Morning Outlook 4th May, 2022

NIFTY:

Nifty opened at 16924.45 wit ha big gap down of 178 points. The index recorded its intraday low at 16917.25 almost at its opening tick and started moving sideways. The index moved very volatile today wit h lots of up and down swings. However he bias was bullish today as dips kept finding support and prices have moved higher for the whole day. Prices have recorded its intraday high at 17092.25 and moved very narrow in the last 30 minutes of trading. The index finally closed at 17069.10 with a loss of 33.45 pints or 0.20% down. The AUTO and IT sectors have led the bears today and ended wit h more than a 1% loss. METAL, BANK, and Financial have led the bulls today and ended with gains.

The short-term trend is sideways. The volatility index INOIA V IX is moving around 20 levels, suggesting higher volatility. The index needs to fall to around 15-18 levels for stability in the market As far as prices are range-bound, we should not indulge ourselves in trading. Gaps are random and that could result in a loss. As of now, we should avoid trading the index.

BANK NIFTY:

35627.60 wit h a big gap down of 436 points. The index recorded its intraday low at 36618.20 a few ticks below the opening prices and bounced up almost 400 points within the first five minutes of trading and then went into a narrow trading range. A sharp move came again towards the end of today’s trading session, prices have recorded its intraday high at 36235.25 and the index finally closed at 36138.45 wit h a gain of just75 points. PSU BANKS have underperformed today and closed lower by 0.48%. PVT BANKS have seen an outperformance and ended wit h a gain of 0.46%.Withinthe index, in terms of points, HDFC BANK contributed the highest while KOTAK BANK contributed the lowest.

The short-term trend is still sideways. The index is moving very volatile and random. We should now wait for a decisive breakout. Since the range is relatively narrow so we may see a breakout sooner rather than later. Till then avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• HDFC Ltd on Monday reported standalone net profit of Rs 3,700 crore for the March quarter, up 16 per cent from Rs 3,180 crore a year ago period. The HDFC Ltd board has recommended a dividend for the year ended March 31, 2022 of Rs 30 per equity share. The net interest income (NII) for the March quarter came at Rs 4,601 crore compared to Rs 4,027 crore in the previous year — a growth of 14 per cent.

• State-owned CIL on Monday said coal supply to the power sector rose 15.6 per cent to 49.7 million tonne last month in the wake of high demand of the dry fuel from electricity generating plants and stressed that it is planning to augment its dispatches further, especially to power plants in the coming months. The statement comes at a time when several parts of the country are grappling with power crisis.

• IDBI Bank on Monday posted 35 per cent rise in net profit at Rs 691 crore for the quarter ended March 2022 due to fall in bad loan provisions as NPAs came down. The bank had posted a net profit of Rs 512 crore for the same quarter of 2020-21. Total income during January-March period of 2021-22, however, was lower at Rs 5,444.08 crore from Rs 6,894.86 crore in the year-ago period. The bank’s core interest income during the period was down at Rs 4,599.67 crore as against Rs 5,781.48 crore a year ago.

• Vedanta Aluminium on Monday announced it will source 380 MW of green power on a long-term basis for its smelters. Once online, this project has the potential to reduce the company’s greenhouse gas emissions by 15,00,000 tonnes of CO2 equivalent annually.

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

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