Morning Outlook 8th April, 2022

NIFTY:

Nifty opened at 17723.30 with a gap down of 84 points. The index continued its bearish momentum and continued moving downwards. Support came around 17650 – 1680 and prices bounced up. A sharp rally takes place of about 120 points in the afternoon and prices have recorded its intraday high at 17787.50 and then face strong resistance there. A decline then started that broke the early morning low and brought prices to its intraday low at 17623.70. The index finally closed at 17639.55 with a loss of 168.10 points or 0.94% down. The PHARMA outperformed today and ended with a gain of nearly half percent. OIL GAS, IT,MEDIA, and METAL underperformed today and ended with a loss of more than 1%. After a short-term correction, it is currently trading near the important support level around 17600. If NIFTY holds 17600 support then it is very likely that we may see a trading range somewhere between 17600 -18100 zones. Holding of 17600 will suggest us a buying opportunity. But if it breaks then the next support could emerge around 17000. This will also suggest us taking short trade only on an intraday basis. The summary here is to wait for one or two days more and then we will plan our trades accordingly.

BANK NIFTY:

BANK NIFTY opened at 37421.75 wit h a gap down of 167 points. The index recorded its intraday low at 37346.80 and then started a process of consolidation. Prices have seen a breakout and rallied higher to record its intraday high at 37975.90. The index again moved down and finally closed at 37557.35 without much of a change when compared to yesterday’s closing price. PSU and PVT BANKS both have performed almost same today, saw a minor decline and ended with a loss of 0.36%& 0.23% respectively. Within the index, in terms of points, AXIS BANK contributed the highest while ICICI BANK contributed the lowest. Strong resistance is visible around 39000 while support should emerge around 37000. As mentioned yesterday, “any dip towards the support level is a buying opportunity if index holds this level.

TECHNICAL PICKS

NEWS UPDATES

• After two years of lull, India’s sugar consumption is set to hit record highs in the current summer season as demand from bulk consumers such as cold drink and ice cream-makers rises after the lifting of COVID-19 restrictions, industry officials said. India’s sugar consumption in the 2021/22 marketing year that ends on Sept. 30 is set to rise by nearly 3% from a year ago to an all-time high of 27.2 million tonnes, according to the Indian Sugar Mills Association (ISMA).
• Tata Motors on Thursday said it has bagged an order for 1,300 commercial vehicles from VRL Logistics. The order comprises medium and heavy commercial vehicle and intermediate & light commercial vehicle range, suited for logistics operations of VRL Logistics, the Mumbai-based automaker said in a statement. The vehicles were selected basis the superior drivability, high fuel efficiency and low total cost of ownership, which will enable VRL Logistics to increase its fleet efficiency.
• Bank of Maharashtra on Thursday announced the execution of a share purchase to divest its entire stake of 4% in India SME Asset Reconstruction Company (ISARC). The bank will divest its entire stake in ISARC for a consideration of ₹3.92 crore. The transaction is expected to close by December 2022-end.
• With Indian IT services companies are set to announce their fiscal fourth quarter earnings (Q4FY22) beginning next week, investors will keep an eye on both the numbers and trends. As per sector analysts, demand outlook for Indian IT services companies remains robust on the back of strong tailwinds for the industry following digital and cloud transformation initiatives with enterprise clients.

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

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