Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising above 20%. Most Asian indices closed lower amid rising bond yields as investors await the global inflation print releases and monetary policy decisions by global central banks this week. However, Japan’s Nikkei index hit a two-month high boosted by auto stocks. US indices closed higher on Monday led by the tech-focused NASDAQ 100, which closed 0.4% higher. Crude oil edges higher and trades at elevated levels on expected demand revival in China after relaxing strict Covid lockdowns. European Indices trade in the red, tracking the Asian indices.

Nifty Next 50 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Realty closed lower than Monday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100 futures, which are trading in the red.

Nifty 50 closed at 16,416.35 (-153.2, -0.9%), BSE Sensex closed at 55,107.34 (-568.0, -1.0%) while the broader Nifty 500 closed at 13,935.60 (-118.5, -0.8%)

Market breadth is in the red. Of the 1,874 stocks traded today, 609 were on the uptick, and 1,214 were down.

• Shriram City Union Finance, Kalpataru Power Transmissions, Phoenix Mills, and CESC are trading with higher volumes as compared to Monday.

• Oil and Natural Gas Corp (ONGC) sees a long build-up in its Jun 30 futures series as its open interest rises 30.9% with put to call ratio at 0.44.

• Stocks like Symphony, Jindal Steel & Power, Rajesh Exports, Delta Corp, and JK Cement, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

• Zydus Lifesciences receives final approval from United States Food & Drug Administration (USFDA) to market adapalene and benzoyl peroxide topical gel. The gel is used to decrease the number and severity of acne pimples. The product is estimated to have a market size of $195 million.

• Aurobindo Pharma’s wholly-owned subsidiary, Eugia Pharma Specialties receives final approval from the United States Food & Drug Administration (USFDA) to manufacture and market Leuprolide Acetate Injection. The injection is used to treat the symptoms associated with advanced prostate cancer. The product is estimated to have a market size of $83 million and will be launched this month.

• HG Infra Engineering receives a contract worth Rs 4,971 crore from Adani Road Transport to develop an access-controlled six-lane greenfield Ganga Uttar Pradesh expressway of 151.7 kilometers.

• Chola Wealth Direct maintains a ‘Market Performer’ rating on Page Industries with a target price of Rs 44,530, indicating an upside of 4.5%. The brokerage believes the company’s revenue could see high growth on the back of a strong distribution reach, diverse product portfolio, and a loyal customer base. However, the brokerage sees rising raw material prices increasing margin pressure in the coming quarters. The brokerage expects the company’s revenue to grow at a 18.5% CAGR over FY22-24.

• Mangalore Refinery and Petrochemicals (MRPL), Chennai Petroleum Corp (CPCL), Bharat Petroleum Corp, among other downstream oil and gas sector stocks are trading higher. Singapore benchmark's gross refinery margin touches a record high of $ 25.2 per barrel, boosting confidence among investors and traders towards downstream oil and gas stocks.

• ICICI Lombard General Insurance Co. and Lux Industries touch 52-week low of Rs 1,151.6 and Rs 1,945. While ICICI Lombard General Insurance Co. is falling for five consecutive sessions, Lux Industries trades lower for three sessions.

• Consumer durable stocks like Havells India, Voltas, Whirlpool of India, Crompton Greaves Consumer Electronics and Dixon Technologies are falling in trade. The broader sectoral index BSE Consumer Durables is also trading in the red.

• Mangalore Refinery And Petrochemicals is trading with more than six times its weekly average trading volume. PB Fintech, Bajaj Holdings & Investment, Kalpataru Power Transmissions, and Oil India are trading at more than three times their weekly average trading volumes.

• Edelweiss maintains a ‘Buy’ rating on Zydus Wellness with a target price of Rs 2,271, indicating an upside of 46%. The brokerage remains positive on the company’s prospects due to its focus on distribution expansion, new launches, and rising sales volume. The brokerage expects the company’s net profit to grow at a 20.8% CAGR over FY22-24.

• Hindustan Aeronautics surges to hit an all-time as the Ministry of Defence approves the procurement of indigenous equipment worth Rs 76,390 crore. The equipment includes next-generation corvettes, armoured fighting vehicles and engines for the Sukhoi-30 MKI fleet.

• Realty stocks like Indiabulls Real Estate, DLF, Godrej Properties, Macrotech Developers, and Brigade Enterprises among others are falling in trade. The broader sectoral index Nifty Realty is also trading in red.

• Dish TV is falling as promoter entities World Crest Advisors LLP and Direct Media Distribution Ventures sold their stakes in the company to STCI Finance on Thursday. World Crest Advisors LLP reduces its stake to 0.05% from 0.56% and Direct Media Distribution Ventures reduces its stake to 0.56% from 2.09%.

• Oil India hits a five-year high of Rs 291 as the profit for Q4FY22 rises 93.3% YoY to Rs 1,630 crore. Brokerages like Prabhudas Lilladhar, HDFC Securities, and Motilal Oswal remain bullish on the stock and maintain a 'Buy' call. The stock is rising for seven consecutive days.

• Apollo Hospitals Enterprise and Adani Group to consider bidding for a majority stake in Metropolis Healthcare, according to reports. The deal could be worth $1 billion.

• As the Reserve Bank of India's Monetary Policy Committee starts its regular bi-monthly meeting, other global central banks are acting to curb broad-based inflation.

  Jumbo hike by the RBA to take rates to 0.85% and more to come!
  
  Jumbo hike by the RBI tomorrow too & consensus calling for 40bps but I think they might as well do a 50bps jumbo Australian style.
  
  Governments in Asia fighting inflation w/ hikes, fiscal, & all the tools available. https://t.co/KtCCQ9VEpg

  — Trinh (@Trinhnomics) June 7, 2022

• HLE Glascoat is rising as its board approves the sub-division of one equity share of the face value of Rs 10 each, into fully-paid up five equity shares of Rs 2 each. The company’s board also approves raising Rs 350 crore by issuing equity shares.

• Adani Enterprises receives approval to set up a hyper-scale data centre park at Bengal Silicon Valley on 51.75 acres of land, according reports.

• PB Fintech falls as the Chairman and CEO of the company, Yashish Dahiya intents to sell 37.7 lakh equity shares via bulk deals on the open market.

  PB Fintech - Policy Bazar bulk deal of 37 lakh shares done around Rs 615 per share
  
  Stock off days lows, promoters sold shares to fund ESOP buying
  
  Promoter said that they will not sell any shares for the next 1 year atleast

  — Yatin Mota (@YatinMota) June 7, 2022

• NMDC cuts prices of lump ore by Rs 1,100 to Rs 4,400 per tonne and fines by Rs 1,000 to Rs 3,300 per tonne, effective from June 5, 2022. The revised prices exclude royalty, district mineral fund, national mineral exploration trust, cess, forest permit fee, and other taxes. The company had last made a price revision on May 25, 2022.

Riding High:

Largecap and midcap gainers today include Oil And Natural Gas Corporation Ltd. (161.85, 5.13%), Honeywell Automation India Ltd. (32,627.00, 3.98%) and NHPC Ltd. (33.90, 2.42%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (237.80, -4.50%), Titan Company Ltd. (2,100.20, -4.47%) and Gujarat Gas Ltd. (527.80, -4.31%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mangalore Refinery And Petrochemicals Ltd. (108.60, 20.00%) and Kalpataru Power Transmissions Ltd. (365.10, 0.16%).

Top high volume losers on BSE were Gujarat Gas Ltd. (527.80, -4.31%), BEML Ltd. (1,328.20, -1.37%) and Bajaj Holdings & Investment Ltd. (4,979.85, -0.79%).

Oil India Ltd. (277.95, -0.34%) was trading at 5.6 times of weekly average.

BSE 500: highs, lows and moving averages

3 stocks overperformed with 52-week highs, while 19 stocks hit their 52-week lows.

Stocks touching their year highs included - Mangalore Refinery And Petrochemicals Ltd. (108.60, 20.00%), Oil India Ltd. (277.95, -0.34%) and Hindustan Aeronautics Ltd. (1,895.50, 0.41%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (516.30, -1.19%) and Birla Corporation Ltd. (860.45, -2.47%).

2 stocks climbed above their 200 day SMA including Tata Motors Ltd. (436.65, 0.99%) and ZF Commercial Vehicle Control Systems India Ltd. (7,839.35, 0.00%). 26 stocks slipped below their 200 SMA including Greaves Cotton Ltd. (150.55, -4.81%) and MRF Ltd. (71,490.00, -4.31%).