Morning Outlook 2nd August, 2022

NIFTY:

NIFTY opened at 17243.20 with a gap of 85 points. The index initially moved lower for the first five minutes of trading and filled the gap but also found support there. The index recorded its intraday low at 17154.80 and bounced up. Prices have rallied sharply, almost reaching near 17300, and then consolidated there for almost the whole afternoon. Prices broke above, rallied again, and recorded their intraday high at 17356.25. The index finally closed at 1734 0.05, near its daily highs with a gain of 181.80 points of 1.06% up. All sectoral indices have seen an upside move today and closed higher except PHARMA which ended with a minor loss. AUTO outperformed and ended 3.27% higher followed by OIL GAS which ended with a gain of 2.12%. The NIFTY started the week on a positive note, in continuation of last week’s trend, and closed higher for the fourth consecutive trading day. The short-term trend is up as prices are making a bullish pattern of lower highs and lower lows. Support is now visible at around 17000. This means we should look for buying opportunities as far as the index is moving above 17000. On the higher side, resistance may emerge around the 17300 – 17400 zone. Prices have reached this zone today. So we need to see if this resistance holds. Fresh trade should emerge either on a dip or if the index again consolidated and formed a narrow trading range.

BANK NIFTY:

Today, the BANK NIFTY opened at 37594.15 with a gap of 108 points. The index did not sustain at higher levels and started moving lower. However, prices quickly rebound and rallied after recording their intraday low at 37407.20. The rally continued for the whole day, prices recorded their intraday high at 37939.60 and finally closed at 37867.15 with a gain of 381points. PSU and PVT BANKS both have performed well today, saw an upside move, and closed higher by 1.66% & 1.11% respectively. Within the index, in terms of points, KOTAK BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest. The short-term trend is up as prices are making a bullish pattern of higher highs and higher lows. As mentioned earlier, support is now visible at around 36800 while resistance may appear around 38000. As of now, we do not have an adequate setup to trade so we will avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Cigarettes-to-hotels major ITC on Monday reported a 33.98 per cent year-on-year (YoY) jump in its consolidated net profit, which came in at Rs 4,389.76 crore, amid growth across segments. In the year-ago period, profit was Rs 3,276.48 crore. Net sales came in at Rs 18,353 crore, up 39.2 per cent YoY and well ahead of expectations. A poll of analysts by Bloomberg had estimated its revenue at Rs 11,760 crore and net income at Rs 3,974 crore.

• Food aggregator Zomato reported a consolidated loss of Rs 186 crore in the first quarter of 2022-23. Its losses eased on both year-on-year (YoY) and sequential bases. The company’s consolidated loss was Rs 359 crore in Q1FY22 and Rs 359.7 crore in Q4FY22. Revenue for the June 2022 quarter came in at Rs 1,413.9 crore, up 67.45 per cent YoY and 16.7 per cent quarter-on-quarter (QoQ). India’s telecom industry is likely to see an investment of Rs 2-3 trillion in the next two years as reforms by the government have removed uncertainty and risks, and provided a stable investment regime, Communications Minister Ashwini Vaishnaw said on Monday. Buoyed by record bids in the auction of 5G spectrum, Vaishnaw said he expects investments to be infused into both fourth and fifth generation technologies, for providing better voice quality and high-speed data.

• TVS Motor Company on Monday reported a 13 per cent increase in total sales at 3,14,639 units in July. The company had posted a total sales of 2,78,855 units in the same month last year, TVS Motor Company said in a statement. Total two-wheelers sales were up 14 per cent at 2,99,658 units last month, as against sales of 2,62,728 units in July 2021, it added.

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

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