
Trendlyne Analysis
Indian indices closed in the green with the volatility index, Nifty VIX, falling below 19.5%. European stocks traded higher than Wednesday’s levels amid positive global cues. Major Asian indices closed in the green, tracking the US indices, which closed higher on Wednesday. US stocks rose as investors assessed the minutes from the US Federal Reserve’s June meeting. The minutes suggested the possibility of an “even more restrictive policy” to tame elevated inflation levels. Meanwhile, US job openings dip slightly in May but remained near record levels, indicating resilient labour demand. Brent crude oil futures rose after falling below $100 per barrel on Wednesday amid demand concerns due to recessionary fears.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty Pharma closed higher than Wednesday’s levels. Nifty IT closed in the green, tracking the tech-heavy index, NASDAQ 100, which rose 0.62% on Wednesday.
Nifty 50 closed at 16,132.90 (143.1, 0.9%), BSE Sensexclosed at 54,178.46 (427.5, 0.8%) while the broader Nifty 500closed at 13,765.60 (134.3, 1.0%)
Market breadth is surging up. Of the 1,879 stocks traded today, 1,316 were gainers and 516 were losers.
Procter & Gamble Health, Indoco Remedies, Blue Star, and TCNS Clothing Co.are trading with higher volumesas compared to Wednesday.
Titan Company sees a long build-up in its July 28 future series as its open interest rises 1.1% with put to call ratio of 0.9.
Infosys beats Wipro in YoY profit growth, FII and MF holding, return on equity and return on capital employed, but lags in QoQ profit and revenue growth, promoter holding and broker average target upside.
Stocks like V Mart Retail, Wockhardt, Vedanta, Laxmi Organic Industries, and IDBI Bank are in the oversold zone according to the technical indicator relative strength index or RSI.
Phoenix Mills rises to a new all-time highof Rs 1,268.5. The stock is rising for the last two consecutive sessions.
ICICI Securities maintains its ‘Buy’ rating on Macrotech Developers with a target price of Rs 1,348, indicating an upside of 23.2%. The brokerage remains positive on the company’s prospects due to its robust operating cash flows, lower interest costs on debt reduction, and new launches. It expects the company’s net profit to grow at a CAGR of 36.4% over FY22-24.
Tyre stocks like MRF, Apollo Tyres, Ceat, JK Tyre & Industries, TVS Srichakra, among others are up by more than 1.5% in trade amid fall in global crude oil prices.
Kalyan Jewellers rises after its reports a 105% YoY growth in revenue in Q1FY23. The revenues increased because of a shift in demand to the organized segment from the unorganized segment, the company said. Gross margins also improved YoY because of a better product mix, and an increase in the share of business from the non-south markets. Its online jewellery platform, Candere, sees an 80% YoY increase in revenue in Q1FY23.
Escorts Kubota rises as the company will hike prices across all tractor models from Monday. This is to offset the rise in input costs due to a spike in commodity prices.
General insurance stocks rise as the general insurance industry’s overall June gross direct premium underwritten rises 21% YoY, according to the General Insurance Council. In Q1FY23 the industry’s gross direct premium underwritten rises 23% YoY. ICICI Lombard General Insurance’s June gross direct premium underwritten rises 53.8% YoY to Rs 1,588.7 crore. Its Q1FY23 gross direct premium underwritten rises 43.9% YoY to Rs 5,370.3 crore and its market share rises by 143 bps YoY to 9.86%. Star Health’s June gross direct premium underwritten rises 10.3% YoY to Rs 949.7 crore. Its Q1FY23 gross direct premium underwritten rises 12.9% YoY to Rs 2,466.1 crore and its market share falls by 40 bps YoY to 4.53%.
Bajaj Finance is falling as brokerage Macquarie initiates coverage on the stock with an ‘Underperform’ rating and a target price of Rs 4,500, indicating a downside of 20.1%. The brokerage believes the company has a limited runway for growth due to its weak presence in the online consumer financing segment, according to reports. It believes the company will have a hard time penetrating the online space due to stiff competition from existing companies.
Auto stocks like Mahindra & Mahindra, Tata Motors, Bajaj Auto, Eicher Motors, Balkrishna Industries, Tube Investments of India, MRF, among others are rising in trade .The broader sectoral index BSE Auto hits a 52-week high today.
Shares of automobile companies are on a roll with the S&P BSE Auto index hitting fresh record high in Thursday's intra-day trade on strong demand outlook. #AutoStocks#StockMarkets#MarketsWithBShttps://t.co/g51M6tsmtE
— Business Standard (@bsindia) July 7, 2022Jubilant Pharmovais trading with more than nine times its weekly average trading volume. Equitas Small Finance Bank, Kalyan Jewellers India, NBCC (India), and Natco Pharmaare trading at more than four times their weekly average trading volumes.
Bharat Heavy Electricals rises after the company announces that it has commissioned India's largest floating solar photovoltaic power plant at 100 mega watts at MTPC Ramagundam in Telangana. BHEL has now successfully installed three floating solar power plants in the last 10 months.
Lupin rises after receiving an establishment inspection report (EIR) from the US FDA for its manufacturing plant in Somerset, New Jersey. The US FDA classifies the inspection as voluntary action indicated (VAI). This means that the US FDA found some objectionable conditions in the inspection but will not be taking any regulatory action against the company. This report comes after the warning letter issued by US FDA in June 2022. The company is working towards maintaining high quality in its manufacturing and supply processes.
Equitas Small Finance Bank is rising as its advances in Q1FY23 are up 22% YoY (up 5% QoQ) to Rs 21,699 crore. The bank’s disbursements rise 2.6X YoY to Rs 3,238 crore but fall 1% QoQ. Its total deposits rise 19% YoY to Rs 20,386 crore and CASA (current account savings account) ratio stands at 51.7%.
Consumer durables stocks like Havells India, Voltas, Crompton Greaves Consumer Electricals, Dixon Technologies (India), Whirlpool of India, among others are rising in trade. The broader sectoral index BSE Consumer Durables is also trading in the green.
Raymond rises as its step-down wholly-owned subsidiary company Ten X Realty signs a joint development agreement for a premium residential project in Mumbai. The company estimates the project’s revenue potential at Rs 2,000 crore.
Sobha’s bookings rise 67.7% YoY to Rs 1,145.5 crore in Q1FY23. The company’s sales volumes increase 51.7% to 13.5 lakh square feet. Bengaluru sales volumes see the highest growth of 59.7% YoY to 10.6 lakh square feet because of three new project launches.
JSW Steel’s total crude steel production rises 16% YoY to 5.88 million tonnes but falls 2% QoQ due to the preponement of certain scheduled shutdowns during Q1FY23. The company’s Indian operations steel production rises 37% YoY to 5.62 million tonnes whereas its production including joint control rises by 16% YoY to 5.72 million tonnes.
Titan’s Q1FY23 sales surge 205% YoY, on a low base, helped by its jewellery business. The jewellery business sales grew 207% as the number of walk-ins and buyers grew. Sales of plain jewellery rose 3X YoY. Other businesses like fragrance, fashion accessories, and Indian dress wear also rise 271% because of an increase in sales from trade and e-commerce channels.
Riding High:
Largecap and midcap gainers today include Star Health and Allied Insurance Company Ltd. (531.90, 11.74%), Canara Bank (208.55, 8.20%) and Vedanta Ltd. (227.70, 6.18%).
Downers:
Largecap and midcap losers today include Godrej Consumer Products Ltd. (855.20, -2.81%), GlaxoSmithKline Pharmaceuticals Ltd. (1,504.45, -2.78%) and Adani Transmission Ltd. (2,466.10, -1.81%).
Crowd Puller Stocks
24 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Star Health and Allied Insurance Company Ltd. (531.90, 11.74%), Sobha Ltd. (641.05, 9.83%) and Ceat Ltd. (1,122.10, 9.53%).
Top high volume losers on BSE were Natco Pharma Ltd. (633.40, -0.92%) and Cyient Ltd. (734.45, -0.24%).
Jubilant Pharmova Ltd. (367.65, 6.64%) was trading at 18.1 times of weekly average. NBCC (India) Ltd. (31.85, 9.45%) and Equitas Small Finance Bank Ltd. (39.90, 1.40%) were trading with volumes 12.9 and 8.2 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
7 stocks overperformed with 52-week highs,
Stocks touching their year highs included - Mahindra & Mahindra Ltd. (1,133.30, 2.60%), Phoenix Mills Ltd. (1,234.00, 4.40%) and Siemens Ltd. (2,663.60, 0.59%).
17 stocks climbed above their 200 day SMA including Ceat Ltd. (1,122.10, 9.53%) and VIP Industries Ltd. (621.15, 3.98%). 4 stocks slipped below their 200 SMA including Godrej Consumer Products Ltd. (855.20, -2.81%) and Max Healthcare Institute Ltd. (364.85, -1.29%).