Trendlyne Analysis

Nifty 50 closed in the red and extended its losing streak to six days on a volatile day of trade. European stocks trade higher, following the US indices futures, which are trading in the green. Major Asian indices closed lower, tracking the US indices, which closed deep in the red on Thursday. The tech-heavy index, NASDAQ 100 fell 4% and S&P 500 closed 3.3% lower. Investors remain fearful of the impact of aggressive rate hikes by central banks on the global economy. Brent crude oil falls marginally amid demand concerns due to the possibility of slow economic growth induced by rate hikes globally. In the last week, foreign investors have sold over Rs 14,418.7 crore worth of shares of Indian companies.

Nifty Next 50 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty FMCG closed lower than Thursday’s levels. Nifty IT closed in the red, tracking the tech-focused NASDAQ 100, which fell sharply lower on Thursday.

Nifty 50 closed at 15,293.50 (-67.1, -0.4%), BSE Sensex closed at 51,360.42 (-135.4, -0.3%) while the broader Nifty 500 closed at 12,994.75 (-94.5, -0.7%)

Market breadth is overwhelmingly negative. Of the 1,865 stocks traded today, 501 were on the uptrend, and 1,334 went down.

• Galaxy Surfactants, Emami, G R Infraprojects, and Sundram Fasteners are trading with higher volumes as compared to Thursday.

• Coforge sees a long build-up in its Jun 30 futures series as its open interest rises 19.9% with put to call ratio at 0.45.

• Stocks like Zee Entertainment Enterprises, Firstsource Solutions, BSE, Jubilant Pharmova, and HLE Glasscoat are in the oversold zone according to the technical indicator relative strength index or RSI.

• Aster DM Healthcare announces the opening of a 550-bed super-specialty hospital in Trivandrum, Kerala. The company will invest around Rs 500 crore for the entire project. The first phase is expected to be operational by FY26.

• Shares of Coal India rise after reports that the company is exploring to ramp up its underground mine production by four times to 100 million tonnes from 25.6 million tonnes by FY30.

• Sugar stocks like Shree Renuka Sugars, EID Parry(India), Balrampur Chini Mills, Banmari Amman Sugars, among others, are falling after reports say that the Centre might cap the sugar exports at 6-7 million tonnes for the second straight year starting this October.

  Industry and government sources said that the country could cap exports of the sweetener at 6 million to 7 million tonnes in the 2022/23 October-September season, about one-third less than the total to be shipped out in the current season.https://t.co/Os4G6ZKc06

  — Mint (@livemint) June 17, 2022

• Shares of Gujarat Gas and Petronet LNG are falling as Jefferies expects high liquified natural gas (LNG) prices to increase margin pressure on city gas distribution (CGD) companies. However, GAIL rises as Jefferies expects the company to be a key beneficiary of rising LNG prices.

• Reliance Industries might be considering a bid for bankrupt beauty and personal care products maker Revlon, according to reports.

  #ETNOWExclusive #RIL considers buying out @Revlon in USA#Revlon filed for #bankruptcy in USA this week
  RIL has big plans for #beauty & personal care@nayantararai has the scoop#RelianceIndustries #MukeshAmbani #StocksToWatch
  https://t.co/kBtdNXLgQ5

  — ET NOW (@ETNOWlive) June 17, 2022

• ICICI Securities recommends a ‘Buy’ rating on diagnostic stocks like Dr Lal Pathlabs, Metropolis Healthcare, Thyrocare Technologies, and Vijaya Diagnostic Centre. The brokerage is positive on the prospects of the diagnostic industry given the high business-to-consumer contribution, increasing specialty tests, geographical expansion, and high margins

• Motilal Oswal initiates coverage on Motherson Sumi Wiring India with a ‘Buy’ rating and a target price of Rs 80, indicating an upside of 28%. The brokerage believes the company is well-placed to benefit from the increasing electrification of vehicles in the Indian market. It is positive on the company’s prospects given its capital efficiency and strong competitive positioning. The brokerage expects the company’s profit to grow at a 23% CAGR over FY22-25.

• Honeywell Automation India is trading with more than four times its weekly average trading volume. Delta Corp, Rites, Titan Company, and Prestige Estates Projects are trading at more than three times their weekly average trading volumes.

• Sun TV Network is rising as Kotak Institutional Equities upgrades the stock to 'Buy' rating from 'Reduce', according to reports. The brokerage believes that the company's core TV business is in a sweet spot, gaining share from Zee Tamil. The sale of IPL media rights for 2023-27 seasons for Rs 48,390 crore is another positive as the valuation of Sun Risers Hyderabad will rise to Rs 7,500-Rs 9,000 crore. The brokerage raised its target price to Rs 540 from Rs 460, an upside of 28.56%.

• Stocks of hotel companies like Indian Hotels Co, EIH, Chalet Hotels, and Lemon Tree Hotels are down as India reports 12,847 fresh covid cases in the last 24 hours.

• Promoters of Dabur India (Burman family) acquire 14.3% shares in Eveready Industries in an open offer that closed on Thursday, according to reports. The Burmans now hold up to 38.3%. In February, the Burmans gave JM Financial Services a mandate to acquire a 5.26% stake in Eveready at the same price as that of the open offer price with an intent to take over the reins at the company.

• Pharma stocks like Dr. Reddy's Laboratories, Laurus Labs, Cipla, and Divi's Laboratories, among others are falling in trade. The broader sectoral index Nifty Pharma is also trading in red.

• Shares of Axis Bank, Housing Development Finance Corp, Tata Consultancy Services, Bharat Petroleum, Pidilite Industries, among others, touch 52-week lows in trade.

• IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, Tech Mahindra, Larsen & Toubro Infotech, among others, touch their 52-week lows due to growing fears of a recession in the US. The broader sectoral index BSE IT Sector also touches its new 52-week low.

  Shares of IT companies continued to remain under pressure, with the S&P BSE IT index registering a fresh 52-week low in Friday’s trade. #StockMarket #MarketsWithBS #ITShares #ITsector #Wipro #Infosys #TCS https://t.co/wL9XkIBGVW

  — Business Standard (@bsindia) June 17, 2022

• The Reserve Bank of India (RBI) turns net buyer of dollars in April. Recent data shows that RBI bought $1.96 billion in the foreign exchange market. RBI sold $20 billion in March to arrest the volatility of the rupee.

• Paint stocks like Asian Paints, Berger Paints, Kansai Nerolac Paints, and Indigo Paints, among others, are falling in trade today. The fall comes amid Brent crude prices hovering around $120 per barrel. The broader Furniture-Furnishing-Paints industry is also trading in the red.

• Delta Corp rises after its subsidiary Deltatech Gaming files for a Rs 550-crore IPO. The proposed IPO will comprise of a fresh issue of equity shares worth Rs 300 crore and an offer for sale worth Rs 250 crore.

• RITES bags a contract worth Rs 364.56 crore from Container Corporation of India. The order relates to the operation and maintenance of shunting locomotives for a period of 10 years.

Riding High:

Largecap and midcap gainers today include Sun TV Network Ltd. (433.05, 5.78%), Hindustan Aeronautics Ltd. (1,898.70, 5.65%) and Bajaj Finance Ltd. (5,419.55, 2.57%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,149.05, -9.57%), Bajaj Holdings & Investment Ltd. (4,471.70, -6.36%) and Titan Company Ltd. (1,936.45, -6.04%).

Volume Rockets

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

Top high volume gainers on BSE included Delta Corp Ltd. (184.20, 12.39%), KIOCL Ltd. (190.10, 12.02%) and Sun TV Network Ltd. (433.05, 5.78%).

Top high volume losers on BSE were Adani Total Gas Ltd. (2,149.05, -9.57%), Titan Company Ltd. (1,936.45, -6.04%) and Avenue Supermarts Ltd. (3,460.55, -6.03%).

Indus Towers Ltd. (208.00, 0.73%) was trading at 6.9 times of weekly average. Hindustan Aeronautics Ltd. (1,898.70, 5.65%) and Honeywell Automation India Ltd. (32,856.90, -0.23%) were trading with volumes 6.4 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit their 52-week highs, while 133 stocks were underachievers and hit their 52-week lows.

Stock touching their year highs included - Hindustan Aeronautics Ltd. (1,898.70, 5.65%).

Stocks making new 52 weeks lows included - Akzo Nobel India Ltd. (1,701.60, -2.49%) and Amara Raja Batteries Ltd. (461.40, -0.33%).

7 stocks climbed above their 200 day SMA including Asahi India Glass Ltd. (464.20, 8.51%) and Jyothy Labs Ltd. (153.60, 3.99%). 19 stocks slipped below their 200 SMA including Linde India Ltd. (2,843.35, -5.18%) and Vinati Organics Ltd. (1,851.90, -4.47%).