Morning Outlook 8th September, 2022

NIFTY:

The NIFTY opened at 17519.40 with a gap down of 136 points. The index initially consolidated, found strong support around 17550, and bounced up after recording its intraday low at 17484.30. Prices have rallied sharply and attempted to fill the gap but failed to do so. The index faced strong resistance around 17650 and started a process of consolidation there. The index recorded its intraday high at 17650.75 and finally closed at 17624.40 near its daily highs with a loss of just 31.20 points or 0.18% down. MEDIA outperformed today and dosed with a gain of 1.46% followed by PHARMA which ended with 0.78% gains. AUTO underperformed today and ended with a loss of 1.15% followed by BANK which ended with a loss of 0.53%. We have been following a wide trading range with support around 17200 and resistance around 17700. An up move from 17200 support has faced strong resistance around 17700. The INDIA VIX, a benchmark index for volatility, is still moving within the 19 – 20 range which is moderately high. For normal volatility, it needs to come down below 18. The index is going through a process of consolidation. 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 39337.75 with a big gap down of 336 points. The index initially moved up but fizzled out quickly and turned down. A sharp dip brought prices to its intraday low at 39258.25. Prices then moved up sharply and then went into a process of consolidation. The index recorded its intraday high at 39572.05 and finally closed at 39458.70 with a loss of 215 points. PVT BANKS have underperformed today and closed with a loss of 0.62%. PSU BANKS have also moved down today, ending with a loss of just 0.17%. Within the index, in terms of points, AXIS BANK contributed the highest on the upside while ICICIBANK contributed the lowest. We have mentioned a trading range inside the 38000 – 39800 zone. The range remained intact so far. Prices have faced resistance around 39800 and turned down. The short-term trend is sideways. Fresh trading opportunities will emerge if the index breaks and dose 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

• India’s stock benchmarks ended down for the second day, led by fall in auto and banking stocks. The Sensex lost 0.28% or 168 points to end at 59,028.91 after having shed nearly 475 points to an intraday low of 58,722.89 on the BSE. The Nifty 50 declined 0.18% to close at 17,624.40 on the NSE. Among Nifty 50 constituents, 26 stocks rose while 24 fell.

• The Union Cabinet on Wednesday approved the lowering of the Railway Land Licensing Fee—from 6% to 1.5%—to aid disinvestment of the state-owned Container Corp. of India Ltd. Officials from the Department of Investment and Public Asset Management, NITI Aayog, Concor, and the Indian Railways had met in May to provide concluding inputs for the policy to the cabinet.

• Tamilnad Mercantile Bank Ltd.’s Rs 832-crore initial public offering continued to garner investor interest on the final day of its subscription. It was subscribed by 2.77 times on 7th Sept. as of 4:00 p.m. Institutional Investors : 1.62 times, Non – institutional investors : 2.92 times, Retail Investors : 6.02 times.

• Indian non-life insurers’ revenue rose to a new high for the second straight month in August, led by growth in specialised state-run non-life insurers. The gross premium underwritten for non-life insurers rose 5% over the previous month to Rs 24,472 crore in August, according to the provisional data released by the General Insurance Council. Revenue also increased 12% year-on-year.

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

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