Trendlyne Analysis

Nifty 50 finally settled in red after switching between losses and gains throughout the day, in line with the Asian indices, which closed flat to lower. The Indian volatility index, India VIX surged 3.3% as investors continue to remain indecisive of the volatility catalysts like the Ukraine crisis and impending Fed rate hikes. Gold falls from eight-month high as Biden-Putin meeting plans ease demand.

Nifty Smallcap 100 fell 2.8% continuing its decline from last week. Nifty Midcap 100 and Nifty Next 50 also closed sharply lower, underperforming the benchmark index. Nifty Metal and Nifty Media closed lower while Nifty IT ended the day flat. Among the sectoral indices, only Nifty Bank closed in the green.

Nifty 50 closed at 17,206.65 (-69.7, -0.4%), BSE Sensex closed at 57,683.59 (-149.4, -0.3%) while the broader Nifty 500 closed at 14,597.10 (-113.6, -0.8%)

Market breadth is highly negative. Of the 1,889 stocks traded today, 224 showed gains, and 1,642 showed losses.

• TeamLease Services, Bayer Cropscience, Sundram Fasteners, and Capri Global Capital are trading with higher volumes as compared to Friday.

• Metal stocks like JSW Steel, Hindustan Zinc, Vedanta, Coal India, and Hindustan Copper are trading down today. The broader sectoral index Nifty Metal is also falling in trade

• Nifty Media is trading lower with stocks like TV18 Broadcast, Saregama India, Nazara Technologies, Zee Entertainment among others falling in trade.

• NTPC’s annual electricity generation rises 16.6% YoY to 314.8 billion units surpassing the maximum annual generation of 314 billion units in FY21. Data from Central Electricity Authority shows NTPC Korba as the top-performing thermal power plant with 94.3% load factor till January 2022.

• HDFC Securities maintains a 'ADD' rating on Ambuja Cements but reduces the target price by 5%. The downward revision in target prices is on account of weak demand and acute cost pressures witnessed by the company in Q3FY22 leading to a profit fall of 36% YoY. The brokerage holds a positive medium term outlook due to Ambuja's capex plan of Rs 3,800 crore.

• Kalpataru Power Transmissions is trading with more than 19 times its weekly average trading volume. Chalet Hotels, Equitas Small Finance Bank, Linde India, and Restaurant Brands Asia are trading at more than five times their weekly average trading volumes.

• ICICI Securities initiates coverage on One97 Communications (Paytm) with a ‘BUY’ rating and a target price of Rs 1,352, indicating an upside of 63.8%. The brokerage expects gross merchandise value (GMV) to grow at >30% CAGR over FY22-26E and estimates 18-19 million consumers and 1.2 million merchants to avail lending products through the Paytm platform by FY26E.

• Binnopharm Group enters into an agreement with Dr Reddy’s to acquire its two anti-bacterial brands, Ciprolet and Levolet, in the Russia & Uzbekistan and Belarus region. This divestment of brands from Dr Reddy’s non-core areas allows the company to focus its resources and capabilities on its key therapy spaces

• Dr Reddy’s Laboratories receives an establishment inspection report (EIR) from the US Food & Drug Administration (USFDA). This indicates the closure of USFDA inspection of Dr Reddy’s formulation manufacturing facilities at Duvvada, Visakhapatnam. An EIR is a compilation report of factual information issued by the USFDA after the inspection of a company’s facilities.

• Hinduja Global Solutions is rising after its subsidiary HGS UK wins a two-year deal worth Rs 2,100 crore from UK Health Security Agency. The company will provide critical services to UK citizens in terms of contact tracing for Covid-19.

• Strides Pharma Global Pte, Singapore, a wholly-owned subsidiary of Strides Pharma Science receives US Food & Drug Administration (USFDA) approval for amantadine hydrochloride softgel capsules,100 mg. Amantadine hydrochloride capsules are mainly useful in the treatment of infection caused by various strains of the influenza A virus.

• SEBI plans to tighten IPO pricing rules for new-age tech firms by asking the companies to explain the reasoning behind the pricing of their issue. The new-age tech firms will also have to disclose the share sales and investor presentations conducted before the IPO to help retail investors make an informed decision.

• InterGlobe Aviation’s (Indigo) non-executive, non-independent director, Rakesh Gangwal, resigns from the Board of Directors of the Company with immediate effect from February 18, 2022. Gangwal, also the co-founder of Indigo, wants to reduce his stake in the company, over the next 5 years to avoid having access to unpublished price-sensitive information.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (11.25, 5.63%), 3M India Ltd. (22,156.30, 2.38%) and Coforge Ltd. (4,412.90, 2.14%).

Downers:

Largecap and midcap losers today include Adani Power Ltd. (120.15, -8.70%), Bharat Heavy Electricals Ltd. (50.50, -5.43%) and Adani Total Gas Ltd. (1,591.10, -4.45%).

Volume Shockers

12 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Chalet Hotels Ltd. (282.75, 12.27%), Linde India Ltd. (2,971.35, 9.88%) and Equitas Small Finance Bank Ltd. (55.70, 4.31%).

Top high volume losers on BSE were Indiabulls Real Estate Ltd. (103.10, -14.93%), Indiabulls Housing Finance Ltd. (166.30, -9.86%) and Restaurant Brands Asia Ltd. (117.30, -8.14%).

Kalpataru Power Transmissions Ltd. (403.35, 3.68%) was trading at 32.6 times of weekly average. Mahindra Holidays & Resorts India Ltd. (215.40, 2.72%) and Wockhardt Ltd. (380.25, 1.86%) were trading with volumes 5.5 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks overperformed with 52-week highs, while 44 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Linde India Ltd. (2,971.35, 9.88%) and Chalet Hotels Ltd. (282.75, 12.27%).

Stocks making new 52 weeks lows included - AIA Engineering Ltd. (1,772.65, -0.66%) and Alembic Pharmaceuticals Ltd. (691.90, -1.19%).

5 stocks climbed above their 200 day SMA including Cholamandalam Financial Holdings Ltd. (669.45, 0.67%) and HDFC Bank Ltd. (1522.10, 0.64%). 20 stocks slipped below their 200 SMA including Sterling and Wilson Renewable Energy Ltd. (331.15, -4.69%) and Welspun Corp Ltd. (148.60, -4.65%).