Trendlyne Analysis
Nifty 50 closed lower for a seventh straight session with the volatility index, India VIX, at an elevated level of 22%. The benchmark index remained volatile today on the back of futures and options September 29 contract expiry. Investors look ahead to RBI’s Monetary Policy Committee or MPC meeting decision to be announced on Friday. Analysts expect RBI to raise interest rates by 50 bps to combat high inflation.
European stocks traded lower ahead of the German inflation print release for clues on interest rate hikes by the European Central Bank. Major Asian indices closed mixed, despite the US indices closing in the green on Wednesday. US stocks rose sharply amid falling treasury yields after the Bank of England announced a 65-billion-pound bond-buying program to stem a crisis in treasury markets due to a huge sell-off in government bonds. The tech-heavy NASDAQ 100 index and S&P 500 rose close to 2% while the Dow Jones closed 1.9% higher. Brent crude oil futures traded higher after rising over 6% in the past two days. Crude oil extended its gains on Wednesday after supply concerns emerged from the US due to a hurricane in the Gulf of Mexico. Traders will keep an eye on the Chinese manufacturing data and an OPEC meeting that could further aggravate the supply concerns.
Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, despite the benchmark index closing lower. Nifty Metal and Nifty Media closed higher than Wednesday’s close. Nifty IT closed in the red, despite the NASDAQ 100 rising close to 2% on Wednesday.
Nifty 50closed at 16,842.90 (-15.7, -0.1%), BSE Sensexclosed at 56,409.96 (-188.3, -0.3%) while the broader Nifty 500closed at 14,617.90 (-2.7, 0.0%)
Market breadth is in the green. Of the 1,916 stocks traded today, 1,029 were gainers and 826 were losers.
Sanofi India is trading in the oversold zone, according to the relative strength index or RSI.
- Puneet Chhatwal, MD and CEO of Indian Hotels says that the upcoming festive season will be positive for the hospitality sector. He expects Q2FY23 to be the best quarter in the last 5-6 years.
Media stocks like Sun TV Network, PVR, Saregama, and Network 18 Media & Investmentrise in a volatile market. PVR and Network 18 rise more than 2.5% in trade today.
Sharekhan maintains its ‘Buy’ rating on Mahindra Logistics with a target price of Rs 600, implying an upside of 18.3%. The brokerage is optimistic about the company’s long-term growth potential given its focus on increasing warehousing capacity, scaling up network services, and strategic acquisitions in the logistics space. It expects the company’s revenue to grow at a CAGR of 18.5% over FY22-24.
Chemcon Speciality Chemicals surges as it commences commercial production at the P9 facility at Manjusar, Gujarat. The company adds a capacity of 2,400 metric tonnes per annum of bromobenzene at the P9 facility.
- Russia may suggest OPEC+ to cut crude oil output by 1 million barrels per day in a meeting to be held on Wednesday, according to a report by Reuters. The meeting will be held to discuss market volatility and falling oil prices.
Abbott India, Pfizer and PVR trade above their third resistance or R3 level as market trades higher.
Apollo Pipes is rising in trade as Systematix Institutional Equities initiates coverage on the stock with a ‘Buy’ rating and a target price of Rs 650. This implies an upside of 27.25%. The brokerage expects the company to perform better than its peers as it focuses on high-margin products and high capacity utilisation. It also says that the company will benefit because of a healthy outlook on the plastic piping industry.
Lupin is falling after the US FDA issues a warning letter for its Tarapur facility near Mumbai. The filing does not disclose the observations given out by US FDA but the company is working towards resolving the issues highlighted. It however says that the warning letter will not have any impact on supplies or revenues generated from the Tarapur facility.
Adani Enterprises' wholly-owned arms achieve financial closure for the Ganga Expressway project in Uttar Pradesh. The company will invest Rs 6,826 crore as equity, with Rs 5,996 crore as viability gap funding, and has tied up loans worth Rs 10,238 crore from lenders.
- Jefferies is optimistic about the growth potential of the power sector. It expects renewable energy capacity to rise by 82% by FY30E. NTPC, Power Grid and JSW Energy are its top picks in the sector.
Electronic Components, Other Non-Ferrous Metals, and Exploration & Production industries rise more than 2.5% in trade today
ICICI Securities remains positive on Torrent Pharmaceuticals’ prospects as it maintains its ‘Buy’ rating on the company but reduces its target price to Rs 1,769 from Rs 1,771. This indicates an upside of 15.3%. The brokerage revises its target price due to the additional debt the company will take on to complete the acquisition of Curatio Healthcare. It expects the firm’s new launches and robust branded chronic segment in India and Brazil to drive revenue growth. The brokerage anticipates the company’s net profit to grow at a CAGR of 57.4% over FY22-24.
FSN E-Commerce Ventures(Nykaa) is rising as its board of directors will meet on Monday to consider a bonus issue of shares
Bharat Heavy Electricals is rising as it bags an order to set up two 660 MW thermal power plants for the Talcher Thermal Power Project Stage-III in Odisha. The order consists of design, engineering, manufacturing, construction and commissioning of the two plants.
Metal stocks like Hindalco Industries, Jindal Steel & Power, Tata Steel among others are rising in trade. All constituents of the broader Nifty Metal index are trading in the green.
- Blue Dart is rising in trade after the company announces a price increase, effective from January 1. The average shipment price will go up by 9.6%, depending on the shipping profile.
Ashish Kacholia buys a 1.38% stake in Agarwal Industrial Corp worth Rs 11.4 crore in a bulk deal on Wednesday.
PGIM India Mutual Fund sells a 0.75% stake (10 lakh shares) in Can Fin Homes for Rs 46.9 crore in a bulk deal.
Edelweiss Financial Services invests Rs 250 crore in subsidiary Edelweiss Tokio Life Insurance through a rights issue. This takes its stake up to 75% from 66% earlier.
US FDA issues Form 483 with three observations to Torrent Pharma for its manufacturing facility in Indrad, Gujarat. The form is issued when the regulator observes a violation of the Food Drug and Cosmetics Act. The company however maintains that none of the observations were related to data integrity.
Riding High:
Largecap and midcap gainers today include Abbott India Ltd. (1,9181.10, 5.74%), Zomato Ltd. (61.20, 5.43%) and Bank of India (48.20, 4.56%).
Downers:
Largecap and midcap losers today include Aarti Industries Ltd. (733.85, -6.06%), Vodafone Idea Ltd. (8.50, -5.56%) and Adani Transmission Ltd. (3,406.40, -5.43%).
Crowd Puller Stocks
20 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (231.10, 14.86%), Esab India Ltd. (3,511.00, 8.33%) and Rites Ltd. (323.90, 7.32%).
Top high volume losers on BSE were Aarti Industries Ltd. (733.85, -6.06%), Equitas Holdings Ltd. (93.60, -3.90%) and Lupin Ltd. (654.80, -2.30%).
Supreme Industries Ltd. (2,117.40, 0.16%) was trading at 8.8 times of weekly average. Pfizer Ltd. (4,228.65, 1.59%) and Adani Total Gas Ltd. (3,372.25, -2.20%) were trading with volumes 8.5 and 8.0 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
4 stocks made 52-week highs, while 13 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - Cipla Ltd. (1,115.85, 1.70%), Cochin Shipyard Ltd. (432.85, 3.23%) and Rites Ltd. (323.90, 7.32%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (599.80, -0.41%) and Dhanuka Agritech Ltd. (637.85, 0.09%).
28 stocks climbed above their 200 day SMA including Esab India Ltd. (3,511.00, 8.33%) and Prism Johnson Ltd. (129.05, 6.87%). 12 stocks slipped below their 200 SMA including Dr. Lal Pathlabs Ltd. (2,591.40, -3.82%) and Vakrangee Ltd. (33.10, -2.93%).