Morning Outlook 3rd June, 2022

NIFTY:

Nifty opened at 16481.65 With a gap down of 41 points. The index moved further on the downside and recorded its intraday low at16443.05 within the first five minutes of trading. Prices have bounced up from there and started moving higher. The index recovered very quickly, filled the gap, and then moved further on the upside record its intraday high at 16646.40.The index finally closed at 16628 near its day high with a gain of 105.25 points or 0.64% up. BANK, FINANCIAL, and AUTO underperformed today and closed with loss. OIL GAS outperformed today by ending at 2.28% higher followed by the IT which ended nearly 2% up.

The short-term trend is up so we should only look for a buying opportunity. We are recommending the same trade tomorrow also. Buy on a dip at or below 16400.However, if the index moves up tomorrow then, we should look for a buying opportunity on a breakout above 16700. Keep a stop of 110 points and a target of 240 points.

BANK NIFTY:

Bank Nifty opened at 35470.95 With a gap down of 209 points. The index falls further on the downside and recorded its intraday low at 35385 and then bounced up. Prices have moved in a sideways manner, recorded its intraday high at 35676.20, and finally closed at 35610.60 with a loss of 69 points. PSU BANKS have outperformed today and ended with a gain of 1.02%.PVT BANKS have underperformed today and ended on a flat note. Within the index, in terms of points, AX IS BANK contributed the highest on the upside while HDFC BANK contributed the lowest.

Since the short-term trend is up so we may see a sharp move preferably on the upside. We are recommending the same trade for tomorrow also. It was a narrow range day today where the index moved with a range of just 291points. Further we Look to buy on a dip at or below 34500 or buy on a breakout above 36000 with a stop of 300 points and a target of 800 points from your entry price.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Coal India, the world’s largest coal miner by output, will issue a short-term and a medium-term tender next week to import coal for utilities, two senior officials at the company said, as shortages raise concerns about renewed power outages. The state-run miner, which has little experience in importing coal, was asked to place orders for shipments from overseas by the power ministry last week as utilities suggested multiple tenders would lead to confusion and sought centralised procurement through Coal India.

• UltraTech, India’s largest cement maker, on Thursday announced a new capital expenditure (capex) plan of Rs 12,886 crore, responding to competition intensifying in the sector. The expenditure would increase capacity by 22.6 million tonnes per annum (mtpa) through a mix of brownfield and greenfield projects. This would entail setting up integrated and grinding units as well as bulk terminals across the country, UltraTech said about its board decision, with commercial production from these units going on stream in a phased manner by financial year 2024-25 (FY25).

• Oil and Natural Gas Corporation (ONGC), citing possibility of crude oil fields in Buxar and Samastipur districts of Bihar, has applied for the petroleum exploration license before the state government.

• ITC Infotech on Thursday said it has paid an amount of USD 33 million (around Rs 256 crore) to PTC as part of an agreement to acquire a substantial portion of the American company’s product lifecycle management implementation services.

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

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