Trendlyne Analysis

Nifty 50 fell over 300 points from the day’s high and closed marginally lower due to heavy selling pressure towards the end of the trading session. Major Asian indices closed higher after US indices closed marginally lower on a volatile day of trade. However, US equity futures rose after the US Federal Reserve Chairman Jerome Powell pushed back against speculation of a 75 bps hike in its next two meetings. Powell reaffirmed that the US Fed is likely to raise the federal funds rate by half a percentage point and isn’t actively considering a 75 bps hike. Crude oil rises but is set to post a decline for the week. The prospect of European Union ban on Russian oil shortening supply and demand concerns from weaker global growth is affecting crude oil prices. Retail inflation in India rose to 7.79% in April against 6.95% in March mainly due to higher edible oil and fuel prices. European indices follow the global trend and trade higher than Thursday’s levels.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green despite the benchmark index closing lower. Nifty PSU Bank, which lost over 3% on Thursday, closed flat. Nifty Pharma and Nifty FMCG closed higher than Thursday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which also closed lower on Thursday.

Nifty 50 closed at 15,782.15 (-25.9, -0.2%), BSE Sensex closed at 52,793.62 (-136.7, -0.3%) while the broader Nifty 500 closed at 13,471.50 (6.3, 0.1%)

Market breadth is highly positive. Of the 1,870 stocks traded today, 1,298 were in the positive territory and 541 were negative.

• Mahindra CIE Automotive, EPL, Timken India, and ZF Commercial Vehicle Control Systems India are trading with higher volumes as compared to Thursday.

• State Bank of India sees a short build-up in its May 26 futures series as its open interest rises 20.9% with put to call ratio at 0.4.

• Delhivery’s Rs 5,235-crore IPO gets bids for 1.6X of the available 6.2 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 57% of the available 1.1 crore shares on offer.

• Zydus Lifesciences rises as it is set to launch Bemdac (Bempedoic acid), a new drug, for the first time in India. This drug will aid in treating uncontrolled LDL (low-density lipoprotein) or 'Bad' cholesterol for patients and falls under the cardiac segment.

• State Bank of India's Q4FY22 profit rises 41.3% YoY to Rs 9,114 crore and net interest income rises 15.3% YoY to Rs 31,198 crore. In FY22, the bank's profit rises 55.2% to Rs 31,676 crore.

• Venus Pipes and Tubes’ Rs 165.4-crore IPO gets bids for 16.3X of the available 35.5 lakh shares on offer on the final day of bidding. The retail investor quota gets bids for 19X of the available 17.7 lakh shares on offer.

• Life Insurance Corporation of India’s shares quotes a discount of Rs 25 in the grey market today. LIC IPO GMP (grey market premium) is trading in the negative zone for three consecutive sessions. The IPO is likely to list on May 17.

• HDFC Securities maintains an ‘Add’ rating on Torrent Power with a target price of Rs 501, indicating an upside of 13.8%. The brokerage has a positive outlook on the company due to higher demand, and improved collections efficiencies across its distribution business. The brokerage expects the company’s revenue to grow at a CAGR of 4.8% over FY22-24.

• Nifty 50 was trading at 16,076.35 (268.4, 1.7%), BSE Sensex was trading at 53,615.66 (685.4, 1.3%) while the broader Nifty 500 was trading at 13,733.35 (1.99%).

• Market breadth is surging up. Of the 1,856 stocks traded today, 1,618 were gainers and 213 were losers.

• IFB Industries is trading with more than ten times its weekly average trading volume. Hatsun Agro Products, CreditAccess Grameen, Honeywell Automation India, and RHI Magnesita India are trading at more than three times their weekly average trading volumes.

• FMCG stocks like Hindustan Unilever, United Breweries, Godrej Consumer Products and Tata Consumer Products, among others are rising in trade. The broader sectoral index Nifty FMCG is also trading in green.

• Stocks like InterGlobe Aviation, Pidilite Industries, Bank of Baroda, Gland Pharma, and MindTree, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

• Aditya Birla Capital’s Q4FY22 net profit rises 20% YoY to Rs 450.3 crore and revenue rises 18.4% YoY to Rs 6,620.1 crore driven by growth in loan book and customer base. In FY22, net profit rises 51.4% YoY to Rs 1,705.9 crore and revenue rises 15.4% YoY to Rs 22,241.3 crore.

• Anupam Rasayan India is rising as Q4FY22 profit rises 108% YoY to Rs 46.1 crore and revenue rises 17% YoY to Rs 317.2 crore million driven by a volume ramp-up. In FY22, the company's profit rises 116% to Rs 152.2 crore

• RBL Bank rises as its Q4FY22 net profit surges 164% YoY to Rs 198 crore with net interest income rising 25% YoY to Rs 1,131 crore. However, net interest margin increases 87 bps to 5.04%. Provisions declined 36.1% YoY to Rs 400.6 crore. Asset quality improvement is a mix as gross NPAs increase marginally by 6 bps to 4.4%, but net NPAs fall 78 bps YoY to 1.34%.

• Matrimony. com is rising as its Q4FY22 net profit rises 15.6% YoY to Rs 11.7 crore. Revenue rises 10.7% YoY to Rs 116.3 crore on the back of strong demand in its matchmaking and marriage services. Net profit rises 31.4% YoY in FY22 to Rs 53.2 crore and revenues increase by 14.4% to Rs 452.4 crore.

• Brigade Enterprises’ Q4FY22 net profit falls 17.9% YoY to Rs 32.5 crore while revenues rise 17.5% to Rs 964.7 crore. Leasing revenue rises 51.2% YoY to Rs 179.8 crore and Real estate revenue rises 10.8% YoY to Rs 711.6 crore. However, net profit falls due to an increase in finance costs and sub-contractor costs.

• Nifty 50 sees a short covering in its May 26 futures series with its open interest falling by 1.5% and put to call ratio at 0.83.

• Seimens' Q4FY22 net profit rises marginally by 2% YoY to Rs 340 crore while revenues rise 13.5% YoY to Rs 4,021.5 crore. Revival in public and private capex fuels order growth for Siemens, while its mobility segment gets high value orders during the quarter. Higher commodity and logistics costs impact company's earnings growth in Q4.

• Consumer Price Index (CPI) inflation rises 84 bps to 7.79% in April 2022 from March 2022 data of 6.95%. The sharp rise is because of a surge in fuel prices and food items. The rise in food prices is because of an increase in prices of edible oil and vegetables as the wheat output may fall this year. CPI for the fuel and light segment is 10.8% and food is 8.38%.

• Tata Motors’ Q4FY22 net loss narrows by 86.4% to Rs 1,032.8 crore but revenues fall by 11.2% to Rs 79,341.6 crore. The company’s arm Jaguar Land Rover’s (JLR) revenue decreases by 7% YoY in FY22 to Pound 18.3 billion due to supply-side constraints arising from the global semiconductor chip shortage.

• Larsen & Toubro’s Q4FY22 net profit rises 9.9% YoY to Rs 3,620.7 crore and revenue rises 8.6% YoY to Rs 53,366.3 crore driven by robust order inflows. The company’s order inflow grows 46% YoY to Rs 73,941 crore. However, the operating margin falls by 95 bps YoY to 12.3% due to a rise in fuel costs and raw material costs.

• Apollo Tyres’ Q4FY22 net profit drops 61% YoY to Rs 113 crore despite internal cost control measures and multiple price hikes. Cost of materials for the company shoot up by 29.5% YoY to Rs 3,110.7 crore. However, revenue increases 10.9% to Rs 5,578.3 crore with maximum revenue growth in coming in from Europe. Revenue rises 19.9% to Rs 1,684.7 crore. The company recommends a dividend of Rs 3.25 per share.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (7,886.65, 14.56%), Tata Motors Ltd. (404.30, 8.60%) and Indraprastha Gas Ltd. (372.65, 7.72%).

Downers:

Largecap and midcap losers today include Adani Green Energy Ltd. (2,171.55, -10.89%), Indus Towers Ltd. (182.85, -9.28%) and Oracle Financial Services Software Ltd. (3,230.70, -7.70%).

Volume Rockets

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

Top high volume gainers on BSE included Poonawalla Fincorp Ltd. (248.05, 14.57%), Tata Elxsi Ltd. (7,886.65, 14.56%) and IFB Industries Ltd. (944.75, 11.39%).

Top high volume losers on BSE were Hatsun Agro Products Ltd. (856.20, -13.66%), Honeywell Automation India Ltd. (34,332.15, -7.61%) and Emami Ltd. (427.70, -5.11%).

CreditAccess Grameen Ltd. (927.90, 5.48%) was trading at 6.6 times of weekly average. Ujjivan Small Finance Bank Ltd. (17.55, 9.01%) and RHI Magnesita India Ltd. (544.10, 1.62%) were trading with volumes 4.4 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks tanked below their 52-week lows.

Stocks making new 52 weeks lows included - Akzo Nobel India Ltd. (1,764.50, 0.34%) and Aurobindo Pharma Ltd. (562.55, -1.44%).

24 stocks climbed above their 200 day SMA including Poonawalla Fincorp Ltd. (248.05, 14.57%) and Mahindra Holidays & Resorts India Ltd. (233.25, 7.86%). 10 stocks slipped below their 200 SMA including DCM Shriram Ltd. (992.10, -5.62%) and IIFL Wealth Management Ltd. (1,456.85, -3.89%).