Trendlyne Analysis

Nifty 50 closed in the red, with the volatility index Nifty VIX, rising above 21%. European indices trade in the red as UK’s inflation rate hits a new 40-year high of 9.1% in May on the back of high food and energy prices. Asian stocks closed lower as investors remain fearful of the impact of aggressive interest rate hikes by central banks to tame high inflation. However, the US indices closed in the green on Tuesday led by the tech-heavy NASDAQ 100, which rose 2.5%. The S&P 500 closed over 2.4% higher, while Dow Jones advanced 2.2%. Crude oil falls amid slow global economic growth concerns induced by aggressive rate hikes by the central banks.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Energy and Nifty Media closed lower than Tuesday’s levels. Nifty IT closed in the red, despite the tech-focused NASDAQ 100 closing in the green on Tuesday.

Indian markets slumped today. Nifty 50 closed at 15,413.30 (-225.5, -1.4%) , BSE Sensex closed at 51,822.53 (-709.5, -1.4%) while the broader Nifty 500 closed at 13,047.75 (-194.2, -1.5%)

Market breadth is highly negative. Of the 1,876 stocks traded today, 518 were on the uptick, and 1,326 were down.

• Procter & Gamble Hygiene & Healthcare, 3M India, IIFL Wealth Management, and Gland Pharma are trading with higher volumes as compared to Tuesday.

• Tata Consultancy Services sees a long build-up in its Jun 30 future series as its open interest rises 7.1% with put to call ratio of 0.59.

• Stocks like Tata Steel Long Products, IndusInd Bank, SpiceJet, Chambal Fertilisers & Chemicals, and HLE Glascoat are in the oversold zone according to the technical indicator relative strength index or RSI.

• Future Enterprises falls in trade by 5%, after it defaults on interest payment of Rs 6 crore on non-convertible debentures.

  #FutureEnterprises shares plunge 5% after defaulting on Rs 6 crore interest payment for NCDs.#ETMarketshttps://t.co/36EbMItpsw

  — ETMarkets (@ETMarkets) June 22, 2022

• Greenlam Industries rises as it enters into an asset purchase agreement with Bloom Decor to buy a laminate manufacturing plant in Gujarat, according to an exchange filing. A total investment of Rs 51 crore (Rs 36 crore to acquire the plant and Rs 15 crore to operationalise it) will be financed through internal accruals.

• Elecon Engineering rises to a 14-year high of Rs 274.90. It's still far from its life high of 343 it touched on December 16, 2007. The stock is up 83% over the past three months.

• Supreme Industries and Axis Bank hit their 52-week lows of Rs 1,687.5 and Rs 621.3, respectively. While Supreme Industries falls for three consecutive sessions, Axis Bank trades lower for two sessions.

• Alembic Pharmaceuticals is falling as it announces that its revenues fell 8% and 12% YoY in April and May 2022, respectively. The company cites a higher base in its anti-infective segment a year ago for the decline. It also adds that the Indian pharmaceutical market shrunk by 9% and 6% in April and May, respectively

• Suprajit Engineering is trading with more than five times its weekly average trading volume. Max Healthcare Institute, 3M India, Sundram Fasteners, and Aditya Birla Sun Life AMC are trading at more than three times their weekly average trading volumes.

• Oil and gas stocks like ONGC, Reliance Industries, Gujarat Gas and GAIL fall as Brent crude oil slides below $110/bbl. The broader BSE Oil & Gas index is also trading in the red today.

  Alert: #Crude prices hit a one-month low#Brent #Nymex https://t.co/VXrChoIq1c

  — CNBC-TV18 (@CNBCTV18Live) June 22, 2022

• UPL falls to a new 52-week low of Rs. 618.05. The stock falls 23% in a month since closure of buyback offer on May 20.

• Dixon Technologies falls as Morgan Stanley maintains its 'Underweight' rating and cut its target price to Rs 2,634, according to reports. The brokerage believes that weak consumer electronics, domestic lighting volumes and high commodity prices are key concerns for the company.

• Nifty Commodities index constituents like Reliance Industries, Adani Green Energy, Oil and Natural Gas Corporation, UltraTech Cement, and NTPC, among others, are falling in trade today. Nifty Commodities index is also trading in the red.

• Indian rupee depreciates 4 paise to 78.17 against the US dollar in early trade today.

• Zomato is rising in trade as it announces that it will consider a potential acquisition on Friday in its board meeting. The company may pay the consideration for this acquisition through a preferential issue of shares.

  Shares of #Zomato rallied 4% to Rs 68.60 on the BSE in Wednesday’s trade after the company said its board will meet on Friday to consider a proposed acquisition.#StockMarket #MarketsWithBS #StocksInFocus https://t.co/dZ1wKj1LSe

  — Business Standard (@bsindia) June 22, 2022

• IDBI Capital maintains a ‘Hold’ rating on Tata Consultancy Services with a target price of Rs 3,410, indicating an upside of 10%. The brokerage expects the company’s investment in cloud migration and emerging technologies will drive revenue growth. It estimates the company’s revenue to grow at a 12.6% CAGR over FY22-24. However, it expects rising input costs to increase margin pressure in FY23.

• Matrimony.com rises as its board of directors approve a buyback of shares of up to Rs 75 crore. The final buyback price is set at Rs. 1,150 per share . The board of directors fix July 4 as the record date for the buyback.

• Jindal Steel & Power’s subsidiary Jindal Power is set to acquire Simhapuri Energy’s 600 MW power plant for Rs 300 crore, according to reports. The power plant runs on imported coal and the agreement is likely to be completed in over a week. Simhapuri Energy is currently under liquidation.

• Jain Irrigation Systems’ arm, Jain International Trading, to merge with Temasek-owned Rivulis. The company’s international irrigation business is valued at an enterprise value of Rs 4,200 crore, and after the transaction Jain Irrigation will hold a 22% stake in the merged entity. The cash proceeds from the merger will be used to pay off Rs 2,700 crore of overseas debt.

• All metal stocks trade in the red. Stocks like JSW Steel, Tata Steel, Vedanta, Hindalco Industries, Jindal Steel & Power, NMDC, and Steel Authority of India (SAIL), among others, are down by more than 3%. The broader sectoral index Nifty Metal is also falling in trade.

• Securities and Exchange Board of India (SEBI) approves the merger of the multiplex operators PVR and Inox Leisure. According to the agreement, Inox Leisure will merge with PVR in a share swap ratio of 3 shares of PVR for every 10 shares of Inox.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (16.70, 5.36%), Bank of India (44.00, 3.65%) and Hindustan Petroleum Corporation Ltd. (224.55, 2.82%).

Downers:

Largecap and midcap losers today include Sun TV Network Ltd. (408.60, -8.71%), Hindalco Industries Ltd. (316.45, -6.72%) and UPL Ltd. (613.65, -6.20%).

Volume Shockers

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

Top high volume gainers on BSE included ITI Ltd. (104.20, 17.21%), Sequent Scientific Ltd. (96.90, 7.49%) and Central Bank of India (17.30, 3.90%).

Top high volume losers on BSE were Aditya Birla Sun Life AMC Ltd. (401.00, -2.34%), 3M India Ltd. (19,764.85, -1.11%) and Cyient Ltd. (792.10, -0.98%).

Max Healthcare Institute Ltd. (364.25, 0.73%) was trading at 5.5 times of weekly average. Sundram Fasteners Ltd. (684.60, 0.53%) and Rossari Biotech Ltd. (863.10, 0.40%) were trading with volumes 4.5 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks were underachievers and hit their 52 week lows.

Stocks making new 52 weeks lows included - Axis Bank Ltd. (626.80, -1.52%) and Chambal Fertilisers & Chemicals Ltd. (277.35, -5.15%).

9 stocks climbed above their 200 day SMA including Crisil Ltd. (3,204.85, 5.74%) and Blue Dart Express Ltd. (7,172.45, 5.25%). 8 stocks slipped below their 200 SMA including Sunteck Realty Ltd. (460.75, -3.23%) and Siemens Ltd. (2,274.20, -3.09%).