Morning Outlook 5th August, 2022

NIFTY:

Today, the NIFTY opened at 17463 with a gap of 75 points. The index initially moved sideways for about an hour and then broke on the downside after recording its intraday high at 17490.70. Prices have moved down, filled the gap, and then moved even more sharply between 11:00 AM to 11:45 AM and moved down below 17200. The index recorded its intraday low at 17161.25 and then bounced up. Prices have seen a modest rally afterward and recovered almost all the losses. The index finally closed at 17382 near yesterday’s closing price with a loss of just 6.15 points or 0.4% down. PHARMA outperformed today and dosed with a gain of 2.37% followed by IT and METAL which ended with a gain of more than 1%. REAL1Y underperformed today and ended with a loss of 1.14%. The index witnessed a steep decline in the first half of the session however, in the second half, it managed some recovery. The short-term trend is still up and the NIFTY is facing strong resistance around the 17300 – 17400 zone. Support should emerge around 17000. We should avoid trading the index as the RBI policy meet outcome is scheduled tomorrow so the volatility will be high.

BANK NIFTY:

Today, the BANK NIFTY opened at 38111.05 with a gap of 112 points. The index initially consolidated, record its intraday high at 38231.85, and then went down. Prices have filled the gap and then saw a sharp decline before lunch. The index recorded its intraday low at 37249.50 and then started moving higher. Prices have trimmed some losses and finally closed at 37687.95 with a loss of 312 points. PSU BANKS have seen a sharp intraday decline and dosed lower by 1.75%. PVT BANKS have also modern and dosed with a loss of 0.68%. Within the index, in terms of points, AU BANK contributed the highest on the upside while SBIN contributed the lowest. Again, it was a volatile day for the BANK Index, but the intraday range was wide by almost 1000 points and prices ended lower, breaking its six days of higher closing streak. The short-term trend is up as prices are making bullish patterns of higher highs and higher lows. However, the index is finding strong resistance around the 38000 level from the past few trading days. Tomorrow is a news event day as the outcome of MPC’s monetary policy meet is scheduled. The volatility may be high tomorrow as well. We should avoid trading the index tomorrow.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Britannia Industries on Thursday said its consolidated net profit fell 13.24 per cent to Rs 335.74 crore in the April-June quarter of FY23 due to impact of inflationary headwinds. The company had posted a net profit of Rs 387.01 crore in the April-June quarter a year ago, Britannia Industries said in a BSE filing.

• Adani Enterprises on Thursday signed an agreement with the Israel Innovation Authority (IIA), the public-funded agency overseeing that country’s innovation policy, for cooperation in technology.

• Vehicle registrations in July dipped 8 per cent year-on-year as heavy rains in parts of the country dissuaded new purchases, said the Federation of Automobile Dealers Associations (FADA) on Thursday. Total registrations (in all segments of vehicles) in July dropped to 14, 36,927 units compared to 15, 59,106 units in the corresponding month last year.

• Indian government bond yields dropped on Thursday, with the 10-year benchmark yield down nine basis points after a media report quoting unnamed banking sources said the Reserve Bank of India(RBI) might pause and be guided by data after Friday’s policy decision.

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