Morning Outlook 31st May, 2022

NIFTY:

Nifty opened at 16527.90 with a gap up of 175 points. The index recorded its intraday low at 16506.15 in its initial trades and moved further on the upside. Prices have added another 150 points from the opening tick till afternoon and the index recorded its intraday high at 16695.50.Prices face strong resistance there. The index spent the rest of t he day moving narrow and sideways and finally closed at 16661.40 near its day’s high with a gain of 308.95 points or 1.89%up.Allthe sectoral indices have closed higher today. REALT,IT and MEDIA outperformed today and ended with a gain of more than 3%.The PHARMA underperformed today.

Resistance should emerge around 16800 – 16900 zones. Volatility has also started cooling off as the volatility index INOIA VIX has dipped below 20 today Traders should look for a buying opportunity on any intraday dip as the index has been moving higher over the last three days and is already up by more than 600 points.

BANK NIFTY:

Bank Nifty opened at 35958.80 with a big gap up of 341 points. The index initially consolidated, moved further on the upside, and recorded its intraday high at 36083.70. Prices then moved down at a slower pace and recorded its intraday low at 35748.45. The index again consolidated in the last hour of trading and finally closed at 35832.05 with a gain of 215 points. PSU BANKS have outperformed today, saw a sharp intraday rally, and ended higher by 3.21%.PVT BANKS have also moved up today and closed higher by 0.80%.Withinthe index, in terms of points, FEDERAL BANK contributed the highest on the upside while KOTAK BANK contributed the lowest.

Moreover the intraday range was also very narrow today, as the index has moved within a range of just 335 points and recorded a narrow range day. A pattern of BuIiish Head & Shoulder on the daily timeframe 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

• Sun Pharma on Monday reported a surprise consolidated net loss of Rs 2,277 crore for the quarter ending March 31, 2022. It reported consolidated net profit of Rs 848 crore in the year-ago period. The company reported one-time exceptional loss of Rs 3,936 crore in Q4FY22 due to Taro litigation settlement. Sun Pharma’s consolidated revenue rose 10% to Rs 9,446 crore as against Rs 8,523 crore in Q4FY21.

• Jubilant Foodworks Ltd (JFL) on Monday reported an 8.8 per cent decline in its consolidated net profit at Rs 96 crore in the fourth quarter ended March 2022, impacted by higher expenses. The company had posted a consolidated net profit of Rs 105.3 crore in the same period previous fiscal, Jubilant Foodworks Ltd (JFL) said in a regulatory filing. Consolidated revenue from operations during the quarter under review stood at Rs 1,175.97 crore as against Rs 1,037.86 crore in the year-ago period, it added.

• Home-grown auto major Mahindra & Mahindra (M&M) on Monday said it is planning to launch the fully electric version of its XUV 300 SUV in the market in the first quarter of next year. The company also announced that it will unveil its electric vehicle business strategy, ‘Born Electric Vision’ of EV concept in August this year.

• India’s largest steel producer, JSW Steel Ltd, will continue to supply products to its buyers in Europe without passing on any increase in costs despite New Delhi’s decision to impose an export tax, a senior company official said on Monday. India recently imposed an export tax of 15% on some steel products from zero, at a time the country’s steelmakers were looking to make up for tepid local demand by increasing market share in Europe, where the Ukraine conflict has hit supplies.

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

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