Trendlyne Analysis

Nifty 50 recovered from the day’s low and closed flat on a volatile day of trade. However, most Asian indices closed in the green as China eased Covid-19 lockdowns offering hope for a global economic recovery. Major US indices closed in the red on Friday led by the tech-heavy NASDAQ 100, which fell over 2.7%. US stocks fell as a strong US job report released on Friday, allows the US Federal Reserve to maintain its aggressive stance on inflation. Saudi Arabia raises crude oil prices for its Asian customers starting July leading to a rise in crude oil prices globally. European indices trade higher than Friday’s levels ahead of key inflation print releases this week.

Nifty Smallcap 100 closed lower despite the benchmark index closing flat. Nifty Media closed lower while Nifty Metal closed higher than Friday’s levels. Nifty IT closed in the red, tracking the tech-focused NASDAQ 100, which fell 2.7% on Friday.

Nifty 50 closed at 16,569.55 (-14.8, -0.1%), BSE Sensex closed at 55,675.32 (-93.9, -0.2%) while the broader Nifty 500 closed at 14,054.10 (-23.8, -0.2%)

Market breadth is in the red. Of the 1,904 stocks traded today, 700 were gainers and 1,145 were losers.

• Galaxy Surfactants, J B Chemicals & Pharmaceuticals, Kansai Nerolac Paints, and Equitas Small Finance Bank are trading with higher volumes as compared to Friday.

• Rain Industries sees a long build-up in its Jun 30 futures series as its open interest rises 11% with put to call ratio at 0.38.

• Stocks like ICICI Bank, ITC, HCL Technologies, Hindustan Unilever, Larsen & Toubro, and Titan Company, among others, are outperforming their respective sectors in the past month.

• Prabhudas Lilladher upgrades rating on Aarti Industries from ‘Hold’ to ‘Accumulate’ with a target price of Rs 880, indicating an upside of 22%. The brokerage expects the company’s revenue growth to be driven by increasing capacity utilization, rising domestic demand and import substitution. The brokerage expects the company’s revenue to grow at an 18% CAGR over FY22-24.

• Stocks like Hemisphere Properties India, Thyrocare Technologies, Indoco Remedies and Oil India rise by more than 5% in trade today.

• Tata Motors receives an order for the supply of 10,000 XPRES-EV (electric vehicle) units from BluSmart Electric Mobility, according to reports.

• Kolte-Patil Developers partners with Tata Power to set up charging stations across its projects in Pune, Mumbai, and Bengaluru. Tata Power will provide seamless EV (electric vehicle) charging facilities to the residential customers of Kolte-Patil Developers.

• Hem Securities initiates coverage on Agarwal Industrial Corp with a ‘Buy’ rating and a target price of Rs 705, indicating an upside of 32%. The brokerage believes the company is well-placed to benefit from the rise in infrastructure spending given its fully integrated business model and market leadership in bitumen transportation with a market share of 28%. The brokerage expects the company’s profit to grow at a 22.5% CAGR over FY22-24.

• Vijaya Diagnostic Centre and Aptus Value Housing Finance India touch an all-time low of Rs 345.1 and Rs 270.3 respectively. Both stocks are falling for two consecutive sessions.

• PVR and Inox Leisure fall as investors worry about a decrease in footfall as Covid-19 infections rise, according to reports. The Maharashtra government makes the wearing of masks compulsory in public places after the number of cases increase by 54% in the last 24 hours.

• Glenmark Life Sciences is trading with more than 11 times its weekly average trading volume. Thyrocare Technologies, Aegis Logistics, Galaxy Surfactants, and Garware Technica Fibres are trading at more than 2 times their weekly average trading volumes.

• Aditya Birla Group set to invest Rs 77,000 crore towards building new capacity and entering new sectors.

  With metals major #Hindalco leading the pack, the Aditya Birla group would be investing a massive Rs 77,000 crore in creating new capacities and entering new sectors such as paints. @ParagonWorli18 reports #AdityaBirla #Companies https://t.co/rwRPFrzxCr

  — Business Standard (@bsindia) June 6, 2022

• Oil India rises after Kotak Institutional Equities upgrades the stock to ‘Add’ from ‘Sell’ with a target price of Rs 285, indicating an upside of 10.7%. The upgrade is on the assumption of elevated oil and gas prices in FY23-24. It raises its operating profit estimates for Oil India by 71% for FY23 and 83% for FY24.

• Cyient’s arm Cyient Europe acquires a 100% stake in Celfinet for a total cash consideration of euro 41 million (Rs 341.4 crore). Celfinet is a wireless engineering and network management services provider based out of Lisbon, Portugal. The company expects the acquisition to improve its wireless engineering services and expand its presence in Europe.

• Larsen & Toubro wins an order worth Rs 2,500-5,000 crore from the Municipal Corporation of Greater Mumbai to set up the Bandra wastewater treatment. The project involves designing, building, operating and maintaining the 360 million litres per day sewage treatment plant, which will also have an inhouse power generator.

• All media stocks are trading in the red. Stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Network 18 Media & Investments, Saregama India, TV 18 Broadcast and Inox Leisure are falling below 2%. The broader sectoral index Nifty Media is also trading in the red.

• Adani Transmission enters into a share purchase agreement with Essar Power to acquire a 100% stake in Essar Power Transmission for a total consideration of Rs 1,913 crore. The company expects this acquisition to expand its transmission line network, and reduce operational costs.

• Vehicle retail sales in May 2022 rises 206.8% YoY to 16.5 lakh units. Two-wheeler sales rise 197.7% YoY to 12.2 lakh units and three-wheeler sales rise 695.9% YoY to 41,508 units. Passenger vehicle sales rise 204% to 2.6 lakh units and commercial vehicle sales rise 278% YoY to 66,632 units. Hero Motocorp's market share falls to 37.6% from 47%, and TVS Motor's and Bajaj Auto's market share fall marginally to 13.9% and 10.1%, respectively.

• The Centre directs Coal India to import 12 million tonnes of coal to avoid a shortage of coal stock for power utility companies. Coal India will import coal for the next 13 months to meet the demand of power supply companies.

• Zydus Lifesciences receives final approval from the United States Food and Drug Administration (USFDA) to market Famotidine tablets in the strengths of 20mg and 40mg. This drug is used to prevent and treat heartburn and other symptoms caused by acid indigestion. This drug has a market size of $67 million and will be manufactured at the company’s drug formulation facility in Ahmedabad.

• NTPC awards multiple contracts to Adani Enterprises to import 6.25 million tonnes of coal worth Rs 6,585 crore, according to reports. The power generating company is importing coal to meet the new target given by the Union power ministry to blend 10% imported coal to deal with the domestic coal shortage.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (278.90, 11.14%), Adani Power Ltd. (298.30, 5.00%) and Bajaj Auto Ltd. (3,817.00, 3.93%).

Downers:

Largecap and midcap losers today include Coforge Ltd. (3,606.85, -4.08%), Berger Paints (India) Ltd. (589.90, -3.12%) and Shree Cements Ltd. (20,002.70, -3.08%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Oil India Ltd. (278.90, 11.14%), Thyrocare Technologies Ltd. (670.50, 5.80%) and Indoco Remedies Ltd. (380.00, 4.89%).

Top high volume losers on BSE were V Mart Retail Ltd. (2,900.00, -6.66%), Anupam Rasayan India Ltd. (649.55, -4.75%) and Akzo Nobel India Ltd. (1,785.00, -0.60%).

Dhanuka Agritech Ltd. (710.05, 1.03%) was trading at 5.6 times of weekly average. Aegis Logistics Ltd. (228.65, 2.28%) was trading with volume 3.5 times weekly average on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52-week highs, while 19 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Oil India Ltd. (278.90, 11.14%) and Sumitomo Chemical India Ltd. (484.10, 4.87%).

Stocks making new 52 weeks lows included - Biocon Ltd. (318.70, -0.50%) and Birla Corporation Ltd. (882.25, -4.36%).

10 stocks climbed above their 200 day SMA including Adani Transmission Ltd. (2,017.10, 3.12%) and ZF Commercial Vehicle Control Systems India Ltd. (7,839.15, 2.85%). 18 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.25, -9.34%) and Greaves Cotton Ltd. (158.15, -4.41%).