Morning Outlook 6th July, 2022

NIFTY:

Nifty opened at 15909.15 with a gap up of 74 points. The index continued its bullish momentum and rallied further towards the resistance around the 16000 level. Prices then consolidated there for almost the whole afternoon and eventually broke on the downside after recording its intraday high at 16025.75.Prices then saw a sharp downside move. The index erases all the gains that came during the day including the gap and recorded its intraday low at 15785.45. Prices have finally closed at 15810.85 with a loss of just 24.50 points or 0.15% down. METAL, PHARMA, and OIL GAS outperformed today and closed with some gains. BANK, FINANCIAL, IT, and AUTO led the bears today and ended wit h a loss.

Level 15800 is somehow acting as a magnet that pulled the index toward this level. We should now wait for a clear sign of the next likely move. Both the momentums have aligned on the upside suggests higher levels are ahead. the short-term trend is sideways now. Avoid trading the index.

BANK NIFTY:

Bank Nifty opened at 34084.70 with a gap up of 120 points. The index moved further on the upside and stayed above 34000 till the afternoon. Prices then consolidated and eventually broke down after recording its intraday high at 34361.05. A sharp decline erases a 11 the gains that came during the day and prices have recorded its intraday low at 33757. The index finally closed at 33769.40 with a loss of 195 points. PVT BANKS have underperformed today and ended wit h a loss of nearly half percent. PSU BANKS have ended on a flat note today. Within the index, in terms of points, BANDHAN BANK contributed the highest on the upside while HDFC BANK contributed the lowest.

index where prices have moved higher in the first half while seeing a sharp down move in t he second half and ended lower. The short-term trend is sideways. We should avoid taking fresh trades.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Witnessing a robust demand for its electric scooter Chetak, Bajaj Auto plans to scale up the sales infrastructure for the model to 75 locations across the country in the current fiscal. The Pune-based firm had brought back its iconic Chetak scooter in electric avatar in October 2019. “Seeing the enthusiastic demand for this iconic model, the company has increased the touchpoints to 20 locations in FY 2022. This is expected to grow to 75 in FY 2023,” the company said in its Annual Report for 2021-22.
• Britannia Industries’ shareholders have voted against a resolution to authorise the board to make investments, give loans and provide guarantees of up to Rs 5,000 crore in the AGM concluded last week. The special resolution for approval to increase limits for making investments, loans, Special guarantees and security was “not Passed with requisite majority,” said a regulatory filing from Britannia Industries on June 29, 2022.
• Rising cost pressure brought on by volatile input prices, and withdrawal of pandemic-induced relief measures may further increase default rates especially among sub-investment-grade firms, or those with a rating of “BB” and below, according to CRISIL Ratings.
• The rupee fell by 41 paise to close at a fresh lifetime low of 79.36 (provisional) against the US dollar on Tuesday amid a strong greenback overseas and unrelenting foreign fund outflows. At the interbank forex market, the local unit opened at 79.04 against the greenback and witnessed an intra-day high of 79.02 and a low of 79.38.

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

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