Change the narration: "I am going out tonight," Kaunain said.

Kaunain told she was going out that night.

Kaunain said that she was going out that night.

Kaunain said that she will be going out that night.

None of these

Direct: "I am going out tonight," Kaunain said.

I → she

am going → was going (present continuous → past continuous)

tonight → that night

So,

Indirect: Kaunain said that she was going out that night.