Morning Outlook 4th August, 2022

NIFTY:

Today, the NIFTY opened at 17349.25 without much of a gap. The index initially moved down and goes below 17300. Prices have found support around 17250 and recorded their intraday low at 17225.85. The index consolidated around 17250 for three hours and then breaks on the upside. A sharp rally came which took prices above 17400 and the index recorded its intraday high at 17407.50. The NIFTY finally dosed at 17388.15 near its day high with a gain of 42.70 points or 0.25% up. IT outperformed today and dosed with a gain of 1.35%. PHARMA and REAL1Y underperformed today and ended with a loss of over half percent. BANK, FINANCIAL, and OIL GAS ended with minor changes. We have identified a resistance zone inside 17300 -17400. The index is moving within this zone for the past three trading days, finding it difficult to cross above and locked itself in a narrow range. A breakout from this range may give us a directional move. We should take a trade in the direction of a breakout. The long-term trend is up while the long-term momentum has been moving within the strength zone for the past few trading days. The Intermediate trend is up while the intermediate momentum has reached within the strength zone last week. The trend and momentums have aligned on the upside, suggesting higher levels are ahead.

BANK NIFTY:

Today, the BANK NIFTY opened at 37954.55 with a gap of 78 points. The index recorded its intraday high at 38068.60, moved down, fill the gap, and fall further on the downside. Prices have found support around 37700, consolidated there, and bounced up after recording their intraday low at 37692.95. The index rammed erases all the losses, and came dose to its opening tick. Prices have finally closed at 37999.70 with a gain of 123 points. PSU and PVT BANKS both indices have moved down and closed with a loss of 0.53% & 0.16% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. The index continued dosing higher for six straight sessions. The short-term trend is up as prices are making a bullish pattern of higher highs and higher lows. We have mentioned resistance may appear around 38000 and the index is trading almost at its resistance level and finding it difficult to cross above for the past three trading days. 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

• Vodafone Idea (Vi) net loss has remained flat year-on-year (YoY) at Rs 7,296 crore in Q1 of FY23 despite 13.7 per cent growth in revenue. In the same period last year, the company had posted a net loss of Rs 7,319 crore. However, on a sequential basis, the net loss widened by 10.6 per cent. In the fourth quarter of FY22, Vi had posted a net loss of Rs 6,563 crore.

• Multiplex chain operator Inox Leisure Ltd on Wednesday reported a consolidated net profit of Rs 57.09 crore for the quarter ended June, led by rising footfalls at cinema halls. The company had posted a net loss of Rs 122.28 crore in the April-June period a year ago, said Inox Leisure in a BSE filing.

• Recently-listed Life Insurance Corporation (LIC) has broken into the latest Fortune Global 500 list, while Reliance Industries has jumped 51 places. The nation’s biggest life insurer with revenue of USD 97.26 billion and a profit of USD 553.8 million, was ranked 98th on the just released Fortune 500 list. Reliance Industries jumped 51 places to 104 on the 2022 list.

• Leading stock exchange BSE on Wednesday reported a 23 per cent decline in net profit to Rs 40 crore for three months ended June 2022. In comparison, the exchange had posted a net profit of Rs 51.9 crore in the year-ago period, BSE said in a statement. Total revenues grew by 6.4 per cent to Rs 197.7 crores for the period under review from Rs 185.7 crore in the corresponding quarter previous year.

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

BOARD MEETINGS

CORPORATE ACTION

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL