Trendlyne Analysis

Indian indices snapped their six-day losing streak and closed in the green. European stocks trade higher than Friday’s levels amid mixed global cues. Major Asian indices closed mixed, tracking the US indices, which also closed mixed on Friday. The Dow Jones closed marginally lower while the tech-heavy NASDAQ 100 rose 1.2%. The S&P 500 lost 5.8% last week, its biggest weekly loss in two years. Investors continue to monitor elevated inflation levels globally and the effect of aggressive interest rate hikes by the central banks on economic growth. Crude oil falls sharply amid demand concerns on the back of slow economic growth induced by interest rate hikes.

Nifty Midcap 100 and Nifty Smallcap 100 closed deep in the red, despite the benchmark index closing in the green. Nifty Bank and Nifty Realty, which opened higher than Friday’s levels, closed in the red. Nifty IT closed in the green, following the tech-focused NASDAQ 100, which closed higher on Friday.

Nifty 50 closed at 15,350.15 (56.7, 0.4%) , BSE Sensex closed at 51,597.84 (237.4, 0.5%) while the broader Nifty 500 closed at 12,950.75 (-44, -0.3%)

Market breadth is highly negative. Of the 1,906 stocks traded today, 234 were in the positive territory and 1,648 were negative.

• Brightcom Group, Gland Pharma, Relaxo Footwears, and Orient Electric are trading with higher volumes as compared to Friday.

• Vedanta sees a short build-up in its Jun 30 future series as its open interest rises 11% with put to call ratio at 0.49.

• Stocks like Persistent Systems, Pidilite Industries, Rashtriya Chemicals & Fertilizers, Angel One, and Varroc Engineering are in the oversold zone according to the technical indicator relative strength index or RSI.

• Axis Bank falls to a new 52-week low of Rs 624.45 per share. The stock is falling for last two consecutive sessions.

• National Aluminium Co is falling as ICICI Securities downgrades its rating on the stock to ‘Sell’ from ‘Reduce’ with a target price of Rs 52. The brokerage cites possible demand-supply surplus in FY23-24, price and delay in the current projects leading to cost overrun for downgrading its rating on the stock. It also cut its FY23 profit estimates for the company by 37% to Rs 1,658.6 crore.

• Delta Corp falls the most in four weeks after Rakesh Jhunjhunwala sells 57 lakh equity shares for Rs 96 crore in the open market, according to reports. Jhunjhunwala previously sold 60 lakh and 15 lakh shares between June 1-14, bringing his holding down to 3.36% from 6.17%. After the current reported transaction, his holding will come down to 1.2%.

  Shares of #DeltaCorp plunged 10% to Rs 166.65 after Rakesh Jhunjhunwala sold an additional 5.7 million equity shares of the company. #StockMarket #StocksInFocus #MarketsWithBS #Markets https://t.co/xeggJAQ57G

  — Business Standard (@bsindia) June 20, 2022

• Alkem Laboratories is rising despite its St. Louis manufacturing facility receiving three observations after the conclusion of the US FDA’s facility inspection. The inspection was conducted from June 6 -17.

• Paint companies' stocks like Asian Paints, Berger Paints, and Kansai Nerolac rise in trade today as crude oil falls to a three-week low. Nearly 50% of raw material of paint makers comes from crude oil derivatives.

• IndusInd Bank and Amara Raja Batteries touch their 52-week lows of Rs 780.1 and Rs 446 respectively. Both stocks trade lower for eight consecutive sessions.

• ITI is trading with more than 15 times its weekly average trading volume. The Fertilisers and Chemicals Travancore, Gujarat Pipavav Port, Orient Electric, and Vedanta are trading at more than three times their weekly average trading volumes.

• Greenlam Industries is rising after its board of directors approve a preferential issue of Rs 195 crore for a 4.97% stake in the company to Asian Paints' promoter entity Smiti Holding and Trading.

• FMCG stocks like Hindustan Unilever, ITC, Nestle India, Dabur India, Godrej Consumer Products, United Breweries, among others, are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

• JP Morgan initiates coverage on Life Insurance Corp of India with an ‘Overweight’ rating and a target price of Rs 840, indicating an upside of 29%. The brokerage finds the company’s current valuation attractive and believes that the markets are mispricing the stock.

  #StockMarkets | Shares of LIC, the largest life insurer in India, is down 31% since initial public offering (IPO) and analysts at JP Morgan think markets are mispricing the newly listed stock. https://t.co/nuBO6PVo9E

  — Mint (@livemint) June 20, 2022

• Adani Wilmar hits the lower circuit during trade as it cuts edible oil prices by Rs 10, after the Centre reduces import duties on the commodity on Saturday.

• Energy stocks like Reliance Industries, Bharat Petroleum Corp, Power Grid Corporation of India, Tata Power Co, NTPC, Oil and Natural Gas Corp, among others, are falling in trade after oil prices fell 5% to a three-week low on Friday. The broader sectoral index Nifty Energy is also trading in the red.

• Axis Securities maintains a ‘Buy’ rating on Dalmia Bharat with a target price of Rs 1,635, indicating an upside of 30%. The brokerage expects the company’s market share to grow going forward on the back of production capacity expansion, cost optimization, and robust demand. It expects the company’s revenue to grow at a 14.1% CAGR over FY22-24.

• Shares of Sun Pharmaceutical Industries rise as Jefferies upgrades the stock to 'Buy' rating from 'underperform', according to reports. It set a price target of Rs 910, an upside of 12%. The brokerage believes that the next two years' growth will be driven by Ilumya, Cequa and Winlevi while the dependance on US generics is among the lowest in the pharmaceutical sector.

• All metals stocks are trading in the red. Stocks like Hindustan Zinc, Tata Steel, Vedanta, Hindalco Industries, NMDC, National Aluminium Co or NALCO,among others, are down by more than 3%. The broader sectoral index Nifty Metal is also falling in trade.

  #MarketsWithETNOW | #Nifty Metal cracks 4% from morning high. Take a look at the stock fall#Nifty50 #TataSteel #Hindalco #StockMarketIndia pic.twitter.com/A1wbZICk4e

  — ET NOW (@ETNOWlive) June 20, 2022

• Vodafone Idea's board to consider raising Rs 500 crore by issuance of equity shares and/or convertible warrants on a preferential basis to one or more entities of Vodafone Group. The meeting is scheduled for Wednesday.

• Indian rupee surges 9 paise to Rs 77.96 against the US dollar in early trade. IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, and Wipro also rise in trade today.

• Vedanta invites bids for its Tuticorin-based smelter--Sterlite Copper--which is shut since mid-2018. The smelter accounted for 40% of India’s copper output before it was shut over alleged violations of environmental norms. The last date for submission of an expression of interest is July 4. Plant units, along with oxygen-generating facilities as well as residential homes, are a part of the sale offer.

Riding High:

Largecap and midcap gainers today include Pidilite Industries Ltd. (2,106.65, 5.36%), Godrej Consumer Products Ltd. (759.00, 4.65%) and Hindustan Unilever Ltd. (2,195.90, 4.05%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (230.45, -12.69%), Bandhan Bank Ltd. (274.05, -11.71%) and Oil India Ltd. (227.00, -10.86%).

Movers and Shakers

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

Top high volume gainers on BSE included ITI Ltd. (93.00, 12.52%) and DCB Bank Ltd. (75.10, 5.33%).

Top high volume losers on BSE were Vedanta Ltd. (230.45, -12.69%), Rain Industries Ltd. (135.65, -10.08%) and Hindustan Copper Ltd. (84.35, -9.40%).

Gujarat Pipavav Port Ltd. (74.90, -2.60%) was trading at 5.4 times of weekly average. Orient Electric Ltd. (247.75, -3.09%) and Tasty Bite Eatables Ltd. (8,184.00, -6.91%) were trading with volumes 5.1 and 4.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

125 stocks tanked below their 52 week lows.

Stocks making new 52 weeks lows included - Amara Raja Batteries Ltd. (445.30, -3.49%) and Astral Ltd. (1,607.65, -1.52%).

5 stocks climbed above their 200 day SMA including Adani Green Energy Ltd. (1,743.65, 1.89%) and Adani Transmission Ltd. (2,060.25, 1.36%). 24 stocks slipped below their 200 SMA including Bandhan Bank Ltd. (274.05, -11.71%) and Oil India Ltd. (227.00, -10.86%).