Morning Outlook 2nd June, 2022

NIFTY:

Nifty opened at 16594.40 without much of a gap. The index initially went higher and then quickly faced resistance. Prices have recorded its intraday  high at  16649.20 and turned down. The decline brought prices into negative territory but soon it found strength and moved up again. The rally fizzled out before reaching the early morning highs and then prices started consolidating. The consolidation broke on the downside, prices have seen a sharp decline and recorded its intraday low at 16438.85. The index finally closed at 16522.75 with a loss of 61.80 points or 0.37% down. BANK, Financial and METAL outperformed today and closed with gains. IT,PHARMA, and REALTY underperformed today and ended with a loss of more than 1%.

However, a sharp recovery in the last 30 minutes of trading helped the index to recover some of the losses. The short-term trend is still up and we should look for buying only Strong support is visible around 16350 – 16400 zones while resistance should emerge around 16900 – 17000.

BANK NIFTY:

Bank Nifty opened at 35358.95 without much of a gap. Prices moved higher from the opening and saw a sharp rally of more than 400 points. The index recorded its intraday high at 35768.70 and then turned down. Prices have erased all the gains and recorded its intraday low at 35285.45. Prices again rallied in the last 30 minutes of trading and finally closed at 35679.70 with a gain of 317 points. PSU and PVT BANKS both have performed almost the same today, saw an intraday rally, and closed higher by 0.70% & 0.32% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest.

BANK NIFTY outperformed today and ended wit h gains. It was again a volatile day today where the index has seen three moves of almost 400 points, two were up and one was down. The short-term trend is still up and we should look for buying only. Look to buy on a dip at or below 34500 with a stop of 300 points and a target of 800 points.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Goods and services tax (GST) collections slipped below the Rs 1.5 trillion mark in May. India saw gross GST collections of Rs 1.41 trillion during the month. However, the collections in May are 44 per cent higher than the same month in 2021. In April, GST collections had touched a record high of Rs 1.68 trillion, surpassing the Rs 1.5-trillion mark for the first time.

• Mahindra & Mahindra (M&M) on Wednesday said its total sales stood at 53,726 units in May. The company had reported total sales of 17,447 units in Covid-hit May 2021. “With sales of 26,632 SUVs in May, we continued the growth momentum with all our brands performing well, including XUV700 and Thar,” M&M President (Automotive Division) Veejay Nakra said.

• The FMCG industry saw decline in volume in the January-March period as consumption was impacted by price increases, especially in the food and essentials categories, said a report by data analytics firm NielsenIQ. Rural India witnessed 5.3 per cent dip in volume in the period.

• India’s petrol and diesel sales soared in May on the back of a surge in summer travel to escape from the heat and vacation during annual breaks at educational institutions, preliminary industry data showed on Wednesday. Petrol sales by state-owned fuel retailers, which control roughly 90 per cent of the market, at 2.8 million tonnes in May was 55.7 per cent higher than the same period last year when a devastating second COVID-19 wave wreaked havoc on the economy.

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

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