Morning Outlook 6th May, 2022

NIFTY:

Nifty opened at 16854.75 with a big gap up of 177 points. The index initially moved lower but soon prices turned up and saw a rally of more than 150 points. The index recorded its intraday high at 16945.70 and found strong resistance there. Prices have drifted downwards after that and erased all the gains that came from the gap and a rally. The decline continued for the rest of the day and prices have recorded its intraday low at 16651.85. The index finally closed at 16682.65 wit h a gain of just 5.05 points or 0.03% up. Realty led the bear today by closing 1.62% down followed by the FMCG and PHARMA which ended lower by more than 0.50%. IT outperformed today and ended with a gain of more than 2%.

The short-term trend is down and we should look for a shorting opportunity tomorrow. The idea is to sell short below 16600.In case of a gap down below 16600 apply the first 15-minute rule. That means sell short below the low recorded in the first 15 minutes of trading. But if prices went up tomorrow then we should look for a buying opportunity on a breakout above 16900. For both the cases, keep a stop of 110 points and a target of 240 points.

BANK NIFTY:

Bank Nifty opened 35705.35 wit h a big gap up of 388 points. The index continued its bullish momentum from the open and rallied higher to record its intraday high at 35935.85. Prices have found strong resistance there and then turned down. A sharp decline erases all the gain and prices have moved further on the downside to record its intraday low at 35133.80.The index finally closed at 35160.10 wit h a loss of 157 points.

PVT and PSU BANKS both have performed almost the same today, saw a sharp intraday decline, and closed lower by 0.40% & 0.71% respectively. Within the index, in terms of points,KOTAK BANK contributed the highest while INDUSIND BANK contributed the lowest.

But if the index moves higher then we should be looking for a buying also on a breakout above 35700.For both the cases, keep a stop of 300 points and a target of 800 points from your entry price

TECHNICAL PICKS

 

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Tata Motors will commence deliveries of India’s first electric cargo four-wheeler EV Ace from the September quarter as it seeks to tap into the burgeoning demand for sustainable last mile delivery vehicles by e-commerce companies. The prices of the electrified version of the Ace, the sub-one tonne offering launched in 2005, will be revealed at the time of the commercial launch.
• Dabur India Ltd on Thursday reported a 21.98 per cent decline in consolidated net profit at Rs 294.34 crore for the fourth quarter ended March 2022. The company had posted a net profit of Rs 377.29 crore in the January-March period a year ago, Dabur India said in a BSE filing. Its revenue from operations rose 7.74 per cent to Rs 2,517.81 crore during the quarter under review, as against Rs 2,336.79 crore in the year-ago period.
• L&T on Thursday said its construction arm has won a large contract for the bullet train project. L&T Construction has bagged the project from National High-Speed Rail Corporation Ltd (NHSRCL). “The railways business of L&T Construction has secured acontract from NHSRCL to construct 116 route km of High-Speed ballastless track works for Mumbai-Ahmedabad High-Speed Rail (MAHSR) project, popularly referred to as the bullet train project,” the company said in a statement.
• Tata Power Solar Systems on Thursday said it has won India’s largest solar engineering procurement and construction (EPC) order for 1 GW project worth Rs 5,500 crore from state-owned SJVN Ltd. According to a company statement, this EPC order has been designed keeping in mind the innovative use of ‘Make in India’ cells and modules.

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

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