Morning Outlook 9th September, 2022

NIFTY:

The NIFTY opened at 17748 with a gap up of 124 points. The index initially went up and then started a process of consolidation which eventually broke on the downside. Prices have seen a minor decline, found intraday support around 17700, and bounced up. This time the index saw a steady up move and recorded its intraday high at 17807.65. The index again consolidated in the last 30 minutes of trading and finally dosed at 17798.75 near its daily highs with a gain of 174.35 points or 0.99% up. BANK outperformed today and led the bulls by dosing 1.91% higher followed by FINANCIAL which ended 1.48% up. METAL, MEDIA, and REAL1Y underperformed today and closed with a loss. We have been following a wide trading range with support around 17200 and resistance around 17700. The index broke decisively and closed well above 17700 resistance. We may see an upside move towards a psychological resistance of 18000. Support should now emerge around 17400 – 17500 zones. The INDIA VIX, a benchmark index for volatility, is now moving around 18 suggesting volatility is normal and favours the bulls. The short-term trend is up and we should now look for a buying opportunity on a dip or intraday consolidation breakout. For carry, forward trades wait for an adequate setup to emerge.

BANK NIFTY:

The BANK NIFTY opened at 39763.90 with a big gap up of 305 points. The index recorded its intraday low at 39706.40 within the first 10 minutes of trading and continued rising. Prices have seen minor dips in between which finds support quickly and the index rises above 40200, Prices have recorded its intraday high at 40265.75 and finally closed at 40238.75 with a gain of 780 points. PSU and PVT BANKS both indices have performed well today, saw a sharp intraday rally, and closed with a gain of 2.51% & 1.88% respectively. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while FEDERAL BANK contributed the lowest. BANK NIFTY opened with a big gap up and build on the gains as the day progressed. It was a trend day today on the upside where prices have recorded its intraday low near the opening tick and intraday high near the closing tick. We have mentioned a trading range inside the 38000 – 39800 zone. The range has broken decisively on the upside and prices have closed well above the 40000 level a psychological resistance. The short-term trend is up. We should now look for a buying opportunity as far as prices are trading above the 39800 level.

TECHNICAL PICKS

DERIVATIVE PICKS

 

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• On Thursday, benchmark indices ended the session in green with Sensex jumping over 650 points or 1.12% at 59,688.22. Nifty added 174 points or 0.199% and ended the day at 17,798.40. Among the sectors, financials led the rally with Nifty Bank ending above 40,200. While Nifty Metal shed about a percent, Nifty Pharma too ended the day in red. Buying was also seen in IT, autos and infrastructure stocks.

• Shares of Mahindra & Mahindra Ltd has overtaken Tata Motors Ltd in terms of market capitalisation to become the second most valued auto company in India. The market capitalisation for M&M stood at Rs 1.64 trillion with its shares touching an all time high of Rs 1,331 apiece on the BSE on Thursday. M&M has gained 57% so far this year.

• India says Russian oil now accounts for 12% of its overall purchases of the commodity, with the ratio surging six-fold in the past few months, as Asia’s third-largest economy seeks to slow inflation back to target. “We speedily ramped up Russian oil imports from 2% to 12%,” Finance Minster Nirmala Sitharaman said at event in New Delhi on Thursday.

• Gautam Adani-led Adani Group’s open offer for 26% of shares in New Delhi Television Ltd. is set to open on Oct. 17. The open offer made by Vishvapradhan Commercial Pvt. Ltd., along with AMG Media Networks Ltd. and Adani Enterprises Ltd., will seek to acquire 1.67 crore shares of NDTV at a price of Rs 294 a share, according to an exchange filing on Thursday.

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

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