Trendlyne Analysis

Nifty 50 closed sharply higher despite negative cues from other Asian indices. US indices closed lower on Tuesday after President Joe Biden imposed a ban on imports of Russian oil, and more major firms announced they were shutting operations in Russia. Crude oil prices continue to trade at elevated levels after the US banned Russian oil imports. Russia ships around seven to eight million barrels of crude oil per day to fuel global markets. Investors await the results of Uttar Pradesh elections to be announced tomorrow.

Nifty Smallcap 100 traded in the green throughout the day and closed higher to outperform the benchmark index. Exports focused sectors, Nifty IT and Nifty Pharma closed sharply higher as the Indian Rupee continues to depreciate against the US Dollar leading to a possibility of higher margins for companies through forex gains.

Upbeat trading today. Nifty 50 closed at 16,345.35 (331.9, 2.1%), BSE Sensex closed at 54,647.33 (1,223.2, 2.3%) while the broader Nifty 500 closed at 13,979.60 (272.9, 2.0%)

Market breadth is ticking up strongly. Of the 1,860 stocks traded today, 1,560 were in the positive territory and 281 were negative.

• TTK Prestige, GlaxoSmithKline Pharmaceuticals, Bajaj Holdings & Investment, and Bayer Cropscience are trading with higher volumes as compared to Tuesday.

• ISGEC Heavy Engineering rises after it wins an order to manufacture and supply cement waste heat recovery boilers to Shree Cements' integrated cement Plant at Jhunjhunu, Rajasthan. This WHRS plan will generate nearly 35.5 MW of power for the cement major.

• IndusInd Bank informs the stock exchanges that it will set aside Rs 13.5 crore as an additional provision this quarter (Q4FY22). This is in response to an external review of allegations by anonymous people about the lender’s subsidiary. The review found that Bharat Financial Inclusion Limited gave out microloans without the consent of customers, due to a technical glitch because of IT change management and process gap.

• Auto stocks like Ashok Leyland, Mahindra & Mahindra, TVS Motor Company, Tata Motors among others are trading higher. The broader sectoral index Nifty Auto is also trading in the green.

• Motilal Oswal maintains a ‘BUY’ rating on Alkem Laboratories with a target price of Rs 3,870, indicating an upside of 18%. The brokerage has a positive outlook on the company as it remains better placed to benefit from an improving outlook in the Indian formulations segment. Alkem Labs garners 70% of its revenue from India. The brokerage expects the company’s revenue to grow at 10% CAGR over FY22-FY24

• IOL Chemicals and Pharmaceuticals is trading with more than ten times its weekly average trading volume. Bajaj Electricals, Zydus Lifesciences, Godrej Agrovet, and Bosch are trading at more than three times their weekly average trading volumes.

• Media stocks like Zee Entertainment, Sun TV Network, TV18 Broadcast, PVR and Saregama India are rising. The broader sectoral index i.e. Nifty Media is also trading up today.

• Edelweiss maintains a ‘Buy’ rating on Tata Consultancy Services (TCS) with a target price of Rs 5,000 indicating an upside of 38%. The brokerage believes the company is well-positioned to benefit from the tech shift to cloud as many customers are embarking on multi-year, enterprise-wide transformation journeys. The brokerage also expects robust demand as growth indicators continue to be strong, including deal wins, client additions, and hiring trends.

• Aviation companies’ stocks like InterGlobe Aviation, Spice Jet, Jet Airways, and TAAL Enterprises are trading up. As the Civil Aviation Ministry announces regular international flights to and from India will be resumed from the 27th of March, 2022.

• Larsen & Toubro's arm L&T Construction wins a order worth Rs 1,000-2,000 crore from Delhi Metro Rail Corporation to design and construct the Underground Metro Project in Delhi

• Sentynl Therapeutics, a wholly-owned subsidiary of Zydus Lifesciences, enters into an asset purchase agreement for the sale of Nulibry (Fosdenopterin) injections. The product, which is approved by the US Food and Drug Administration (USFDA), is used to reduce the risk of mortality in patients with molybdenum cofactor deficiency.

• Adani Ports and Special Economic Zone signs an agreement with the Indian Oil Corporation (IOC) towards the augmentation of IOC’s crude oil volumes at Mundra port. The refiner will expand its existing crude oil tank farm at Mundra Port, thus enabling it to handle and blend an additional 10 million metric tonnes of crude oil per annum. This agreement supports IOC’s expansion of its Panipat refinery.

Riding High:

Largecap and midcap gainers today include Dalmia Bharat Ltd. (1,465.10, 7.55%), Ashok Leyland Ltd. (106.75, 7.50%) and Dr. Lal Pathlabs Ltd. (2,614.70, 7.25%).

Downers:

Largecap and midcap losers today include Coforge Ltd. (4,556.10, -5.33%), Petronet LNG Ltd. (212.70, -3.69%) and Bosch Ltd. (14,224.20, -3.06%).

Movers and Shakers

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

Top high volume gainers on BSE included IOL Chemicals and Pharmaceuticals Ltd. (377.75, 20.00%), Mas Financial Services Ltd. (635.90, 16.23%) and Venky's (India) Ltd. (2,195.95, 10.02%).

Top high volume losers on BSE were Bajaj Electricals Ltd. (1,051.10, -5.40%), Bosch Ltd. (14,224.20, -3.06%) and Cholamandalam Financial Holdings Ltd. (604.95, -3.00%).

Zydus Lifesciences Ltd. (359.35, 4.31%) was trading at 4.5 times of weekly average. Alembic Pharmaceuticals Ltd. (722.15, 0.86%) and Godrej Agrovet Ltd. (485.00, -0.06%) were trading with volumes 4.3 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks took off, crossing 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (618.95, 1.64%) and Lemon Tree Hotels Ltd. (57.70, 1.05%).

Stocks making new 52 weeks lows included - JK Cement Ltd. (2,257.55, 3.12%) and Whirlpool of India Ltd. (1,589.90, 1.31%).

33 stocks climbed above their 200 day SMA including Anupam Rasayan India Ltd. (882.25, 11.99%) and DCM Shriram Ltd. (1,027.15, 7.47%). 4 stocks slipped below their 200 SMA including Indian Oil Corporation Ltd. (116.95, -0.09%) and Polycab India Ltd. (2,246.20, 0.35%).