Morning Outlook 2nd May, 2022

NIFTY:

Nifty opened at 17329.25 with a gap up of 84 points. The index first moved down, filled the gap, found support there, and then started an upside move. The rally was slow and steady and prices have kept on moving higher to record its intraday high at 17377.65. The index faces strong resistance there and is turned down. A sharp decline brought prices to its intraday low at 17053.25 towards the end of today’s trading session and the index finally closed at 17102.55 wit h a loss of 142.50 points or 0.83% down. All the sectoral indices have participated in today’s decline. MEDIA and OIL GAS led the bears today by ending more than 2% lower followed by the AUTO and REALTY which ended 1% lower.

NIF1Y has been oscillating in a broader range for the last two weeks and there’s no clarity over the next directional move yet. The range is moderately narrow with support around 17000 and resistance around 17500.The short-term trend is sideways and prices have been very volatile for the whole week with one day up and one day down movement. Our bias is still sideways and we are suggesting waiting for a decisive break from the range.

BANK NIFTY:

Bank Nifty opened at 36474.05 with a gap up of just 50 points. The index first moved down, found support, and then started an upside move. Prices have recorded its intraday high at 36718.80 and then turned down. A sharp intraday decline brought prices to its intraday low at 35978.95 and the index finally closed at 36063.75 with a loss of 361points.
PSU BANKS have led the bears today and closed wit h a loss of 1.67%. PVT BANKS have also seen a down move today and ended lower with a loss of

0.83%.Within the index, in terms of points, HDFC BANK contributed the highest while AXIS BANK contributed the lowest.

The short-term trend is still sideways. We have mentioned a narrow trading range inside the 35800 – 37000 zone. Prices have remained inside this range and now trading near the lower end of this range.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Wipro, India’s fourth largest software company, has reported a 3.9% year on-year rise in March quarter net profit, ahead of analyst estimates, but operating margins were under pressure as attrition rose. The Bengaluru-based company forecast a 1-3% growth for its IT services business for the ongoing quarter which began in April, and double-digit growth during FY23. It also estimated operating margin in the 17-17.5% range in the medium term.

• India’s core sector growth slowed to 4.3% in March after it grew 6.0% in February 2022, data released by the commerce and industry ministry showed on Friday. The cumulative growth rate of Index of Eight Core Industries (ICI) stood at 10.4% during April-March 2021-22 compared to the same year in the previous fiscal.

• Ambuja Cements Ltd, part of Swiss building material major Holcim group, plans to increase cement capacities and move closer to its target of 50 million tonnes per annum in the near future. “Ambuja has ambitious growth plans to increase cement capacities. The company is well-positioned to meet the expanding demand, and has commissioned a modern green cement plant at Marwar,” Ambuja Cements Ltd (ACL) said at its 39th Annual General Meeting, which was held virtually.

• Maruti Suzuki India Ltd.’s fourth-quarter profit rose, beating estimates, aided by improved demand, higher volumes, cost cuts and price hikes. Net profit for India’s largest carmaker jumped 57.7% year-on-year to Rs 1,839 crore in the quarter ended March, according to an exchange filing. That compares with the Rs 1,482.1-crore consensus estimate of analysts tracked by Bloomberg. Revenue was up 11.3% at Rs 26,740 crore, compared with the Rs 26,662-crore estimate.

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

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