Trendlyne Analysis

Nifty 50 closed in the green with the volatility index, India VIX, falling by 3.5%. Indian indices fell on Wednesday after the Reserve Bank of India (RBI) increased the repo rate by 50 bps to 4.9% as it withdrew its ‘accommodative stance’ for economic growth. Most Asian indices closed lower, tracking the US indices, which closed in the red on Wednesday. US 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. Brent crude oil rises above $123 per barrel and hits a 13-week high as the commodity’s demand is expected to rise with easing lockdowns in China. European indices follow the global trend and trade lower than Wednesday’s levels.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty FMCG and Nifty Pharma, which opened lower, also closed in the green. Nifty IT closed higher despite the tech-heavy NASDAQ 100 falling by 0.8% on Wednesday.

Nifty 50 closed at 16,478.10 (121.9, 0.7%), BSE Sensex closed at 55,320.28 (427.8, 0.8%) while the broader Nifty 500 closed at 13,977.10 (90.2, 0.7%)

Market breadth is neutral. Of the 1,867 stocks traded today, 922 were on the uptick, and 889 were down.

• Supreme Industries, Krishna Institute of Medical Sciences, Grindwell Norton, and Indigo Paints are trading with higher volumes as compared to Wednesday.

• Reliance Industries sees a long build-up in its Jun 30 futures series as its open interest rises 3.4% with put to call ratio at 0.68.

• Shares of UPL reverse a 1% loss and gain nearly 2% after the company announces launch of new insecticides in India with patented active ingredient Flupyrimin.

• Stocks like Aditya Birla Sun Life AMC, Aptus Value Housing Finance India, Birla Corporation, Symphony, and Amber Enterprises India are in the oversold zone according to the technical indicator relative strength index or RSI.

• Dalmia Bharat expects cement demand to increase on the back of rising capital expenditure by the government and through PLI schemes. The company is committing to a capex of Rs 9,000 crore to expand manufacturing capacity over the next few years, to meet growing demand.

• SBI Cards and Payment Services and One97 Communications (Paytm) fall in trade today after the Reserve Bank of India allows the linking of credit cards to UPI platforms. Analysts from Axis Securities expect this move to favor credit card issuers more as it would increase spending and boost credit-card usage in the long run.

• Gujarat State Petronet and Nuvoco Vistas Corporation touch their 52-week lows of Rs 237.8 and Rs 282 respectively. While, Gujarat State Petronet trades lower for four days, Nuvoco Vistas Corporation falls for five consecutive days.

• Tata Power's arm Tata Solar Power Systems commissions 450 megawatts dc capacity solar pant for Brookfield Renewable India. The project will produce over 800 gigawatt-hours of clean energy annually.

• Strides Pharma Science is trading with more than four times its weekly average trading volume. Krishna Institute of Medical Sciences, Computer Age Management Services, United Breweries, and Amber Enterprises India are trading at more than two times their weekly average trading volumes.

• BOB Capital Markets maintains a ‘Buy’ rating on Polycab India with a target price of Rs 3,000, indicating an upside of 24%. The brokerage remains positive on the company’s prospects given its robust balance sheet, high growth in all its business segments, and expanding distribution network. The brokerage expects the company’s revenue to grow at a 15.1% CAGR over FY22-24.

• Sugar exports increase 22.9% YoY to 8.6 million tonnes till May 2022 (the ongoing marketing year, ending September). Last month, the Centre capped sugar exports to 10 million tonnes to ensure domestic supply and keep a check on retail prices. Sugar stocks like Shree Renuka Sugars, EID Parry (India), Balrampur Chini Mills among others continue to fall in trade.

  Now, Massive oversupply seen in SUGAR by ISMA
  
  This higher production and now export restrictions would mean sugar prices might come down in domestic market
  
  Sugar stocks under pressure! https://t.co/f4X2Rm5AsF

  — Yatin Mota (@YatinMota) June 8, 2022

• Deepak Nitrite touches a 52-week low after reports emerge of the Gujarat Government issuing a closure notice to the company. This is in connection to the fire incident at the Nandeswari plant.

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

• Coal India floats their maiden international competitive bidding e-tender, seeking bids for the import of 2.41 million tonnes of coal. The coal is being sourced on behalf of the state generating companies and independent power plants for the July-September period of the current fiscal year.

• LIC drops to a new all-time low today after another decline of 0.95%.

• Vedanta pledges a 5.77% stake in Hindustan Zinc for a term loan of Rs 8,000 crore. The company’s earlier pledge of a 14.82% stake in Hindustan Zinc to secure a term loan facility of Rs 10,000 crore has been released.

• Shares of MRPL gained nearly 5%, on course to rise for the 5th consecutive day while ONGC gained more than 2% in a weak market. Oil India went up 7% whereas BPCL and HPCL declined. This rise comes amid increase in brent crude prices going above $124 per barrel and WTI crude prices above $122 per barrel.

• Paints stocks like Asian Paints, Berger Paints, Kansai Nerolac, and Shalimar Paints, among others are falling in trade as crude prices increase.

• Indian rupee falls by 4 paise to Rs 77.78 against the dollar in early trading today.

• India’s coal production rises 34% YoY to 71.3 million tonnes in May 2022, according to the provisional data released by the Ministry of Coal. Coal India, and Singareni Collieries’ coal production increases 30% and 11% YoY, respectively. 23 out of 37 coal productive mines produced more than 100% coal.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (297.30, 6.16%), Container Corporation of India Ltd. (656.55, 5.53%) and Biocon Ltd. (337.15, 5.18%).

Downers:

Largecap and midcap losers today include Tata Steel Ltd. (1,044.85, -3.86%), Vedanta Ltd. (302.90, -3.30%) and Au Small Finance Bank Ltd. (613.35, -2.52%).

Volume Shockers

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

Top high volume gainers on BSE included PNB Housing Finance Ltd. (397.45, 15.14%), Tata Teleservices (Maharashtra) Ltd. (127.75, 9.99%) and IFB Industries Ltd. (926.55, 9.21%).

Top high volume losers on BSE were Swan Energy Ltd. (258.75, -6.05%), Strides Pharma Science Ltd. (314.70, -4.26%) and Garware Technical Fibres Ltd. (2,991.90, -3.37%).

Gulf Oil Lubricants India Ltd. (422.85, -0.72%) was trading at 9.9 times of weekly average. Mas Financial Services Ltd. (539.35, 6.19%) and Amber Enterprises India Ltd. (2,326.25, -0.01%) were trading with volumes 4.8 and 4.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock made 52-week highs, while 12 stocks were underachievers and hit their 52-week lows.

Stock touching their year highs included - Oil India Ltd. (297.30, 6.16%).

Stocks making new 52 weeks lows included - Gujarat State Petronet Ltd. (240.80, -0.60%) and Shree Cements Ltd. (19,198.00, -1.97%).

13 stocks climbed above their 200 day SMA including Tata Teleservices (Maharashtra) Ltd. (127.75, 9.99%) and Suzlon Energy Ltd. (8.90, 9.20%). 9 stocks slipped below their 200 SMA including Au Small Finance Bank Ltd. (613.35, -2.52%) and Canara Bank (207.50, -1.61%).