Trendlyne Analysis

Nifty 50 closed in the green with the volatility index, Nifty VIX, rising above 21%. Indian indices closed higher amid positive global cues and extended their winning streak to three days. European stocks followed the global trend and traded higher than Friday’s levels. Major Asian indices closed in the green, tracking the US indices, which closed sharply higher on Friday. The NASDAQ 100 rose 3.5% while the S&P 500 closed 3.1% higher. However, investors continue to monitor elevated inflation levels and the impact of aggressive rate hikes on global economic growth. Crude oil falls marginally as concerns over economic slowdown outweigh restricted Russian oil supplies amid sanctions over the Ukraine crisis.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Auto closed higher than Friday’s levels. Nifty IT closed in the green, tracking the tech-focused NASDAQ 100, which closed sharply higher on Friday.

Nifty 50 closed at 15,832.05 (132.8, 0.9%), BSE Sensex closed at 53,161.28 (433.3, 0.8%) while the broader Nifty 500 closed at 13,444.55 (122.1, 0.9%)

Market breadth is ticking up strongly. Of the 1,903 stocks traded today, 1,391 showed gains, and 465 showed losses.

• Brightcom Group, Kansai Nerolac Paints, Krishna Institute of Medical Sciences, and Sudarshan Chemical Industries are trading with higher volumes as compared to Friday.

• Bajaj Finance sees a long build-up in its Jun 30 future series as its open interest rises 1.9% with put to call ratio of 0.59.

• BofA Securities initiates coverage on Delhivery with a ‘buy’ rating and a target price of Rs 630, according to reports. The brokerage believes the company is on track for breakeven of EBITDA and free cash flow. It expects revenue to grow by 40-43% for FY23-26 and parcel volumes to increase at 33% CAGR.

• Stocks like Muthoot Finance, Gujarat State Petronet, Tata Steel, IDBI Bank, and Hindalco Industries are in the oversold zone according to the technical indicator relative strength index or RSI.

• Power stocks like Adani Green Energy, Power Grid Corp of India, NTPC, Adani Power, Tata Power Co, among others, are rising in trade. The broader sectoral index BSE Power is also trading in the green.

• Bajaj Auto's board of directors approve a buyback of share worth up to Rs 2,500 crore through the open market route. The price for the buyback is set at Rs 4,600. The promoters and promoter group entities will not participate in the buyback.

  #BreakinNews | Bajaj Auto board approves #buyback up to Rs 2,500 cr at max Rs 4,600/share pic.twitter.com/tTRj82cer6

  — CNBC-TV18 (@CNBCTV18Live) June 27, 2022

• Dish TV is rising after its shareholders vote against re-appointing Jawahar Goel (also a promoter of Dish TV) as Managing Director of the company on Friday.

• SIS is trading with more than 13 times its weekly average trading volume. Jyothy Labs, Tube Investments, Vaibhav Global, and Brightcom Group of India are trading at more than five times their weekly average trading volumes.

• Dr. Reddy's Laboratories is rising as the company plans to buy Eton Pharmaceuticals' branded and generic injectable products for an upfront payment of Rs 39.1 crore. The deal also involves contingent payments of Rs 352 crore. The portfolio includes new drug applications of biorphen and reziprez injections with nine separate combinations of strength and presentations and one first-to-file approved abbreviated new drug application for cysteine hydrochloride for the US.

• ICICI Securities maintains its ‘Buy’ rating on Whirlpool of India with a target price of Rs 2,000, indicating an upside of 31.7%. The brokerage remains positive on the company’s business model given its strong brand, steady launch of premium products, and established competitive advantages. It expects the company’s revenue to grow at a 17.5% CAGR over FY22-24.

• Hikal is rising as the Bombay High Court orders Mahrashtra's Pollution Control Board to allow manufacturing activities to restart at its Taloja unit.

  #StocksInNews | #Hikal says Bombay HC set aside pollution board direction, and asked authorities to allow the co to resume #Taloja plant #StockMarket #StocksToWatch #StocksInFocus pic.twitter.com/U3nr01dQsn

  — ET NOW (@ETNOWlive) June 27, 2022

• Metal stocks like JSW Steel, Tata Steel, Hindustan Zinc, Vedanta, and Hindalco Industries, among others, are rising in trade. The broader sectoral index Nifty metal is also trading in the green.

• Adani Enterprises' arm Kutch Copper to set up a greenfield copper refinery project to produce 1 million tonnes per annum, in two phases. Kutch Copper signed financing documents with a lenders' consortium led by the State Bank of India. The consortium of banks sanctioned the agreement for raising Rs 6,071 crore through debt for Phase 1 of the project.

• GHCL is rising in trade after announcing that it inaugurated a new spinning unit in Madurai, Tamil Nadu on Friday. The new unit is equipped with 39,600 ring spindles and has a production capacity of 23 tonnes per day.

• Hindustan Copper rises after announcing it considers raising funds by issuing equity shares on Saturday. It plans to issue 9.69 crore equity shares through the qualified institutional placement method with a face value of Rs 5 per share in one or more tranches.

• Zomato's board approves the acquisition of Blinkit, an online food delivery platform, for Rs 4,447.5 crore by offering 62.9 crore shares in the company. Shareholders of Blinkit will roughly get a 6.9% stake in Zomato.

• All IT stocks are trading in the green. Stocks like HCL Technologies, Tech Mahindra, Larsen & Toubro Infotech, MindTree, Mphasis, and Coforge are up by more than 3%. The broader sectoral index Nifty IT is also rising in trade.

• Welspun Corp secures various orders across the oil & gas and water sector of nearly 47,000 million tonnes worth Rs 600 crore. The orders secured will be executed from India and USA. The order also includes the manufacture and supply of 19,700 million tonnes of pipes and 180 bends for the transportation of gas for a pipeline project in Australia. The orders from India will be executed from Welspun Corp’s Anjar plant in H2FY22.

• Ratings agency S&P retains its ‘stable’ outlook with a ‘BBB-‘ long-term rating on ICICI Bank as it expects the bank to sustain its improvement in asset quality. The rating agency expects the bank's asset quality to improve despite an uneven economic recovery in India.

• Reliance Industries is in talks with global banks to raise $8 billion to buy the British Pharma chain, Boots, according to reports. It is planning to raise money from banks like Barclays Bank, Deutsche Bank AG, HSBC, and Standard Chartered. After the acquisition, it plans to merge the assets of Boots with Reliance Retail and get the combined entity under Reliance Retail Ventures.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (701.35, 8.22%), Persistent Systems Ltd. (3,457.05, 6.01%) and JSW Energy Ltd. (218.30, 4.65%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (65.85, -6.60%), Star Health and Allied Insurance Company Ltd. (515.05, -3.41%) and HDFC Asset Management Company Ltd. (1,757.95, -3.20%).

Volume Rockets

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

Top high volume gainers on BSE included Carborundum Universal Ltd. (751.50, 10.41%), One97 Communications Ltd. (701.35, 8.22%) and City Union Bank Ltd. (137.25, 7.77%).

Top high volume losers on BSE were Zomato Ltd. (65.85, -6.60%), Brightcom Group Ltd. (33.10, -4.89%) and HDFC Asset Management Company Ltd. (1,757.95, -3.20%).

SIS Ltd. (452.30, 0.88%) was trading at 15.6 times of weekly average. Hikal Ltd. (263.90, 5.39%) and Jyothy Labs Ltd. (157.15, 2.24%) were trading with volumes 8.3 and 7.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock made 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.

Stock touching their year highs included - Mahindra & Mahindra Ltd. (1,082.70, 0.99%).

Stocks making new 52 weeks lows included - V Mart Retail Ltd. (2,457.35, -1.01%) and Star Health and Allied Insurance Company Ltd. (515.05, -3.41%).

18 stocks climbed above their 200 day SMA including Tata Teleservices (Maharashtra) Ltd. (128.30, 5.42%) and Uflex Ltd. (594.95, 4.86%).