Trendlyne Analysis

Nifty 50 closed 1.9% higher with the volatility index, Nifty VIX, falling by 5.7%. Indian indices extended their gains after snapping their six-day losing streak on Monday. European stocks follow the global trend and trade higher than Monday’s levels. Most major Asian indices closed higher, tracking the US indices futures, which is also trading in the green. The Chinese index, Shanghai SE Composite closed lower as investors keep an eye on the Covid breakouts in some parts of the country that may result in another wave of lockdowns. Crude oil rises as tight supply concerns outweigh slow economic growth induced by the aggressive rate hikes by the central banks.

Nifty Smallcap 100 and Nifty Next 50 closed deep in the green, following the benchmark index. Nifty Smallcap 100 fell 3.2% on Monday, despite the Nifty 50 closing in the green. Nifty Media and Nifty Metal closed sharply higher than Monday’s levels. Nifty IT closed deep in the green, tracking the NASDAQ 100 futures, which is trading sharply higher.

The market closed on an upbeat note. Nifty 50 closed at 15,638.80 (288.7, 1.9%) , BSE Sensex closed at 52,532.07 (934.2, 1.8%) while the broader Nifty 500 closed at 13,241.90 (291.2, 2.3%)

Market breadth is ticking up strongly. Of the 1,882 stocks traded today, 1,579 were on the uptrend, and 278 went down.

• Orient Electric, Procter & Gamble Health, Gujarat Pipavav Port, and Cholamandalam Financial Holdings are trading with higher volumes as compared to Monday.

• Tata Steel sees a long build-up in its Jun 30 future series as its open interest rises 5.7% with put to call ratio of 0.36.

• Bank stocks are trading in the green. Stocks like ICICI Bank, State Bank of India, Bank of Baroda, Federal Bank and Punjab National Bank are up more than 3%. The broader sectoral index Nifty Bank is also rising in trade.

• Sadbhav Engineering hit an all-time low of Rs 13.05 after India Ratings downgraded its credit rating on the company to BB+ from BBB+. The rating agency said there is a deterioration in the company’s liquidity position due to a continuous decline in revenue in FY22. It also expects the company’s project execution to remain sluggish in FY23.

• GAIL(India) is rising in trade as the Centre plans to monetise its city gas distribution network and green hydrogen assets. The Centre hopes to raise Rs 5,000 crore from this process.

  #ETNOWExclusive | Govt is planning to monetise GAIL’s CGD & green hydrogen assets. ET NOW has learned from sources that Govt aims to raise Rs 5000 cr from this. @priyadarshi108 has more details@GailIndia @SecyDipam @FinMinIndia @PMOIndia #GAIL #StocksToWatch #StockMarketIndia pic.twitter.com/Gp8r3aYsNd

  — ET NOW (@ETNOWlive) June 21, 2022

• Marksans Pharma's Time-Cap Laboratories Inc recalls Kroger Brand aspirin and ibuprofen due to a label packaging issue to meet child resistant packaging requirement. A total of 12 lots containing 2,09,430 units were recalled.

• Bharat Forge's board of directors approves transfer of the company's stake in Refu Drive GmbH to joint venture company Kalyani Powertrain in a meeting held on Monday.

• Centre's Ministry of Finance, in its latest Monthly Economic Review, warns of the return of the twin-deficit problem arising from higher commodity prices and increased subsidy burden. The ministry expects there could be a fiscal slippage in FY23.

  Finance ministry cautioned re-emergence of the twin deficit problem in the #economy, with higher #commodity prices & rising subsidy burden leading to increase in both fiscal deficit and current account deficit. @aruproytweets reports#IndianEconomyhttps://t.co/brcUypTQam

  — Business Standard (@bsindia) June 21, 2022

• Securities and Exchange Board of India bars asset management companies (AMCs) from selling bundled insurance products with their mutual fund schemes, according to reports. In a letter on Friday to Association of Mutual Funds in India, the market regulators told AMCs to stop this practice for new product launches. AMC companies like HDFC AMC, UTI AMC, and Nippon Life India Asset Management will likely be impacted by this.

• JK Cement and V Mart Retail touch their 52-week lows of Rs 2,025 and Rs 2,430, respectively. Both stocks are falling for six consecutive days.

• 3M India is trading with more than 8 times its weekly average trading volume. Procter & Gamble Hygiene & Healthcare, V Mart Retail, The Fertilisers and Chemicals Travancore, and EID Parry (India) are trading at more than four times their weekly average trading volumes.

• Hindustan Zinc trades lower as LME Zinc falls to a record low on the LME and after floods in the Guangxi province impacted China’s Zinc capacity.

  Hind Zinc in Focus
  
  LME Zinc stock piles at record low on LME
  
  China's 8% Zinc capacity impacted due to Floods
  
  Hind Zinc trading near 52 week lows https://t.co/IZNsWKH8IH

  — Yatin Mota (@YatinMota) June 21, 2022

• ICICI Securities maintains a ‘Buy’ rating on Havells India with a target price of Rs 1,644, indicating an upside of 53.5%. The brokerage remains positive on the company’s prospects due to its distribution expansion, new product launches, and rising investment in research & development. It expects the company’s net profit to grow at a 27.2% CAGR over FY22-24.

• ICICIDirect downgrades textile stocks such as KPR Mills and Gokaldas Exports to 'HOLD' from 'BUY', and cuts their target price to Rs 635 and Rs 400, respectively. Spike in cotton prices and subdued demand from large US retailers like Target, Gap and Walmart on account of inventory pile-up are key reasons behind this downgrade.

• Adani Group loses Rs 5.5 lakh crore market cap after the group's listed companies' stocks fell by 30% on average in the sell-of in Indian markets.

  #Adani Group Lost 5.5 Lk Cr Mcap in Recent fall
  
  Adani Group Companies have lost on an avg 30% fall #adaniports #adanigreen #AdaniEnterprises #Adaniwilmar#adanitotal#Adanitransmission pic.twitter.com/PmyxbEzHpu

  — Sumit Mehrotra (@SumitResearch) June 21, 2022

• Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Saregama India, and Network 18 Media & Investments, among others, are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

• Indian rupee depreciates 6 paise to 78.04 against the US dollar in early trade. All IT stocks are trading in the green, with stocks like Tata Consultancy Services, Infosys, HCL Technologies, Larsen & Toubro Infotech, MindTree, among others, rising by more than 2%. The broader sectoral index Nifty IT is also rising in trade.

• Suven Life Sciences' stock rises the most in 11 weeks as its board approves a fund raise through rights issue of equity shares.

• Nifty 50 sees a long build-up in its Jun 30 future series as its open interest rises 1.1% with put to call ratio of 1.05.

• Consumer Durables stocks like Titan Company, Havells India, Voltas, Dixon Technologies (India), Aditya Birla Fashion and Retail, Whirlpool of India, among others, are rising in trade. The broader sectoral index BSE Consumer Durables is also trading in the green.

• Happiest Minds Technologies touches a 52-week low of Rs 785.5, as Morgan Stanley Investment Funds Emerging Leaders Equity Fund sold 13.1 lakh shares of the company for Rs 800 per share through a bulk deal on Monday.

• KEC International bags orders worth Rs 1,092 crore across its various business verticals. The company secures orders for transmission & Distribution in India, the Middle East and the Americas. Its civil business segment bags orders in the railways, residential, industrial, and defence segments in India.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (2,382.90, 19.79%), JSW Energy Ltd. (211.35, 8.11%) and Adani Transmission Ltd. (2,215.05, 7.51%).

Downers:

Largecap and midcap losers today include Supreme Industries Ltd. (1,739.90, -2.61%), Kansai Nerolac Paints Ltd. (374.55, -1.96%) and Varun Beverages Ltd. (738.70, -1.81%).

Movers and Shakers

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

Top high volume gainers on BSE included EID Parry (India) Ltd. (546.20, 17.69%), Gujarat State Fertilizer & Chemicals Ltd. (139.10, 17.48%) and Asahi India Glass Ltd. (516.10, 16.20%).

Top high volume losers on BSE were Brightcom Group Ltd. (40.50, -4.93%), KPR Mill Ltd. (504.45, -3.89%) and V Mart Retail Ltd. (2,490.90, -2.29%).

3M India Ltd. (19,987.40, 2.01%) was trading at 9.1 times of weekly average. Procter & Gamble Hygiene & Healthcare Ltd. (13,337.70, 0.35%) and IDFC First Bank Ltd. (30.40, 1.84%) were trading with volumes 7.3 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks tanked below their 52 week lows.

Stocks making new 52 weeks lows included - Bharat Petroleum Corporation Ltd. (301.20, 1.74%) and IDFC First Bank Ltd. (30.40, 1.84%).

15 stocks climbed above their 200 day SMA including EID Parry (India) Ltd. (546.20, 17.69%) and Gujarat State Fertilizer & Chemicals Ltd. (139.10, 17.48%). 4 stocks slipped below their 200 SMA including Crisil Ltd. (3,030.95, -0.85%) and Au Small Finance Bank Ltd. (611.75, -0.39%).