Morning Outlook 5th September, 2022

NIFTY:

The NIFTY opened at 17598.40 with a gap up of 56 points. The index initially moved down after recording its intraday high at 17643.85 and filled the gap easily. Prices have moved further on the downside and recorded its intraday low at 17476.45. The index found support there and bounced up. A rally started which brought back prices into positive territory. The rally could not surpass the early morning highs and saw a decline again towards the end of today’s trading session and the index finally closed at 17539.45 almost yesterday’s closing price with a loss of 3.35 points or 0.02% up. FINANCIAL and MEDIA outperformed today and ended with gains of 0.50%. OIL GAS underperformed today and finished with a loss of 1.03% followed by PHARMA, IT, and AUTO. The index is going through a process of consolidation. This is normal as we have seen a sharp surge of more than 2500 points in July and August 2022. On the weekly time frame chart, the index recorded a wide range of weeks. This could result in a narrow and choppy price movement for the coming week. We are also expecting that the index may spend a few weeks within a consolidation. Fresh trades will emerge either on a close above 17700 or on a close below 17400.

BANK NIFTY:

The BANK NIFTY opened at 39422.30 with a gap up of just 77 points. The index recorded its intraday high at 39595.85 just after the open and then moved down sharply for the first 30 minutes of trading. Prices have recorded its intraday low at 39200.45 and then spent the rest of the day moving within these mentioned levels. The index finally closed at 39384.05 with a gain of just 39 points. PVT BANKS have outperformed today and closed with a gain of 0.17%. PSU BANKS have underperformed today and closed with a loss of 0.67%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest. On a weekly time frame, it was a wide range week where prices opened at the lower side and closed near the higher side, and ended with some gains. After such a large range week, we may see a choppy and narrow range week. The short-term trend is sideways but the bias is mildly bullish. As of now, we do not have an adequate setup that could suggest a trade. For the time being, we should step aside and avoid trading the index.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• India’s stock benchmarks closed a volatile session little changed, as gains in capital goods, industrials stocks were offset by losses in energy, oil and gas, metal stocks, ahead of the crucial U.S. jobs report scheduled later in the day. Nifty Realty is the top sectoral gainer while Nifty IT index fell the most this week.

• The Reserve Bank of India is holding consultations with US fintech company FIS and is said to have asked four public sector banks in India to run a pilot Central Bank Digital Currency (CBDC) project ahead of a possible rollout in this financial year. The RBI is working on phased implementation of CBDC in both the wholesale and retail segments, RBI ED Ajay Kumar Choudhary said in July.

• Reserve Bank of India (RBI) Governor Shaktikanta Das said inflation is likely to go down in the coming months in India and the impact of high inflation is past its peak. “Inflation has become a global phenomenon. The globalisation of inflation has happened now,” Das said in an interview with Zee Business on September 2.

• IndusInd Bank has inked a pact with the Asian Development Bank for a partial guarantee programme with an initial outlay of Rs 560 crore for supply chain financing. The bank has entered into a partial guarantee programme with ADB with an initial outlay of USD 70 million (Rs 560 crore), exclusively towards promoting supply chain finance solutions in India, IndusInd Bank said in a release on Friday.

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

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