Morning Outlook 3rd August, 2022

NIFTY:

Today, the NIFTY opened at 17310.15 with a gap down 30 points. The index initially moved up, filled the gap, and then moved down below. Opening tick to record its intraday low at 17215.85. Prices find support there and then begin a process of consolidation till the afternoon. The consolidation broke on the upside after lunch and prices have seen a sharp intraday day rally to record their intraday high that 17390.15. The index found strong resistance there and saw a sharp dip in the last 30 minutes of trading and finally closed at 17345.45 almost yesterday Closing price with a gain of just 5.40 points or 0.03% up. FMCG and AUTO outperformed today and closed with gains of over half percent. REALTY underperformed today and ended with a loss of 1.69%   followed which ended 0.67% down. A pattern of DOJI is now visible on the daily timeframe chart. The pattern appears when the opening and closing tick are almost the same. This pattern indicates confusion amongst traders which should resolve soon. The short-term trend is up and there is no doubt as prices are making a bullish pattern of lower highs and lower lows. Support is now visible at around 17000. While resistance may emerge around the 17300 – 17400 zone. Prices have reached this zone and are finding it difficult to cross above. 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 37767.70 with a gap down of 100 points. The index initially moved up, filled the gap, and then again turned down to record its intraday low at 37632.30. Prices then bounced up and saw a sharp intraday rally to record their intraday high at 38179.85. The index faces resistance there and again moved down in the last 30 minutes of trading to finally close at 37876.30 with a gain of just 9 points. PSU BANKS have significantly outperformed today and closed with a gain of 2.68% PVT BANKS have also moved up today but ended with a gain of just 0.39. Within the indexes in terms of points, SBIN contributed the highest on the upside while HDFC BANK contributed the lowest. As of now, we do not have an adequate setup to trade so we will avoid trading the index. Fresh trade should emerge either after a dip or if the index consolidates for a few trading days and formed a narrow trading range.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Richest Indian Gautam Adani’s group on Tuesday said the Rs 212 crore worth of spectrum it has bought in a millimetre wave band will be used to create a private network to support its businesses and data centres. Adani Data Networks Ltd (ADNL), a unit of Adani Enterprises Ltd, acquired the right to use 400MHz of spectrum in the 26GHz millimetre wave band for 20 years in the auction that concluded on Monday. Adani Group plans to use the airwaves for its data centres as well as the super app it is building to support businesses from electricity distribution to airports, and gas retailing to ports.

• Wheels India on Tuesday reported a 6 per cent rise in net profit at Rs 10.7 crore for the first quarter of Financial Year 2022-23, compared to Rs 10.1 crore same time last year. The wheelmaker’s revenue for the April to June quarter increased to Rs 1057.1 crore, compared to Rs. 675.1 crore in the same quarter last year.

• Godrej Properties on Tuesday said its June quarter consolidated net profit nearly tripled to Rs 45.55 crore while sales bookings jumped five times to Rs 2,520 crore. The Mumbai-based developer announced that company’s Managing Director (MD) and Chief Executive Officer (CEO) Mohit Malhotra has resigned with effect from December 31 this year.

• Consumption of fast-moving consumer goods (FMCG) like packaged foods, beverages, and toiletries revived in the April-June quarter in urban markets but was negative in rural India as people opted for smaller packs, said NielsenIQ on Tuesday. Overall volumes recovered to -0.7 per cent from -4.1 per cent in the quarter ended March. The FMCG market grew 10.9 per cent in the quarter ended June compared to 6 per cent in the January-March quarter.

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

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