Morning Outlook 7th September, 2022

NIFTY:

The NIFTY opened at 17695.70 with a gap up of just 30 points. The index initially moved up sharply for the first 10 minutes of trading but found resistance there and moved down. Prices have recorded its intraday high at 17764.65, moved down, and erased all the gains. The decline continued and brought prices to its intraday low at 17587.65. A sharp recovery came afterwards. The index again moved down towards the end of today’s trading session and finally closed at 17655.60 near yesterday’s closing price with a loss of just 10.20 points or 0.06% down. METAL and Oil GAS outperformed today led the bulls and closed with a gain of over 1%.FMCG led the bears today and ended with a loss of 0.52%  followed by BANK, FINANCIAL, and IT. The index is going through a process of consolidation. A breakout may lead prices to a very strong resistance around 18000. As we have explained, new trades will emerge either on a close above 17700 or below 17400. Till then step aside and avoid trading the index.

BANK NIFTY:

The BANK NIFTY opened at 39892.95 with a gap up of 138 points. The index initially moved up but soon faces resistance and turned down after recording its intraday high at 40073.75. A sharp decline in the next one hour of trading brought prices to its intraday low at 39564.30. The index bounced up a gain and moved into positive territory. Prices again moved down and finally closed at 39673 with a loss of 81 points. PSU BANKS have outperformed today and closed with a gain of 0.51%. PVT BANKS have underperformed today and closed with a loss of 0.47%. Within the index, in terms of points, ICICIBANK contributed the highest on the upside while KOTAK BANK contributed the lowest. BANK NIFTY moved in a narrow range today, saw some sharp intraday moves in both directions, and finally closed lower with minor losses despite breaking above the 40000 levels. We have mentioned a trading range inside the 38000 – 39800 zone. The range remained intact and prices are now trading near the upper range. The short-term trend is sideways but the basis is mildly bullish. Fresh trading opportunities will emerge if the index breaks and close above 39800 resistance or saw a sharp dip towards 38000 support levels. As far as prices are moving within these boundaries, we should shift our focus to intraday only. For the time being, we should step aside and avoid trading the index.

 

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended the session on September 6 on a flat note amid volatility. Sensex was down 48.99 points or 0.08% at 59196.99, and the Nifty shed 10.20 points or 0.06% at 17655.60. About 1745 shares have advanced, 1614 shares declined, and 133 shares are unchanged. Among the sectors, buying was seen in oil & gas, power and metal names while financials, FMCG and IT indices ended in the red. The midcap index added half a percent.

• Shares of DreamFolks Services Ltd. surged on listing on Tuesday after investors piled into its initial public offering. The stock of the Indian airport aggregator platform listed at Rs 505 apiece on BSE, a premium of about 55% to its IPO price of Rs 326 a share. On the National Stock Exchange, DreamFolks’ shares debuted at Rs 508.70, a premium 56%.

• Australia’s central bank delivered its fourth consecutive half-percentage point interest-rate increase and reinforced that it’s not on a predetermined route in its drive to rein in inflation. The Reserve Bank raised the cash rate to 2.35%, the highest level since 2015, from 1.85% at Tuesday’s meeting.

• India has set up a panel to review the pricing formula for locally produced gas to ensure a ”fair price to the end consumer”, according to a government order seen by Reuters, a move aimed at lowering inflation and boosting use of the cleaner fuel. Prime Minister Narendra Modi wants to raise the share of gas in India’s energy mix to 15% by 2030 from 6.2%, helping it progress towards meeting a 2070 net zero carbon-emission goal.

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

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