Morning Outlook 7th November, 2022

NIFTY:

The NIFTY opened at 18053.40 without any gap and started a consolidation process. The index broke on the downside and saw a sharp intraday decline towards 18000 supports. Prices recorded its intraday low at 18017.15 and then started moving on the upside at a mild pace. The index then started a consolidation process and broke it on the higher side. A sharp rally came in the last hour of trading and the NIFTY crossed above 18100 to record its intraday high at 18135.10. Prices have finally closed at 18117.15 with a gain of 64.45 points or 0.36% up. MITAL outperformed today and closed with a handsome gain of 4.21%. Most of the sectoral indices have closed almost on a flat note. FMCG and IT underperformed today. On the weekly timeframe chart, the NIFTY closed higher for the third consecutive week and is now heading towards its lifetime highs at 18604.45. This may also act as a strong resistance. On Monday, we should look for a buying opportunity on a breakout above 18200 or shorting opportunity on a breakdown below 17900. In case of a gap beyond these levels apply the first 15-minute rule. Keep a stop of 80 points and a target of 240 points.

BANK NIFTY:

The BANK NIFTY opened at 41314.8S without much of a gap. The index initially moved up and crossed above 41500. Prices then drifted downwards after recording its intraday high at 41516.20. A sharp decline brought prices to its intraday low at 41051.15 and then prices started a consolidation process. A minor recovery came towards the end of today’s trading session and prices have finally closed at 41292.55 with a loss of just 12 points. PSU BANKS have outperformed today by closing 1.04% higher while PVT BANKS have underperformed today and closed lower by 0.24%. Within the index, in terms of points, SBIN contributed the highest on the upside while HDFC BANK contributed the lowest. We have been tracking a narrow trading range inside 40800 – 41700. This range remained intact so far. A breakout from this range may give us a directional move. Look for a buying opportunity on a breakout above 41700 or a shorting opportunity on a breakdown below 40800. In case of a gap beyond these levels follow the first 15 minutes rule. Keep a stop of 300 points and a target of 1200 points

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Indian benchmark indices ended on positive note in the volatile session on November 4.At Close, the Sensex was up 113.95 points or 0.19% at 60,950.36, and the Nifty was up 64.50 points or 0.36% at 18,117.20. About 1997 shares have advanced, 1356 shares declined, and 129 shares are unchanged.

• Four more initial public offerings (IPOs)—Archean Chemicals Industries Ltd, Five Star Business Finance Ltd, Kaynes Technology India and Inox Green Energy Services Ltd—will hit the markets next week to cumulatively raise around Rs 5,020 crore

• Tata Motors’ passenger vehicle sales have risen for five straight months as it continues to win share from Hyundai and Mahindra & Mahindra Ltd. The maker of Nexon sports utility vehicle is averaging 45,000-50,000 units a month, and is on track to hit 500,000 units in FY23.

• Oil jumped to the highest in more than three weeks as markets rallied over China easing its Covid restrictions.

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

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