Trendlyne Analysis

Nifty 50 closed sharply higher with the Indian volatility index, India VIX falling by 7.3%. Asian indices closed higher amid positive cues from China as Shanghai reports three days of zero Covid community transmission, which could help lift the stringent lockdowns in the city. US indices closed lower on Monday led by the tech-heavy index, NASDAQ 100 which fell 1.2%. Investors continue to monitor the prevailing high inflation levels, tightening monetary policies, and geopolitical crisis in Europe. Crude oil steadies but continues to trade at elevated levels with the European Union’s plan to ban Russian oil on cards. European indices follow the global trend and trade higher than Monday’s levels.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Energy closed higher than Monday’s levels. Nifty IT closed higher despite the tech-focused index NASDAQ 100 falling 1.2% lower.

Nifty 50 closed at 16,259.30 (417, 2.6%), BSE Sensex closed at 54,318.47 (1,344.6, 2.5%) while the broader Nifty 500 closed at 13,926.05 (354.9, 2.6%)

Market breadth is ticking up strongly. Of the 1,877 stocks traded today, 1,615 showed gains, and 237 showed losses.

• Top diagnostic companies like Metropolis Healthcare and Dr. Lal Pathlabs see a short build-up in their May 26 futures series. Metropolis Healthcare futures’ put to call ratio is at 0.35 whereas Dr. Lal Pathlabs’ is at 0.53. Open interest increases close to 10% for both companies’ May 26 futures series.

• Easy Trip Planners, Timken India, Phoenix Mills, and SJVN are trading with higher volumes as compared to Monday.

• HDFC Asset Management Company and Aurobindo Pharma touch 52-week low of Rs 1,744.1 and Rs 539 respectively. Both stocks fall for two consecutive sessions.

• Wholesale Price Index (WPI) inflation rises 53 bps to 15.08% in April 2022 from 14.55% in March 2022. The high rate of inflation is due to a surge in the prices of mineral oils, basic metals, crude petroleum & natural gas, and food products, among others. The rise in food prices is because of an increase in the prices of edible oil and vegetables. WPI for the fuel and power segment is 38.66% and food is 8.35%.

• HDFC Securities initiates coverage on Apollo Tyres with an ‘Add’ rating and a target price of Rs 229. This indicates an upside of 8%. The brokerage has a positive outlook on the company on the back of its strong investments in research and development and focus on ramping up distribution in rural regions.

• Paradeep Phosphates’ Rs 1,501.7-crore IPO gets bids for 29% of the available 26.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 57% of the available 13.1 crore shares on offer. The offer comprises entirely of a fresh issue of Rs 1,501.7 crore.

• SJVN inks an agreement to develop 490 MW Arun-4 project in Nepal worth Rs 4,900 crore. The Project will be developed in a joint venture with Nepal Electricity Authority. The project is expected to generate around 2,100 million units of energy per annum.

• Dodla Dairy is rising as its Q4FY22 profit jumps 4.2 times YoY to Rs 40.5 crore and revenues rise 11.4% to Rs 594 crore. Net profit rises mainly due to a deferred tax credit of Rs 12.4 crore. The company’s net profit rises 5.3% YoY in FY22 to Rs 132.8 crore and revenues increase by 15.7% to Rs 1,950.4 crore.

• Glenmark Life Sciences is trading with more than seven times its weekly average trading volume. Indoco Remedies, Multi Commodity Exchange of India, GlaxoSmithKline Pharmaceuticals, and Bajaj Electricals are trading at more than three times their weekly average trading volumes.

• HDFC Asset Management (HDFC AMC) touches a new 52-week low of Rs 1,744.1 but recovers to trade in the green. The stock sees a long build-up in its May 26 futures series as its open interest rises 2.3%. However, its put to call ratio is at 0.5. HDFC AMC is also in the oversold zone according to the technical indicator, relative strength index or RSI.

• Multi Commodity Exchange of India's Q4FY22 profit falls 5% YoY to Rs 36.5 crore despite an increase in revenue by 11.6% YoY to Rs 121 crore. The profit falls as the company spends Rs 20.4 crore on the development of an intangible asset that has been discontinued and the entire expenditure has been impaired. In FY22, profit falls 36.3% to Rs 143.45 crore.

• Stocks like Bajaj Auto, Britannia Industries, Havells India, and Tata Elxsi, among others, are outperforming their sector over the past month.

• Vishnu Chemicals’ Q4FY22 net profit rises 162.3% YoY to Rs 28.6 crore and revenue rises 56.3% YoY to Rs 335.6 crore on the back of a better product mix and a rise in exports. EBITDA margin rises by 381 bps YoY to 15.8% and exports rise 76.9% YoY to Rs 175.2 crore.

• Tata Power partners with Hyundai Motor India to build an EV charging network and accelerate the adoption of EVs across India. Under the partnership, Tata Power will install EZ charge fast chargers at Hyundai's existing 34 EV dealer locations across 29 cities along with supply, installation, and commissioning of home charging for Hyundai's EV customers.

• Commodity stocks like Reliance Industries, SRF, Deepak Nitrite and Tata Steel , among others are rising in trade. The broader sectoral index Nifty Commodities is also trading in green.

• Nifty 50 sees a long build-up in its May 26 futures series as its open interest rises 2.7% with put to call ratio at 0.95.

• Indian rupee falls to an all-time low of Rs 77.63 against the US dollar as foreign investors continue to sell domestic stocks. Foreign investors sold Rs 11,289.6 crore worth of Indian shares in the last week.

• VIP Industries posts a net profit of Rs 12.4 crore in Q4FY22 as opposed to a loss of Rs 3.8 crore in Q4FY21. Revenue rises 39.5% YoY to Rs 361.7 crore and operating margin rises by 7.8 percentage points YoY to 9.1%. In FY22, the company posts a profit of Rs 66.9 crore as opposed to a loss of Rs 97.5 crore a year ago and revenue rises 98.8% YoY to Rs 1,325.9 crore.

• KEC International bags orders worth Rs 1,147 crore across various business verticals. The order wins include transmission and distribution projects in the Americas and the Middle East, a diverse set of civil and railway projects in India, and cabling orders from the Middle East and India.

• Life Insurance Corporation of India (LIC) shares list at 8.1% discount to the issue price of Rs 949 on its debut on the bourses after getting bids for 3X of total shares on offer.

• GlaxoSmithKline Pharmaceuticals is rising as its profit rises to Rs 1,219 crore against Rs 14.3 crore in the same quarter previous year. However, revenues fall 1.8% YoY in Q4FY22 to Rs 828 crore. Profit increases multifold mainly due to profit from discontinued operations amounting to Rs 1,652.2 crore. This is due to transfer of trademarks pertaining to Iodex and Ostocalcium brands in India to GlaxoSmithKline Asia.

• Raymond’s Q4FY22 net profit rises more than 4X YoY to Rs 263.3 crore and revenue rises 44.3% YoY to Rs 2,031.7 crore. Revenue grows on the back of robust consumer demand for branded apparel and branded textiles driven by the wedding season and the opening up of offices. EBITDA margin rises by 364 bps YoY to 17.6% due to higher revenue.

Riding High:

Largecap and midcap gainers today include Vedanta Ltd. (321.00, 11.79%), Hindalco Industries Ltd. (428.40, 9.58%) and Oil India Ltd. (241.55, 8.46%).

Downers:

Largecap and midcap losers today include Aurobindo Pharma Ltd. (535.65, -2.80%), Dalmia Bharat Ltd. (1,413.70, -1.48%) and Dr. Lal Pathlabs Ltd. (2,184.60, -0.99%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Affle (India) Ltd. (1,108.80, 14.68%), Sterlite Technologies Ltd. (179.80, 13.19%) and Shyam Metalics and Energy Ltd. (329.05, 9.99%).

Top high volume loser on BSE was Amber Enterprises India Ltd. (2,679.95, -0.87%).

Indoco Remedies Ltd. (350.45, 5.54%) was trading at 14.2 times of weekly average. Bajaj Electricals Ltd. (998.75, 9.13%) and Multi Commodity Exchange of India Ltd. (1,211.90, 2.87%) were trading with volumes 12.1 and 7.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks tanked below their 52-week lows.

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (535.65, -2.80%) and JK Lakshmi Cement Ltd. (394.75, 0.27%).

20 stocks climbed above their 200 day SMA including Angel One Ltd. (1,462.60, 9.98%) and Elgi Equipments Ltd. (323.30, 8.13%). 3 stocks slipped below their 200 SMA including Escorts Ltd. (1,618.85, -1.61%) and ZF Commercial Vehicle Control Systems India Ltd. (7,596.55, -1.19%).