Trendlyne Analysis

Nifty 50 closed in the green with the Indian volatility index Nifty VIX, falling below 21%. European indices traded in the red amid mixed global cues. However, most major Asian indices closed higher, despite the US indices closing lower on Wednesday. The US indices gave up their intraday gains and closed lower after the US Federal Reserve Chairman Jerome Powell acknowledged the possibility of a recession due to a series of aggressive rate hikes. Crude oil extends losses amid slow global economic growth concerns induced by rate hikes by the central banks.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty FMCG closed higher than Wednesday’s levels. Nifty IT closed higher, following NASDAQ futures, which is trading in the green.

Markets closed up today. Nifty 50 closed at 15,556.65 (143.4, 0.9%) , BSE Sensex closed at 52,265.72 (443.2, 0.9%) while the broader Nifty 500 closed at 13,178.80 (131.1, 1%)

Market breadth is ticking up strongly. Of the 1,875 stocks traded today, 1,230 were gainers and 590 were losers.

• 3M India, Mahindra Logistics, Sundram Fasteners, and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Wednesday.

• Nazara Technologies rises as JM Financial initiates coverage with a ‘Hold’ rating and a target price of Rs 1,070, indicating an upside of 6.9%. The brokerage is positive on the company’s prospects given its robust presence across eSports, gamified learning, and simulation. It expects the company’s revenue to grow at a CAGR of 32% over FY22-25.

• Maruti Suzuki India sees a long build-up in its Jun 30 future series as its open interest rises 10.4% with put to call ratio of 1.12.

• Stocks like Indian Oil Corporation, CESC, Tech Mahindra, Vakrangee, and Star Health and Allied Insurance Company are in the oversold zone according to the technical indicator relative strength index or RSI.

• Route Mobile rises after it hit a new 52-week low during trade today after the company announces it will consider a proposal for buyback of shares on Tuesday.

• ICICI Securities maintains a ‘Buy’ rating on Indian Hotels Co with a target price of Rs 284, indicating an upside of 32.7%. The brokerage remains positive on the company’s strategy of increasing the number of hotels in its portfolio, increasing revenue from management contracts and new brands, and implementing cost-saving measures. It expects the company’s revenue to grow at a 12.5% CAGR over FY22-24.

• Devyani International and Sapphire Foods India rise as Kotak Institutional Equities initiates coverage on the companies with 'ADD' and 'BUY' ratings, respectively, according to reports. The brokerage believes a potential resurgence of Yum franchisees in India due to a rise in ordering-in, sharper execution and plans to address under-penetration will help the businesses grow. This could result in revenue CAGR of 18% and 17% for Devyani and Sapphire, respectively. The brokerage set a target price of Rs 151 for Devyani International (an upside of 2.9%) and Rs 1,425 for Sapphire Foods India (an upside of 40.25%).

• BSE Consumer Discretionary Goods and Services index constituents like Asian Paints, DLF, FSN E-Commerce Ventures, Berger Paints (India), and Zomato, among others, are rising in trade today. BSE Consumer Discretionary Goods and Services index is also trading in the green.

• Vinati Organics rises in trade after it plans to expand capacity with a capex of Rs 580 crore to be commissioned by December 2023. This includes a capex of Rs 300 crore towards expanding ATBS capacity from 40,000 MT to 60,000 MT and a Rs 280 crore investment in arm Veeral Organics.

  #JustIn | Vinati Organics to expand capacity with #capex of Rs 580 cr pic.twitter.com/9oJOCngmvB

  — CNBC-TV18 (@CNBCTV18Live) June 23, 2022

• Muthoot Finance and Route Mobile hit their 52-week lows of Rs 980.1 and Rs 1060.6, respectively. Both stocks are trading lower for three consecutive sessions.

• InterGlobe Aviation’s total passengers carried in May rises 6X YoY to 69.9 lakhs and its market share rises 261 bps YoY to 57.9%. The number of passengers carried by airlines in May rises nearly 5X to 1.2 crore.

• Triveni Turbine is trading with more than 22 times its weekly average trading volume. IRB Infrastructure Developers, CreditAccess Grameen, Glenmark Pharmaceuticals, and Sheela Foam are trading at more than three times their weekly average trading volumes.

• Larsen & Toubro rises as the company's hydrocarbon division wins contracts of three offshore packages from an overseas client. The company classifies the contract as 'large' which means that the order value is in the range of Rs 2,500-5,000 crore.

• Sun TV Network falls to a new 52-week low of Rs 402.55. Stock falls 10% in the last two sessions.

• Indian rupee appreciates 9 paise to 78.23 against the US dollar in early trade today. The rupee fell 19 paise to a new all-time low of 78.32 on Wednesday.

• Quess Corp is rising in trade as Allsec Technologies is set to merge with the company in an all-stock deal. Allsec Technologies is valued at an enterprise value of Rs 16.2 crore. Public shareholders of Allsec Technologies will be issued equity shares of Quess Corp in the ratio of 74:100. The transaction is at arm's length basis.

• Spandana Sphoorty rises as it resolves all differences with the promoter and former Managing Director Padmaja Gangireddy. This includes a reconciliation of all historical matters. Gangireddy resigned from her position as Managing Director following which certain disputes arose between her and the board of directors of the company.

  Shares of #SpandanaSphoorty soared 10% to Rs 367.90 in Thursday’s intra-day trade after the firm and ex-MD Padmaja Reddy resolved their differences.#StockMarket #MarketsWithBS #StocksInFocus https://t.co/9TEnMQmbFQ

  — Business Standard (@bsindia) June 23, 2022

• IRB Infrastructure is rising in trade as it receives Rs 308 crore, which is 75% of the total arbitration award of Rs 419 crore from the National Highway Authority of India. IRB Pathankot Amritsar Toll Road, a special purpose vehicle of the company, receives the award over a dispute in payment related to the Pathankot-Amritsar project.

• Glenmark Pharmaceuticals is falling as the US FDA issues six observations after inspecting its formulation facility at Baddi. The inspection took place from June 13-22

• Auto stocks like MRF, Bosch, Maruti Suzuki, Baja Auto, Eicher Motors, Hero MotoCorp, TVS Motor Co, among others, are rising in trade. The broader sectoral index Nifty Auto is also trading in the green.

• Vodafone Idea is set to raise funds worth Rs 436.2 crore from Euro Pacific Securities, a Vodafone Group entity and promoter of the company. The board approved issuing 42.7 crore equity shares at Rs 10.2 per share or 42.7 crore warrants convertible to equity shares at an issue price of Rs 10.2 per share. This is the company’s second fund raise in two months.

Riding High:

Largecap and midcap gainers today include Maruti Suzuki India Ltd. (8,271.00, 6.27%), Hero MotoCorp Ltd. (2,674.10, 5.93%) and Eicher Motors Ltd. (2,819.05, 5.87%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (562.50, -5.75%), Reliance Industries Ltd. (2,464.95, -1.62%) and InterGlobe Aviation Ltd. (1,621.50, -1.54%).

Volume Shockers

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

Top high volume gainers on BSE included Responsive Industries Ltd. (128.65, 16.80%), Chemplast Sanmar Ltd. (452.20, 14.79%) and KEC International Ltd. (412.95, 10.87%).

Triveni Turbine Ltd. (158.90, 5.06%) was trading at 34.7 times of weekly average. IRB Infrastructure Developers Ltd. (199.30, 7.12%) and Route Mobile Ltd. (1,193.65, 8.51%) were trading with volumes 9.4 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks were underachievers and hit their 52 week lows.

Stocks making new 52 weeks lows included - Axis Bank Ltd. (629.35, 0.41%) and Chambal Fertilisers & Chemicals Ltd. (280.40, 1.10%).

11 stocks climbed above their 200 day SMA including Hero MotoCorp Ltd. (2,674.10, 5.93%) and NOCIL Ltd. (248.75, 4.47%). 6 stocks slipped below their 200 SMA including Gujarat State Fertilizer & Chemicals Ltd. (133.20, -2.63%) and Power Grid Corporation of India Ltd. (208.55, -1.00%).