Market closes lower, Motilal Oswal maintains a ‘Buy’ rating on IIFL Wealth Management

Trendlyne Analysis

Nifty 50 closes in the red amid weak global cues. Asian shares closed mixed as investors continue to digest Tuesday’s US inflation data, which showed that the consumer price index (CPI) rose 8.5% YoY in March, its highest level since 1981. India’s retail inflation print rises 6.95% YoY in March, led by a sharper than the expected spike in food and manufactured goods prices. Crude oil prices rise as Russian President, Vladimir Putin vowed to continue the invasion of Ukraine and China partially eased its Covid-19 lockdown. Investors also look forward to the latest earnings season as they assess the impact of inflation on company profit. UK inflation rate rises 7% YoY in March, its highest since 1992.

Nifty Smallcap 100 closed in the green, despite the benchmark index closing lower. Nifty Realty extends its losses and closes in the red. Nifty IT closes higher, taking cues from the NASDAQ 100 Futures, which are trading higher.

Nifty 50 closed at 17,475.65 (-54.7, -0.3%), BSE Sensex closed at 58,338.93 (-237.4, -0.4%) while the broader Nifty 500 closed at 15,138.55 (-26.2, -0.2%)

Market breadth is in the green. Of the 1,894 stocks traded today, 1,047 were on the uptick, and 804 were down.

KEC International, TeamLease Services, Cholamandalam Financial Holdings, and CCL Products India are trading with higher volumes as compared to Tuesday.
Yes Securities maintains 'Buy' on SBI Cards and Payment Services with a target price of Rs 1,210 indicating an upside 45%, according to reports. The brokerage has a positive outlook on the company on the back of strong acquisitions and a sharp recovery in both retail and corporate spending.
HDFC Securities expects power sector companies like NTPC, Power Grid, Tata Power, CESC, Torrent Power, JSW Energy, and NHPC to report strong profit growth in Q4FY22,. The brokerage expects better power demand in the latter part of the quarter and overall improved merchant realisations to boost profits. The brokerage expects revenue for these power companies to rise 7.5% YoY and profits to rise 30.8% YoY during Q4FY22.
Oil India and Oil and Natural Gas Corporation (ONGC) surge as Brent crude oil prices rise amid reports of supply disruption due to the geopolitical conflict in Ukraine and easing of lockdown curbs in parts of China. Brent crude oil is currently trading at $ 105.
Motilal Oswal maintains a ‘Buy’ rating on IIFL Wealth Management with a target price of Rs 2,200, indicating an upside of 20.6%. The brokerage believes the company is well placed to benefit from the interest rates remaining low and an increasing number UNHIs (ultra-high net worth individuals) preferring organized wealth management platforms to invest in.
Ambuja Cements, Bharat Electronics, NTPC, Hindustan Aeronautics, and Au Small Finance Bank are in overbought zone according to technical indicator relative strength index or RSI.
Axis Securities expects pharmaceutical companies like Dr Reddy’s, Lupin, Cipla, and Aarti Drugs to report high single-digit revenue growth YoY in Q4FY22. The brokerage expects EBITDA margins of pharma companies to remain under pressure due to elevated prices of organic chemicals and solvents as a result of Russia-Ukraine war.
Vakrangee is trading with more than seven times its weekly average trading volume. JM Financial, J B Chemicals & Pharmaceuticals, Avanti Feeds and RHI Magnesita India are trading at more than four times their weekly average trading volumes.
Axis Securities maintains a ‘Buy’ rating on Tata Consultancy Services (TCS) with a target price of Rs 4,200, indicating an upside of 14%. The brokerage maintains a positive outlook on the company as the company's Q4FY22 revenue growth beat its expectations. The brokerage expects the positive growth trend to continue for the company supported by strong traction in all of its business verticals, and a robust deal pipeline in the coming quarters.
Prestige Estates Projects' presales increase 77% YoY to Rs 3,268.7 crore in Q4FY22 and rises 90% YoY to Rs 10,382.2 crore in FY22. In Q4FY22, the company's launches increase 6% YoY to 5.01 million square feet and in FY22 launches rise by 42% to 16.77 million square feet.
Anand Rathi Wealth’s Q4FY22 net profit rises 8% QoQ to Rs 34.6 crore and revenues increase by 6% to Rs 114.7 crore. Mutual funds’ (equity and debt) asset under management (AUM) value increases 2.8% YoY to Rs 19,435 crore. The company also announces an interim dividend of Rs 6 per share.
Directorate General of Civil Aviation (DGCA) bars 90 SpiceJet pilots, according to reports, from flying Boeing 737 Max aircraft until the completion of their training to DGCA’s satisfaction. This comes in light after DGCA finds anomalies in the simulator training of the airplane that takes place in Noida. SpiceJet currently has 650 trained pilots to fly Boeing 737 Max which won’t affect its daily operations.
Hariom Pipe Industries’ shares list at 43.8% premium to the issue price of Rs 153 on its debut on the bourses after getting bids for 8X of total shares on offer.
Hathway Cable and Datacom’s Q4FY22 revenue rises 2.3% YoY to Rs 448.79 crore and profit falls 60.6% YoY to Rs 28.42 crore on increasing input costs. In FY22, revenue rises 3.5% YoY to Rs 1,793.02 crore and profit falls 48.5% YoY to Rs 130.35 crore.
Mahanagar Gas increases the prices of compressed natural gas by Rs 5 per kg and piped natural gas by Rs 4.5 per standard cubic metre for Mumbai and nearby areas. The prices are in effect from April 12, 2022. This is the second price hike taken by the company in April 2022.

Riding High:

Largecap and midcap gainers today include Hindustan Zinc Ltd. (352.45, 3.56%), Indraprastha Gas Ltd. (389.90, 3.30%) and Ruchi Soya Industries Ltd. (952.60, 3.18%).

Downers:

Largecap and midcap losers today include JSW Energy Ltd. (325.90, -4.67%), Adani Power Ltd. (223.25, -3.27%) and Bajaj Holdings & Investment Ltd. (5,517.05, -3.19%).

Volume Shockers

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

Top high volume gainers on BSE included Thermax Ltd. (2,229.85, 11.69%), Vakrangee Ltd. (37.70, 10.88%) and CreditAccess Grameen Ltd. (1,036.15, 9.72%).

Top high volume loser on BSE was Emami Ltd. (465.55, -2.37%).

PNB Housing Finance Ltd. (412.35, 6.94%) was trading at 7.5 times of weekly average. JM Financial Ltd. (71.00, 2.60%) and Avanti Feeds Ltd. (494.65, 6.51%) were trading with volumes 7.5 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Bharat Electronics Ltd. (247.10, 1.94%), Deepak Fertilisers & Petrochemicals Corporation Ltd. (676.50, 4.99%) and GHCL Ltd. (573.40, 4.19%).

17 stocks climbed above their 200 day SMA including Vakrangee Ltd. (37.70, 10.88%) and Sterling and Wilson Renewable Energy Ltd. (361.90, 3.64%). 19 stocks slipped below their 200 SMA including Nesco Ltd. (587.80, -3.00%) and Galaxy Surfactants Ltd. (2,966.55, -2.25%).