Trendlyne Analysis

Nifty 50 closed in the green with the Indian volatility index falling by 9.5%. Asian shares closed higher after all major indices closed in the red on Monday. US indices recovered their losses towards the end of the trading session to close higher on Monday after Twitter’s board accepted Elon Musk’s $44 billion cash offer to take the company private. Global sentiment remains fragile on the back of China’s economic slowdown, high inflation level, and prospect of aggressive monetary policy tightening by the Fed. Crude oil continues to fall as investors assess the impact of China’s Covid-19 resurgence on the outlook for global demand. European indices trade higher, following the global trend amid mixed cues.

All sectoral indices closed in the green. Nifty Smallcap 100 and Nifty Midcap 100 closed higher, following the benchmark index. Nifty Metal, which lost 2.85% on Monday, closed 1.28% higher. Nifty IT also closed in the green, tracking the tech-heavy NASDAQ 100, which closed 1.32% higher on Monday.

Nifty 50 closed at 17,200.80 (246.9, 1.5%), BSE Sensex closed at 57,356.61 (776.7, 1.4%) while the broader Nifty 500 closed at 14,898.35 (225.4, 1.5%)

Market breadth is in the green. Of the 1,872 stocks traded today, 1,102 were in the positive territory and 733 were negative.

• AIA Engineering, IFB Industries, Thyrocare Technologies, and Sanofi India are trading with higher volumes as compared to Monday.

• Hindustan Aeronautics and Bharat Electronics rise as they ink a pact to co-produce and develop ‘Long Range Dual Bank IRST (Infra-Red Search & Track System)’ for Sukhoi 30 MKI. This development of high-end strategic technology for the air fighter is a part of the ‘Make in India’ initiative.

• PSU Bank stocks like Canara Bank, State Bank of India, Bank of Baroda, and Indian Bank, among others, are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

• Atul is falling as the company's Q4FY22 profit falls 22.7% YoY to Rs 136.56 crore due to a rise in expenses of materials, power, fuel, and water, despite a 22.8% YoY rise in revenue to Rs 1,370.42 crore. In FY22, the company's profit falls 8.4% YoY to Rs 604.74 crore.

• IT stocks like Wipro, Infosys, Tech Mahindra, and MphasiS, among others, are in the oversold zone, according to the technical indicator relative strength index or RSI.

• Auto stocks like Ashok Leyland, TVS Motor, Bajaj Auto, and Hero MotoCorp, among others are rising in trade. The broader sectoral index Nifty Auto is also trading in green.

• Campus Activewear’s Rs 1,400-crore IPO gets bids for 1.24X of the available 3.36 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.88X of the available 1.6 crore shares on offer. The issue is entirely an offer for sale of Rs 1,400 crore.

• ACC, Angel One, Cyient, and Mahindra CIE Automotive, among others, are rising over the past week after announcing their Q4FY22 results

• Shriram Properties signs an MoU with LOGOS for a sale of 90 acres of land in Shriram Grand City, Kolkata. LOGOS will use this land to build a warehousing and logistics park. Post the transaction the project is likely to complete by H2FY23.

• Endurance Technologies is trading with more than 12 times its weekly average trading volume. Mahindra CIE Automotive, Bombay Burmah Trading Corporation, TVS Motor, and Nippon Life India Asset Management are trading at more than four times their weekly average trading volumes.

• ICICI Direct maintains a ‘Buy’ rating on Tata Communications with a target price of Rs 1,610, indicating an upside of 30%. The brokerage remains positive on the company due to its improving cash flows, growing digital platforms and data business, and a healthy order pipeline. The brokerage expects net profit to rise at a 13.7% CAGR over FY22-24.

• Meghmani Finechem's Q4FY22 net profit jumps 3X YoY to Rs 99 crore while revenues rise 93% YoY to Rs 499 crore. Higher sales realizations for caustic soda and hydrogen peroxide product lines drives overall profit growth in Q4FY22

• MindTree outperforms Larsen & Toubro Infotech (LTI) by 4.0 percentage points in QoQ net profit growth in Q4FY22. However, LTI outperforms MindTree on nine out of 16 fundamental parameters like QoQ revenue growth, annual return on equity, price-to-earnings ratio, among others, according to Trendlyne’s Stock Comparison tool.

• Gujarat Mineral Development Corporation reports a net profit in Q4FY22 of Rs 175.8 crore against a loss of Rs 184.6 crore a year ago. Revenue rises 80.3% YoY to Rs 1,097 crore driven by growth in the mining and power segments. In FY22, the company reports a net profit of Rs 405 crore against a loss of Rs 39.3 crore a year ago and revenue rises 93.6% YoY to Rs 2,888.9 crore.

• Tatva Chintan Pharma Chem is falling as Q4FY22 profit falls 7.2% YoY to Rs 18.9 crore and revenue falls 3.2% YoY to Rs 103.1 crore. In FY22, the company's profit rises 83% to Rs 95.9 crore.

• Citi upgrades Reliance Industries to ‘Buy’ with a target price of Rs 3,170, according to reports. It expects the company’s EBITDA to grow 3-9% over FY23-24. However, the brokerage sees no major growth in the O2C (oil-to-chemical) segment in Q4FY22.

• Veranda Learning Solutions is rising as it acquires T.I.M.E (Advanced Educational Activities Pvt Ltd) for Rs 287 crore. The acquisition includes the business of spoken English under VETA brand and pre-school operations under T.I.M.E brand. The acquisition will be in a phased manner with 80% of the outstanding capital along with management control in phase 1, followed by the purchase of the remaining 20% at the end of two years.

• Tata Investment Corporation’s Q4FY22 net profit rises more than 7X YoY to Rs 20.2 crore and revenue rises 71% YoY to Rs 50.9 crore on the back of a rise in dividend income and net gain on fair value changes. In FY22, net profit rises 38.6% YoY to Rs 214.46 crore and revenue rises 55% YoY to Rs 254 crore.

• Campus Activewear raises Rs 418.3 crore from investors by selling 1.43 crore equity shares at Rs 292 per share to 32 anchor investors. Investors include Abu Dhabi Investment Authority, Nomura, CLSA, Societe Generale, Goldman Sachs, ICICI Prudential, HDFC Life Insurance, Motilal Oswal, among others.

• Mahindra CIE Automotive reports net profit in Q1CY22 of Rs 168.69 crore against a loss of Rs 76.1 crore a year ago. Net sales rise 14.6% YoY to Rs 1,202.2 crore with revenue increasing 16.4% YoY to Rs 992.4 crore.

• Biocon’s subsidiary Biocon Biologics bags a three-year contract for its recombinant brand of human insulin, worth Rs 688.45 crore from Malaysia’s Health Ministry. Biocon Sdn. Bhd., the Malaysian subsidiary of Biocon Biologics will manufacture and supply the range of insulins.

Riding High:

Largecap and midcap gainers today include Ruchi Soya Industries Ltd. (1,035.80, 9.07%), Adani Transmission Ltd. (2,812.55, 7.52%) and Cholamandalam Investment & Finance Company Ltd. (764.00, 6.82%).

Downers:

Largecap and midcap losers today include Gland Pharma Ltd. (3,142.95, -4.57%), Atul Ltd. (9,358.00, -4.47%) and Laurus Labs Ltd. (572.10, -3.67%).

Volume Shockers

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

Top high volume gainers on BSE included Mahindra CIE Automotive Ltd. (223.55, 12.39%), Gujarat Alkalies & Chemicals Ltd. (1,028.75, 10.89%) and Ruchi Soya Industries Ltd. (1,035.80, 9.07%).

Top high volume losers on BSE were Atul Ltd. (9,358.00, -4.47%) and Procter & Gamble Hygiene & Healthcare Ltd. (13,822.55, -1.60%).

Endurance Technologies Ltd. (1,162.95, 3.28%) was trading at 14.0 times of weekly average. TVS Motor Company Ltd. (681.50, 4.95%) and Bombay Burmah Trading Corporation Ltd. (1,026.55, 8.87%) were trading with volumes 8.5 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks made 52-week highs, while 1 stock hit their 52-week lows.

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (909.50, 5.81%), Adani Power Ltd. (285.65, 5.00%) and Cholamandalam Investment & Finance Company Ltd. (764.00, 6.82%).

Stock making new 52 weeks lows included - Infibeam Avenues Ltd. (18.10, -2.43%).

25 stocks climbed above their 200 day SMA including Mahindra CIE Automotive Ltd. (223.55, 12.39%) and Ruchi Soya Industries Ltd. (1,035.80, 9.07%). 11 stocks slipped below their 200 SMA including Atul Ltd. (9,358.00, -4.47%) and Laurus Labs Ltd. (572.10, -3.67%).