Morning Outlook 8th July, 2022

NIFTY:

Nifty opened at 16113.75 with a gap up of 124 points. The index initially moved lower but soon finds support and bounced up. The index came close to its opening tick. Prices have found resistance there and then again turned down for a brief period. These ups and down continued for almost the whole day in the NIFTY In this process, the index recorded first its intraday low at 16045.95 and then its intraday high at 16150.50.Prices have finally closed at 16132.90 with a gain of 143.10 points or 0.89% up. All the sectoral indices have ended in the green today except FMCG which ended with minor loss. METAL outperformed by ending 3.79% followed by REALTY which ended 2.62% up.

The short-term trend is up now as the index decisively broke above 16000 resistance. We should look for buying only on any dip or intraday consolidation breakout. Support should emerge around 16000 while the resistance is now visible around 16700. We should wait for an adequate pattern to emerge for a fresh Buying opportunity.

BANK NIFTY:

Bank Nifty opened at 34627.40 with a gap up of 272 points. The index initially consolidated and then broke out after recording its intraday low at 34553.10.Prices have seen a sharp rally and then a correction in the afternoon. That correction finds support quickly and then the index again turned up and rallied to record its intraday high at 34965.75. Prices have finally closed at 34935.45 wit h a gain of 580 points. PSU BANKS have significantly outperformed today by ending 3.42% higher. PVT BANKS have also moved up today and closed wit h a gain of 1.78%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside followed by HDFC BANK.

The index broke its resistance around the 34500 – 34600 range today decisively. The short-term trend is now up which was sideways before. We should now look for buying only on any dip or consolidation breakout.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Bharat Heavy Electricals Ltd (BHEL) on Thursday said it has successfully commissioned 100-MW floating Solar photovoltaic plant at NTPC Ramagundam in Telangana. The plant is installed across the natural raw water reservoir, saving valuable land resources, and also conserves water by reducing evaporation, a company statement said.

• Ajmera Realty & Infra India Ltd on Thursday reported an over three-fold jump in its sales bookings to Rs 400 crore for the quarter ended June on better demand. Its sales bookings stood at Rs 111 crore in the year-ago period, the company said in a statement. The carpet area sold by the company stood at 1,57,438 square feet in April-June period of this fiscal as against 61,663 square feet in the year-ago period.

• Tata Power on Thursday issued a clarification saying no officials of Tata Power are involved in the alleged bribery case involving Power Grid Corporation of India. Tata Power spokesperson in a tweet said, ““Tata Power clarifies that no officials of Tata Power are involved in the alleged bribery case involving Power Grid Corporation of India, being investigated by CBI. Some media reports have wrongly mentioned Tata Power’s name in the alleged case.”

• TCS will kick start corporate earnings season this week, and if one were to go by what analysts say the IT major may not disappoint the Street, with a nearly 15 per cent jump in revenues and a 7-11 per cent year-on-year rise in June quarter profit. The demand commentary could be strong, they said, even as margin may take a hit on wage hikes.

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

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