Morning Outlook 9th June, 2022

NIFTY:

Nifty opened at 16474.95 with a gap up of 58 points. The index initially moved lower, filled the gap, and then fall further to record its intraday low at 16293.35.Prices then bounced up very sharply for almost an hour and recovered all the losses that came during the day. The index faces resistance at the higher level and recorded its intraday high at 16514.30. In the afternoon, the index consolidated and eventually broke down and came close to its early morning lows. Prices have finally closed at 16356.25 with a loss of 60.30 points or 0.37% down. REALTY outperformed today and ended with a gain of nearly 2%. OIL GAS underperformed today and ended wit h a loss of nearly 1%. Financial ended on a flat note. The short-term trend is sideways. We have mentioned a strong support zone inside 16350 – 16400 zones. Today prices have ended within this support range. A close below 16350 would change the short-term trend to sideways. It is also possible that the index may finds support here and bounced up. Short-term resistance is visible around 16700 while a strong resistance should emerge around 16900 – 17000 zone.

BANK NIFTY:

Bank Nifty opened at 35165.65 with a gap up of 193 points. The index first moved on the downside, filled the gap, and then bounce up sharply. Prices have recorded its intraday high at 35449.90 and then went into a process of consolidation. The consolidation eventually broke on the downside and prices have moved down to record its intraday low at 34831.75. The index finally closed at 34888.75 wit h a loss of 84 points. PVT BANKS have underperformed today and ended wit h a loss of 0.43%.PSU BANKS have outperformed today and ended wit ha gain of 0.71%. Within the index, in terms of points, SBIN contributed the highest on the upside while ICIC IBANK contributed the lowest.

The short-term trend is sideways as prices have seen a minor dip after a consolidation. Strong support should emerge around 34500 as it was also a breakout point from a range.

TECHNICAL PICKS

DERIVATIVE PICKS

Top Delivery Percentage

UPCOMING ECONOMIC DATA

NEWS UPDATES

• The real estate sector, which is highly dependent on bank financing for both builders and customers, is worried that rising rates will impact post-pandemic recovery and slow down sales. Anuj Puri, chairman of real estate advisory firm Anarock, said the hike was anticipated with inflation edging higher in the aftermath of the Russia-Ukraine war and surging oil prices. “A hike was inevitable, but we are now entering the red zone. Any future hikes will reflect markedly on housing sales,” he warned.

• The RBI has endeavoured to strike the right balance between inflation and growth at this critical juncture, industry experts on Wednesday said after a 50 basis points hike in the key rate by the central bank. Announcing the credit policy, Reserve Bank Governor Shaktikanta Das said that the Indian economy is resilient,though negative global spillovers continue to weigh on the domestic economic growth outlook.

• The Cabinet has increased Minimum Support Price (MSP) for the Kharif Marketing Season 2022-23 on June 8. The approved prices are in accordance with the principle of keeping the MSPs at a level of at least 1.5 times of the all India weighted average cost of production. The highest absolute increase in MSP over the previous year has been recommended for Sesamum (Rs 523/quintal), Moong (Rs 480/quintal), and Sunflower seed (Rs 385/quintal).

• The World Bank has slashed its growth forecast for India for the current financial year to 7.5 percent, a hefty 1.2 percentage points down from its previous forecast of 8.7 percent.

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

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