Morning Outlook 30th May, 2022

NIFTY:

Nifty opened at 16296.60 with a gap up of 122 points. The index faces resistance after the opening, saw a mild decline but found support around 16250.The index recorded its intraday low at 16221.95 and then bounced up. Prices have seen a rally of more than 100 points and recorded its intraday high at 16370.60. Prices then moved down and again moved higher in the last 30 minutes of trading and finally closed at 16352.45 near its day’s high with a gain of 182.30 points or 1.13% up. All the sectoral indices have closed higher except the OIL GAS and METAL IT,MEDIA outperformed today with over 2.5% gains while AUTO,BANK, and FINANCIAL also did well today by ending more than 1% higher.

The index is now trading on the verge of a breakout from 16400 resistance that may come about in the next week. Volatility has also started cooling off as the volatility index INDIA VIX has dipped below 22. We should now wait for prices to close above 16400 to initiate a long trade. The short-term trend is still sideways but the bias is now changing to bullish.

BANK NIFTY:

Bank Nifty opened at 35335. with a gap up of 216 points. The index recorded its intraday low at 35291.95 in its initial trades and moved higher. Prices have been very choppy throughout the day, moved in a very narrow range but saw a steady rally. The index recorded its intraday high at 35694.85 and finally closed at 35617.70 with a gain of 418 points. PVT BANKS have outperformed today, saw a sharp intraday rally, and ended higher by 1.84%. PSU BANKS have also moved up today and closed higher by 0.79%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while AU BANK contributed the lowest. A pattern of Bullish Head & Shoulder on the daily timeframe confirmed yesterday is giving us a pattern target around 36500 whereas resistance is also visible around 36500 – 37000 zones. The short-term trend is up and we should look for buying only as far as the index is trading above 34800

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Glenmark Pharmaceuticals on Saturday said its consolidated profit after tax declined 26 per cent to Rs 173 crore for the fourth quarter ended March 31, 2022. The company had reported a profit after tax (PAT) of Rs 234 crore in the January-March period of 2020-21 fiscal.

• Hinting that Tesla will not put a manufacturing plant in India the carmaker’s Chief Executive Officer (CEO) Elon Musk on Friday tweeted that until the company is first allowed to sell and service imported cars in the South Asian country there will be no setting up of bases. Responding to an individual on Twitter, who questioned Musk vis-a-vis Tesla’s plans to put up a manufacturing plant in India, the billionaire responded.

• United Spirits Ltd. (USL), India’s largest liquor company, said it will sell about 32 mass-priced brands, including Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov, to Singapore headquartered Inbrew for a total cash consideration of Rs 820 crore. The deal includes the entire business of these brands such as related contracts, permits, intellectual property rights, associated employees, and a manufacturing facility.

• JSW Steel on Friday said that it will be merging its subsidiaries JSW Ispat Special Products (JISPL) Limited and Creixent Special Steels Limited (CSSL) with and into itself leverage synergies between the companies and achieve better efficiency. Shareholders will receive one share of JSW Steel for every 21 shares of JISPL and three shares of JSW Steel for every two shares of Creixent.

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

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