Morning Outlook 7th May, 2022

NIFTY:

Nifty opened at 16415.55 wit ha big gap down of 267 points. The index initially moved higher but soon prices finds strong resistance and started  drifting downwards. The index recorded its intraday low at 16340.90 and found repeated support around the 17350 level. The index then rose and recorded its intraday high at 16484.20 and then again turned down. Prices keep on recording these alternate swings of up and down for the whole day and finally closed at 16411.25 almost at its opening tick with a loss of 271.40 points or 1.63% down. All the sectoral indices have seen a decline today and closed lower. REALTY ended wit h a loss of more than 3.5% while FINANCIAL, METAL, and IT ended with a loss of more than 2%.

The index recorded a pattern of DOJI today. This pattern will appear when the opening and closing rates are almost the same and indicate confusion amongst the traders. After three days of sharp decline, it is possible that the index may start a process of consolidation or correction soon .As of now, we should avoid trading the index and wait for any adequate trading setup to emerge.

BANK NIFTY:

Bank Nifty opened at wit h a big gap down of 591points. The index first consolidated and then moved down. Prices have record its intraday low at 34353.20 and then bounced up. The rally did not sustain long enough. Prices have kept on moving up and down for the whole day an recorded its intraday high at 34797.95. The index finally closed at 34681.50 wit h a loss of 479 points. PVT BANKS have underperformed today, led the bears, and closed lower by 2.18%. PSU BANKS have also moved down and ended with a loss of 0.52% Within the index, in terms of points, SBIN contributed the highest while HDFC BANK contributed the lowest.

The short-term trend is down and the index closes below 35000. It is possible that we may see a consolidation or correction here in the next week. As of now, we do not have an adequate trading setup that could suggest us a trading opportunity

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Reliance Industries (RIL) on Friday reported a consolidated net profit of Rs 16,203 crore for the quarter ended March 31, 2022 (Q4 FY22), up 22.5 per cent over the year-ago period’s Rs 13,227 crore but slightly short of expectations. A poll of analysts by Bloomberg had pegged net profit at Rs 16,819 crore for Q4. But for the exceptional income of Rs 2,836 crore in the December 2021 quarter, net profit would have been its highest quarterly profit ever.
• Reliance Jio’s net profit jumped 22.9 per cent to Rs 4,313 crore year-on-year (YoY) in the fourth quarter of FY22, thanks to an increase in revenue and data volume. Jio, however, continued to lose subscribers for the third consecutive quarter. Its customer base shrunk 10.9 million to 410.2 million at the end of fourth quarter. The company blamed SIM consolidation for the drop in customer base. It said consolidation was now slowing as the tariff hike impact had been absorbed.
• Burning a bigger hole in common man’s pocket, the price of 14.2-kg domestic LPG cylinder on Saturday was hiked by Rs 50. With the new revision, the LPG cylinder will now retail at Rs 999.50 in Delhi. Earlier in the month, the price of a 19-kg commercial LPG cylinder was increased by Rs 102.50, whereas the 5-kg LPG cylinder is now priced at Rs 655.
• L&T Infotech (LTI) and Mindtree – and the process is expected to complete by the end of the current financial year. The merged entity, to be called LTIMindtree, will have a stronger potential to access large deals and compete with scale players, said top executives of L&T. In terms of revenue and profit, LTIMindtree will be the sixth-largest IT player in the country, after TCS, Infosys, HCL Technologies, Wipro, and Tech Mahindra.

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

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