Trendlyne Analysis

Nifty 50 extended its gains throughout the day and closed higher with the Indian volatility index, India VIX falling sharply for the second consecutive day. Asian indices closed in the green, tracking the rally in the US indices. US stocks closed sharply higher on Wednesday as the US Federal Reserve commenced the interest rate hikes with an expected quarter percentage point and signaled hikes at all six remaining meetings. Fed Chairman Jerome Powell assured investors that the US economy is “very strong” and can handle monetary tightening. Crude oil prices rise to trade over $100 per barrel as uncertainties prevail over the Ukraine crisis.

Barring Nifty IT, all sectoral indices closed in the green. Nifty Next 50 and Nifty Smallcap 100 closed in the green to extend their gains from Wednesday. Nifty Metal, which gained 2.6% yesterday, closed 1.9% higher. Nifty IT closed marginally lower despite the tech-heavy NASDAQ 100 surging 3.7% yesterday.

Markets rose in today's trading. Nifty 50 closed at 17,287.05 (311.7, 1.8%), BSE Sensex closed at 57,863.93 (1,047.3, 1.8%) while the broader Nifty 500 closed at 14,721.70 (239.9, 1.7%)

Market breadth is in the green. Of the 1,881 stocks traded today, 1,170 were in the positive territory and 660 were negative.

• SKF India, KEI Industries, IIFL Wealth Management, and Adani Total Gas trading with higher volumes as compared to Wednesday.

• Hindustan Construction Company and Om Infra's joint venture receives a contract worth Rs 609 crore from the public health engineering department, the government of Rajasthan, for the construction of the Nokha water supply project to provide functional household tap connection in Bikaner.

• Jefferies initiates coverage on Nykaa with a 'BUY' rating and a target price upside of 10.3%. The brokerage is positive on this company as it leads the online beauty segment and its fashion segment is scaling up fast. The company also enjoys customer stickness due to its diverse and authentic product portfolio.

• Voltas is rising as its board approves a joint venture (JV) arrangement with Highly International (Hong Kong), a wholly-owned subsidiary of Shanghai Highly Company. The companies plan to engage in the business of development, manufacture, marketing, sale, and service of inverter compressors.

• In its buyback offer of nearly Rs 180-crore, KPR Mills will buy 1 share for every 16 shares held by the retail investors on the record date i.e. Febuary 19, 2022. KPR will buy back 5 shares for a lot of 891 shares held by all other eligible investors.

• IFB Industries is trading with more than 35 times its weekly average trading volume. Timken India, Trent and Jindal Saw are trading at more than six times their weekly average trading volumes.

• Macquirie slashes the target price on Paytm by 36% to Rs 450 citing concerns on its long-term growth and cash flow generation. The brokerage holds a negative view on the company after RBI directed Paytm Payments Bank to stop onboarding new customers. The chances of the company getting a small finance banking license are now bleak.

• Hem Securities initiates coverage on Endurance Technologies with a ‘Buy’ rating and a target price of Rs 1,342, indicating an upside of 15%. The brokerage is bullish on the company’s strong positioning in the 2-wheeler segment, expansion plans into various segments like disk brakes & alloy wheels, new customer wins, and increasing EV penetration.

• JSW Energy is rising on the bourses as it completes the reorganization of its green (renewable) and grey (thermal) business areas to focus on renewable and thermal power segments. As a result, three overseas subsidiaries of the Company have been transferred to JSW Neo Energy.

• Godrej Properties rises as it achieves sales of Rs 1,650 crore from Godrej Woods project in Noida. The company sold 855 homes within a year of the launch of the project.

• Jindal Poly Films (JPFL) is rising as it signs an agreement for the sale of a minority stake in its packaging films business to Brookfield Asset Management. The asset management company agrees to a Rs 2,000 crore deal with JPFL for the acquisition of a non-controlling minority stake in JPFL Films, which is subject to the approval of the members of the Company

• BOB Capital Markets initiates coverage on Zydus Wellness with a ‘BUY’ rating and a target price of Rs 2,185, indicating an upside of 45%. The brokerage has a positive outlook on the company on the back of its product expansion, distribution expansion, and Heinz India merger. The brokerage expects the company’s net profit to grow at a CAGR of 11% over FY21-24.

• Adani Power acquires Essar power's 1,200 MW thermal power project in Mahan, Madhya Pradesh for Rs 4,250 crore. The cost of acquisition of Essar Power M P includes the cost of compliance with environmental and emission norms. Essar Power M P is undergoing an insolvency resolution.

Riding High:

Largecap and midcap gainers today include Trent Ltd. (1,262.05, 7.75%), L&T Finance Holdings Ltd. (71.35, 7.13%) and Sona BLW Precision Forgings Ltd. (684.50, 6.21%).

Downers:

Largecap and midcap losers today include Ruchi Soya Industries Ltd. (1,004.35, -6.25%), Oil India Ltd. (219.90, -6.15%) and Max Healthcare Institute Ltd. (334.60, -4.58%).

Volume Shockers

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

Top high volume gainers on BSE included Angel One Ltd. (1,619.05, 14.23%), IFB Industries Ltd. (996.70, 13.22%) and Brigade Enterprises Ltd. (529.15, 10.47%).

Top high volume losers on BSE were Max Healthcare Institute Ltd. (334.60, -4.58%), Vardhman Textiles Ltd. (2,639.95, -4.19%) and ABB India Ltd. (2,101.35, -4.09%).

Grindwell Norton Ltd. (1,837.90, -0.11%) was trading at 12.8 times of weekly average. Timken India Ltd. (2,198.75, 6.47%) and YES Bank Ltd. (12.95, 1.17%) were trading with volumes 10.6 and 10.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks made 52-week highs, while 1 stock was underachiever and hit their 52-week lows.

Stocks touching their year highs included - Cholamandalam Investment & Finance Company Ltd. (719.85, 3.22%), GHCL Ltd. (531.60, 0.83%) and Sun Pharmaceutical Industries Ltd. (911.60, 2.52%).

Stock making new 52 weeks lows included - Thyrocare Technologies Ltd. (780.25, -0.83%).

33 stocks climbed above their 200 day SMA including EIH Ltd. (139.25, 8.45%) and Motilal Oswal Financial Services Ltd. (892.25, 7.27%). 4 stocks slipped below their 200 SMA including Max Healthcare Institute Ltd. (334.60, -4.58%) and Au Small Finance Bank Ltd. (1,163.40, -1.31%).