.60 crore, Edelweiss said in its report.
• Shares of Torrent Pharmaceuticals Ltd. fell the most in eight months after analysts said the valuation of its acquisition of Curatio Healthcare (I) Pvt. is expensive even as they expect the deal to enhance the drugmaker’s presence in dermatology and inch up its revenue from the segment. Torrent Pharma has agreed to fully acquire the sunscreen lotions-to-baby-soap maker for a cash consideration of Rs 2,000 crore, according to its Sept. 27 exchange filing.
• The Indian rupee closed at a record low against the U.S. dollar on Wednesday. The local currency fell 0.37% to 81.87 at open. During the day, the rupee depreciated as much as 0.46% to its intraday low of 81.95—a fresh record low. It ended Wednesday’s trade at 81.94, its worst close ever.

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

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