Morning Outlook 6th April, 2022

NIFTY

Nifty opened at 18080.60 with a gap up of just 27 points. The index could not continue its bullish momentum from yesterday and started drifting downwards. Prices have seen a down move of more than 100 points and came close to 17950. The index bounced up, recovered all the losses that came during the day, and recorded its intraday high at 18095.45. The NIFTY could not sustain there for long-ago in moved down, this time with more intensity, and recorded its intraday low at 17921.55 and finally closed at 17957.40 with a loss of 96 points or 0.53% down. We have seen some mixed performance on the sectoral front. AUTO,FMCG outperformed today while BANK, FINANCIAL underperformed today.IT, PHARMA ended one a flat note.

The last two days of high around 18100 should now act as a resistance. A strong support zone is visible around the 17600 – 17800 range. The current correction should find support within this zone if the index continues its bullish momentum after the dip. Hence buying opportunity will emerge either on a close above 18100 or holding of 17600 – 17800 support zone. As mentioned yesterday, “The index has gained more than 6% in the last six trading days. After such a sharp move price tend to move narrow or see a correction .

BANK NIFTY:

Bank Nifty opened at 38731.30 wit h a gap up of 131 points. The index recorded its intraday high at 38759.25 a few ticks above the opening tick and moved down. Prices finds support around 38100, turned up but soon the rally fizzled out. A sharp decline brought prices to its intraday low at37935.95 and the index finally closed at 37964.45 with a loss of 636 points. PVT BANKS have underperformed today and ended wit h a loss of 1.53%. PSU BANKS have performed well today and closed wit h a gain of 0.47%. Within the index, in terms of points, PNB contributed the highest while HDFC BANK contributed the lowest

The short-term trend is up and prices have rallied almost 3700 points (more than 10%) from its swing lows to its swing highs. After such a sharp move price tend to consolidate or correct. We should now wait for the one and then we will plan our trade accordingly.

TECHNICAL PICKS

COMPANY NAME	CMP	B/S	RATIONALE+
POLYCAB	2654	BUY	The stock is on the verge of giving the breakout on the intraday as well as the daily chart. The stock can be bought  with a stop loss of 2630 and for the target of 2700
SBICARD	839	SELL	The  immediate trend of the script is bearish. There is a negative  cross over of moving averages  as well as of the indicators therefore  it can be sell below 838 with a stop loss of 845 and target  of 825.

NEWS UPDATES

• HDFC Tata Power Solar has commissioned a 160 MW AC solar project at Jetstar in Rajasthan. Around 6,75,000 monocrystalline PV modules were used in this installation and it will produce 387 million units of energy per year, according to a statement. Tata Power Solar has commissioned a 160 MW AC solar project at Jetstar in Rajasthan. Around 6,75,000 monocrystalline PV modules were used in this installation and it will produce 387 million units of energy per year, according to a statement.

• Larsen & Toubro (L&T) on Tuesday said its transportation infrastructure business has secured various orders from prestigious clients. The company did not provide the value of the contracts, but said the orders fall under the “significant” category, which ranges between Rs 1,000 crore and Rs 2,500 crore according to the classification of contracts.

• Adani Power has received Rs 3,000 crore dues with interest from the state-owned power distribution companies of Rajasthan as compensation for higher fuel costs. Shares of Adani Power hit 10% upper circuit on the Bombay Stock Exchange on Tuesday, a 52-week high at Rs 233 apiece.

• India is considering seeking around 500 billion rupees ($6.6 billion) next month from the initial public offering of state-owned Life Insurance Corp., people with knowledge of the matter said. The government is discussing selling as much as a 7% stake in LIC through the listing.

• Air conditioner companies are yet again increasing the prices of their products by around 3-4 per cent this summer, after the previous hike of around 5-8 per cent in January 2022. The industry is still expecting growth in sales on the back of pent-up demand and soaring temperatures.

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

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