Trendlyne Analysis

Indian indices ended the week in red amid weak global cues. Asian indices closed lower, tracking the US indices which closed sharply lower on Thursday. The tech-heavy US index NASDAQ 100 shed over 5% as investors continue to digest the US Federal Reserve’s rate hike and commentary by its Chairman Jerome Powell on Wednesday. The Bank of England hiked its interest rate to 1% on Thursday as it handed down its policy decision and also warned of the possibility of double-digit inflation, a prolonged period of stagflation, or even recession. Crude oil continues to trade at elevated levels as the European Union plans to ban Russian oil in six months. European indices follow the global trend and open lower than Thursday’s levels.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Auto and Nifty Media closed lower than Thursday’s levels. Nifty IT also closed in the red, taking cues from the tech-focused NASDAQ 100, which fell over 5% on Thursday.

Nifty 50 closed at 16411.25 (-271.4, -1.6%) , BSE Sensex closed at 54,835.58 (-866.7, -1.6%) while the broader Nifty 500 closed at 14,145.75 (-249.8, -1.7%)

Market breadth is highly negative. Of the 1,858 stocks traded today, 314 were on the uptrend, and 1,523 went down.

• Pfizer, Varun Beverages, Bayer Cropscience, and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Thursday.

• Delivery volumes of stocks like Route Mobile, Ashok Leyland, Dalmia Bharat, and Cipla, among others, are rising ahead of their Q4FY22 results to be announced over the next two weeks.

• ICICI Securities re-initiates coverage on Reliance Industries with an ‘Add’ rating and a target price of Rs 2,960, indicating an upside of 12%. The brokerage expects robust profit growth for the company over FY22-24 driven by favourable OTC (oil to chemicals) market conditions, steady growth in digital services, and strong momentum in its retail segment.

• Adani Wilmar hits the lower circuit during trade, falls for six trading sessions

• Canara Bank’s Q4FY22 net profit rises 38.6% YoY to Rs 1,918.8 crore and revenue rises 5.3% YoY to Rs 24,518.4 crore driven by growth in the treasury operations segment. Net interest income rises 24.8% YoY to Rs 7,005 crore and the net NPA (non-performing assets) ratio falls by 117 bps YoY to 2.6%.

• Life Insurance Corporation of India’s Rs 21,008.4-crore IPO gets bids for 1.4X of the available 16.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.2X of the available 6.9 crore shares on offer.

• Motilal Oswal maintains a ‘Buy’ rating on Eris Lifesciences with a target price of Rs 870, indicating an upside of 30%. The brokerage remains positive about the company on the back of its acquisition of Oaknet Healthcare, allowing the company to foray into dermatology segment. Motilal Oswal expects the company’s revenue to grow at 21.7% CAGR over FY22-FY24.

• The Fertilisers and Chemicals Travancore is trading with more than 12 times its weekly average trading volume. Krishna Institute of Medical Sciences, Coforge, Blue Star, and Hikal are trading at more than six times their weekly average trading volumes.

• Stocks like Bajaj Finance, Apollo Hospitals Enterprise, Alkem Laboratories, ICICI Securities, and Jindal Stainless, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

• Nazara Technologies and Wipro touch 52-week low of Rs 1,376 and Rs 477.8 respectively. Both stocks are falling for three consecutive sessions.

• Solar Industries India (including subsidiaries) and Premier Explosives receive orders from Singareni Collieries Company for the supply of site mixed emulsion explosives, large-diameter cartridge explosives, and other accessories for blasting. Solar Industries India's order is worth Rs 1,563 crore while Premier Explosives order is worth Rs 104.8 crore.

• Metal stocks like JSW Steel, Tata Steel, Vedanta, Hindustan Zinc, and Hindalco Industries, among others are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

• DCM Shriram’s Q4FY22 profit rises 73% YoY to Rs 401.2 crore and revenues increase by 30.6% to Rs 2,901.6 crore. The company’s sugar segment revenue rises 32.8% YoY in Q4FY22 to Rs 832.3 crore. Net profit rises 58.5% YoY in FY22 to Rs 1,067.4 crore and revenues increase by 18.3% YoY to Rs 8,400.2 crore.

• Marico’s Q4FY22 net profit rises 14.6% YoY to Rs 251 crore and revenue rises 7% YoY to Rs 2,185 crore on the back of growth in the international business segment. The revenue from the international business segment rises 12% YoY to Rs 507 crore and the India business segment rises 5% YoY to Rs 1,654 crore.

• Happiest Minds Technologies’ Q4FY22 net profit rises 6.5% QoQ to Rs 52.1 crore and revenue rises 6.2% QoQ to Rs 310.5 crore. The maximum revenue growth came from the product engineering services (PES) and infrastructure management and security services (IMSS) segments at 6.5% QoQ and 8.3% QoQ, respectively. EBITDA rises 6.1% QoQ to Rs 81.6 crore and attrition rises by 160 bps QoQ to 22.7%.

• Sona BLW Precision Forgings' Q4FY22 net profit jumps 75% YoY to Rs 105 crore despite revenues rising just 2% YoY to Rs 550 crore. Profit rises due to one-time adjustments made in the Q4FY21 and Q4FY22 numbers. The battery electric vehicle division reports a 2X YoY rise in Q4 revenues and company also wins new orders worth Rs 2,000 crore for the same.

• Oil prices fall as speculation of an economic downturn dampens the demand for crude oil. New sanctions against Russia by the European Union add to the woes. Brent futures fell 0.3% to $110.53 per barrel today. Oil and gas stocks like ONGC, Hindustan Oil Exploration, among others, fall in trade today.

• TVS Motors' Q4FY22 net profit falls over 10% YoY to Rs 278 crore while its operating revenues rise 7.4% YoY to Rs 6,585.2 crore. Revenues rise on the back of healthy sales realizations despite its volumes falling 8% YoY in Q4FY22. However, higher input costs and semi-conductor shortages hit TVS Motors' profitability

• Voltas is falling as its Q4FY22 net profit falls 23.2% YoY to Rs 182.7 crore. Total revenues stay flat at Rs 2,703 crore on the back of low demand for its unitary cooling products. Net profit falls 4% YoY to 504.1 crore but revenues increase by 4.9% to Rs 8,123 crore.

• Blue Star’s Q4FY22 net profit rises 12% YoY to Rs 76.2 crore and revenues increase by 36.5% to Rs 2,253.8 crore. Electro-mechanical and commercial air conditioning systems segment revenue rises 45.7% YoY to Rs 1,136 crore on the back of strong demand. Net profit rises 67% YoY in FY22 to Rs 167.7 crore and revenues increase by 40.5% to Rs 6,081 crore.

• Ceat’s Q4FY22 net profit falls 84% YoY to Rs 25 crore as total expenses rise 19% YoY to Rs 2,570.6 crore. The rise in total expenses is because of an increase in the cost of materials by 22.3% YoY to Rs 1,768.4 crore. However, revenue from operations rises 13.2% YoY to Rs 2,591.9 crore.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (292.05, 5.00%), NHPC Ltd. (33.75, 4.17%) and Hero MotoCorp Ltd. (2,563.35, 2.47%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (360.40, -11.06%), Cholamandalam Investment & Finance Company Ltd. (636.85, -10.97%) and Voltas Ltd. (1,069.30, -7.62%).

Volume Shockers

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

Top high volume gainers on BSE included CSB Bank Ltd. (227.85, 9.97%), Dhanuka Agritech Ltd. (702.45, 2.76%) and Happiest Minds Technologies Ltd. (1,003.00, 1.29%).

Top high volume losers on BSE were Cholamandalam Investment & Finance Company Ltd. (636.85, -10.97%), Coforge Ltd. (3,905.40, -6.38%) and Sobha Ltd. (558.40, -6.20%).

Krishna Institute of Medical Sciences Ltd. (1,254.75, -4.03%) was trading at 11.3 times of weekly average. Heidelberg Cement India Ltd. (189.90, -0.94%) and Blue Star Ltd. (1,071.95, -1.83%) were trading with volumes 10.0 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks hit their 52 week lows.

Stocks making new 52 weeks lows included - 3M India Ltd. (18,449.95, -0.52%) and Indus Towers Ltd. (198.90, -1.58%).

3 stocks climbed above their 200 day SMA including Vinati Organics Ltd. (1,969.05, 3.16%) and ABB India Ltd. (2,254.20, 1.49%). 36 stocks slipped below their 200 SMA including Deepak Nitrite Ltd. (2,028.60, -6.11%) and Torrent Power Ltd. (493.45, -5.65%).