Trendlyne Analysis

Nifty 50 closed flat after moving from green to red between gains and losses on a volatile day of trade. This volatility is expected to continue amid rising commodity prices. Crude oil prices inch higher as Russian President Vladimir Putin said that Russia will seek payment in roubles for gas sold to “unfriendly” countries. US indices fell on Thursday after volatile commodity prices add pressure to the market already dealing with record inflation level. Russian markets partially reopen after a month-long shutdown following the invasion of Ukraine.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green despite the benchmark index closing flat. Nifty Media closed 6% higher led by the heavyweights' Zee Entertainment and TV18 broadcast. Nifty Metal closed in the green to extend its winning streak to six days. Nifty IT closed higher, tracking the tech heavy NASDAQ 100 futures, which is trading higher.

Nifty 50 closed at 17,222.75 (-22.9, -0.1%), BSE Sensex closed at 57,595.68 (-89.1, -0.2%) while the broader Nifty 500 closed at 14,699.35 (4.2, 0.0%)

Market breadth is in the red. Of the 1,880 stocks traded today, 723 showed gains, and 1,123 showed losses.

• V-Guard Industries, Kalpataru Power Transmissions, Prism Johnson, and Cholamandalam Financial Holdings trading with higher volumes as compared to Wednesday.

• Emkay Global recommends a ‘Buy’ on State Bank of India with a target price of Rs 680 as it expects credit growth to be around 9-10% in FY22. The brokerage also sees the bank’s operating profit to increase by CAGR 20% over FY22-24 led by rise in net interest income and fee income.

• Media stocks like Zee Entertainment, Dish TV India, TV18 Broadcast, Network 18 Media & Investments among others are rising in trade. The broader sectoral index Nifty Media is also rising in trade.

• Lupin is rising as it receives US Food and Drug Administration (USFDA) approval for its abbreviated new drug application (ANDA), Sildenafil for oral suspension, 10 mg/mL. The product is a generic equivalent of Revatio, which has an estimated annual sales of $66 million in the US. Sildenafil is used to treat pulmonary arterial hypertension.

• HCL Technologies ties-up with Latin American company NEORIS, a leading global digital accelerator, to strengthen its digital transformation capabilities and expand its market presence in Mexico and South America

• Indraprastha Gas increases the prices of compressed natural gas by Rs 0.50 per kg and piped natural gas by Rs 1 per standard cubic metre for Delhi with effect from today. This is the third price hike after the company hiked gas prices back in October 2021 and January 2022.

• Bajaj Holdings & Investment is trading with more than nine times its weekly average trading volume. SIS, Minda Corporation, Kotak Mahindra Bank, and Zee Entertainment Enterprises are trading at more than five times their weekly average trading volumes.

• Ruchi Soya is falling as its Rs 4,300 crore follow-on public offering (FPO) opens for subscription. The company raises Rs 1,290 crore from anchor investors ahead of its FPO. At the upper end of the price band of Rs 650, the company’s FPO is available at more than a 40% discount to its current market price.

• Pharma stocks like Dr. Reddy's Laboratories, Aurobindo Pharma, Lupin, and Glenmark Pharmaceuticals are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

• Sharekhan maintains a ‘Buy’ rating on APL Apollo Tubes with a target price of Rs 1,100 indicating an upside of 28%. The brokerage believes the company’s investment in Shankara Building Products’ can potentially double its sales and improve its volumes as it will be able to use extensive retail and wholesale network. The brokerage expects the company to expand distribution into untapped markets through its investment.

• Zee Entertainment surges as Invesco Developing Markets Fund (Invesco) withdraws its requisition notice, seeking the removal of MD and CEO Punit Goenka from the board of the company. Invesco withdraws its notice a day after winning its appeal in the Bombay High Court. Invesco is the largest shareholder in the company with a stake of 18%.

• Motilal Oswal maintains a ‘BUY’ rating on Ajanta Pharma with a target price of Rs 2,500, indicating an upside of 29%. However, the brokerage reduces the target price by 10% as it expects the slow pace of abbreviated new drug application (ANDA) filings to hinder growth over the medium term. The brokerage remains positive on the long term on the back of robust outlook in the Branded Generics segment.

• RBI approves SBI Mutual Fund, along with other SBI Group companies for acquiring 9.99% stake in ICICI Bank. SBI Mutual Fund holds 5.72% stake in ICICI Bank, till December 2021.

Riding High:

Largecap and midcap gainers today include Zee Entertainment Enterprises Ltd. (298.90, 16.74%), Dr. Reddy's Laboratories Ltd. (4,328.50, 4.87%) and Adani Total Gas Ltd. (1,979.75, 4.31%).

Downers:

Largecap and midcap losers today include L&T Finance Holdings Ltd. (80.05, -8.25%), Hindustan Petroleum Corporation Ltd. (275.00, -3.39%) and Kotak Mahindra Bank Ltd. (1,714.15, -3.14%).

Volume Rockets

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

Top high volume gainers on BSE included Zee Entertainment Enterprises Ltd. (298.90, 16.74%), India Tourism Development Corporation Ltd. (403.65, 13.82%) and Sequent Scientific Ltd. (139.45, 12.87%).

Top high volume losers on BSE were Kotak Mahindra Bank Ltd. (1,714.15, -3.14%), IIFL Finance Ltd. (283.35, -1.01%) and eClerx Services Ltd. (2,349.80, -0.44%).

SIS Ltd. (490.55, 2.11%) was trading at 11.9 times of weekly average. Bajaj Holdings & Investment Ltd. (5,057.65, 0.23%) and Minda Corporation Ltd. (206.85, 5.11%) were trading with volumes 9.9 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks overperformed with 52-week highs, while 3 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Cholamandalam Investment & Finance Company Ltd. (731.35, 1.33%), Cummins India Ltd. (1,094.00, 0.64%) and Hindalco Industries Ltd. (621.95, 2.22%).

Stocks making new 52 weeks lows included - Max Financial Services Ltd. (747.65, -2.90%) and Procter & Gamble Health Ltd. (4,266.00, 0.13%).

15 stocks climbed above their 200 day SMA including Zee Entertainment Enterprises Ltd. (298.90, 16.74%) and India Tourism Development Corporation Ltd. (403.65, 13.82%). 10 stocks slipped below their 200 SMA including L&T Finance Holdings Ltd. (80.05, -8.25%) and Hatsun Agro Products Ltd. (1,131.30, -3.34%).