Trendlyne Analysis

Nifty 50 fell over 500 points from the day’s high and hit a 52-week low with the volatility index, India VIX rising above 22.5%. Indian indices closed deep in the red and extended their losing streak to five days. European Indices trade in the red, tracking the US indices futures, which is trading sharply lower. Major Asian indices, which opened higher, closed in the red amid weak global cues.

US indices rose on Wednesday after the US Federal Reserve increased its federal funds rate by 75 bps, its biggest hike in 28 years. However, Chairman Jerome Powell doesn’t expect moves of this size to be common going forward but clarified that in its next meeting rates could rise by 50 bps or 75 bps. Brent crude oil edges higher after falling on Wednesday. Tight crude oil supply due to the geopolitical crisis, fears of slow economic growth, and lockdowns in China remain the key levers affecting the crude oil price.

Nifty Next 50 and Nifty Smallcap 100 closed deep in the red, following the benchmark index. Nifty Media and Nifty Pharma, which opened higher, closed sharply lower than Wednesday’s levels. Nifty IT also closed in the red, tracking the tech-heavy NASDAQ 100 futures, which is trading sharply lower.

Nifty 50 closed at 15,360.60 (-331.6, -2.1%), BSE Sensex closed at 51,495.79 (-1,045.6, -2.0%) while the broader Nifty 500 closed at 13,089.20 (-291.7, -2.2%)

Market breadth is sharply down. Of the 1,878 stocks traded today, 185 were on the uptrend, and 1,676 went down.

• ZF Commercial Vehicle Control Systems India, PNC Infratech, Nuvoco Vistas Corporation, and Kansai Nerolac Paints are trading with higher volumes as compared to Wednesday.

• Maruti Suzuki India sees a short build-up in its Jun 30 futures series as its open interest rises 3.1% with put to call ratio at 0.62.

• Stocks like MMTC, LIC Housing Finance, Laxmi Organic Industries, Gland Pharma, and Tata Communications are in the oversold zone according to the technical indicator relative strength index or RSI.

• Infosys falls to a new 52-week low of Rs 1,401.87 per share. The stock is falling for the last five sessions.

• Metal stocks like Vedanta, Jindal Steel & Power,Tata Steel, APL Apollo Tubes, and Hindalco Industries among others, are falling in trade. The broader sectoral index BSE Metal is also trading in red.

• Zomato and Jio-bp (a joint venture between Reliance Industries and bp) sign an agreement for electric vehicle (EV) services, according to reports. Jio-bp will provide EV services to Zomato and access to ‘Jio-bp pulse’ the battery swapping stations for last-mile delivery.

• All realty stocks are trading in the red. Stocks like, DLF, Godrej Properties, Oberoi Realty, Phoenix Mills, Prestige Estates Projects, Sunteck Realty and Indiabulls Real Estate are down by more than 2%. The broader sectoral index Nifty Realty is also falling in trade.

• Hem Securities maintains a ‘Buy’ rating on PNC Infratech with a target price of Rs 294, indicating an upside of 22.5%. The brokerage company expects the company to remain profitable for the coming quarters on the back of a robust order book, a strong balance sheet, and its tendering activities. It expects the company's profit to grow at a 14.1% CAGR over FY22-24.

• Nifty 50 falls over 400 points from the day's high and hits a 52-week low of 15,369.8 with all sectoral indices trading in the red. Nifty Bank falls over 20% from its record high and falls into the bear market territory.

  Bank Nifty in Bear Market territory
  Bank Nifty down 20.6% from record high
  Bank Nifty 600 points away from 52-week low
  
  Nifty hits fresh 52-week low
  Nifty down 17% from its record high#stockmarketcrash #marketcrash #Nifty #BANKNIFTYFUTURE #banknifty

  — Deepanshu Bhandari (@deepdbhandari) June 16, 2022

• The Reserve Bank of India approves Equitas Small Finance Bank’s request of reappointing MD and CEO Vasudevan for a period of one year. The re-appointment comes in effect from July 23, 2022.

• Sudarshan Chemical Industries is trading with more than 31 times its weekly average trading volume. Galaxy Surfactants, Brigade Enterprises, Vakrangee, and Chemplast Sanmar are trading at more than three times their weekly average trading volumes.

• Media stocks are falling in trade, with stocks like Nazara Technologies, Zee Entertainment Enterprises, Network 18 Media & Investments, TV18 Broadcast, and Dish TV India falling below 2%. The broader sectoral index Nifty Media is also trading in the red.

• Dredging Corp of India is rising as it secures a Rs 250 crore yearly maintenance contract from Jawaharlal Nehru Port at Navi Mumbai. The contract includes the maintenance of the Mumbai and Jawaharlal Nehru Port navigational channels.

• Indian Overseas Bank’s board approves the raising of Rs 1,000 crore equity capital through the issuance of shares for FY23. The company will seek shareholders' approval for raising the capital soon.

• Stocks of airline companies like Interglobe Aviation (Indigo), SpiceJet, and Jet Airways  fall amid hike in ATF prices by oil marketing companies. According to reports, Chairman and SpiceJet's Managing Director Ajay Singh say that a minimum of 10-15% increase in air fares is required due to the hike in ATF prices and depreciation of the rupee. India still has a cap on air fares to prevent soaring ticket fares.

  #StocksToWatch | #Aviation stocks in focus as ATF prices have been hiked by 16% - biggest hike in last 3 months
  
  New rates are applicable till June 30, 2022 #SpiceJet #Indigo #StockMarketIndia #ATF #Crude pic.twitter.com/TZbXpKpA49

  — ET NOW (@ETNOWlive) June 16, 2022

• UPL receives approval for its resolution plan submitted to National Company Law Tribunal for the revival of Kudos Chemie. UPL's arm UPL Speciality Chemicals acquires a 100% stake in Kudos Chemie for Rs 40 crore and has to invest Rs 237 crore in Kudos over a period of two years.

• Diagnostic companies' stocks like Dr Lal Pathlabs, Metropolis Healthcare, Thyrocare Technologies and Krsnaa Diagnostics trade higher due to the gradual increase in Covid-19 cases and increased testing. Diagnostic lab stocks are in a downtrend after the third Covid-19 wave receded in January 2022.

  #CNBCTV18Market | Diagnostic companies in focus
  
  Last 24 hours saw highest #COVID testing tally in 2 months pic.twitter.com/yJ2uSpiqPw

  — CNBC-TV18 (@CNBCTV18Live) June 16, 2022

• Shares of Reliance Industries rise after JP Morgan upgrades the stock to 'overweight', according to reports. The brokerage believes that the company's outperformance to Nifty50 will continue and increases its target price to Rs 3,170 per share from Rs 2,575, which is an upside of 22.10%.

• Securities and Exchange Board of India (SEBI) initiates recovery action on BSE and National Stock Exchange for non-payment of a fine and interest relating to regulatory actions on the two exchanges. These relate to the fine imposed by the regulator for the exchanges not detecting misuse of clients' securities by Karvy Stock Broking.

• Motilal Oswal upgrades its rating on ITC to ‘Buy’ from ‘Neutral’ with a target price of Rs 335, indicating an upside of 27%. The brokerage turns positive on the company’s prospects due to better-than-expected demand recovery in cigarettes, healthy sales traction in the FMCG segment, and lower drag from the hotels segment. It expects the company’s profit to grow at a 13.7% CAGR over FY22-24.

• The Reserve Bank of India approves the merger of Shriram Capital and Shriram City Union Finance into Shriram Transport Finance. The merger was approved by the companies in December 2021 as part of a restructuring of the Shriram Group's lending businesses.

Riding High:

Largecap and midcap gainers today include Adani Transmission Ltd. (2,124.65, 3.27%), General Insurance Corporation of India (115.85, 3.25%) and Bayer Cropscience Ltd. (5,103.20, 1.92%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (267.45, -8.20%), Jindal Steel & Power Ltd. (326.65, -6.28%) and Tata Steel Ltd. (901.70, -6.03%).

Volume Rockets

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

Top high volume gainers on BSE included Vakrangee Ltd. (27.10, 9.05%), Gujarat Alkalies & Chemicals Ltd. (731.95, 1.67%) and Cera Sanitaryware Ltd. (4,082.70, 1.01%).

Top high volume losers on BSE were eClerx Services Ltd. (1,917.05, -7.63%), Spicejet Ltd. (41.05, -6.70%) and InterGlobe Aviation Ltd. (1,649.20, -4.97%).

Sudarshan Chemical Industries Ltd. (419.85, -3.36%) was trading at 41.8 times of weekly average. Heidelberg Cement India Ltd. (173.50, -2.53%) and Galaxy Surfactants Ltd. (2,906.70, -0.95%) were trading with volumes 23.7 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

80 stocks hit their 52-week lows.

Stocks making new 52 weeks lows included - Amara Raja Batteries Ltd. (462.95, -3.41%) and Bajaj Consumer Care Ltd. (130.80, -0.23%).

8 stocks climbed above their 200 day SMA including Gujarat Alkalies & Chemicals Ltd. (731.95, 1.67%) and Au Small Finance Bank Ltd. (624.65, -0.44%). 22 stocks slipped below their 200 SMA including Aegis Logistics Ltd. (213.55, -6.69%) and Tata Teleservices (Maharashtra) Ltd. (119.75, -5.89%).