Trendlyne Analysis

Nifty 50 closed in the green after gyrating between losses and gains on a volatile day of trade. European stocks followed the global trend and traded higher than Friday’s levels. Most Asian indices close higher, tracking the US indices which closed in the green on Friday. The S&P 500 snapped its four-day losing streak and closed 1.1% higher while Dow Jones rose over 1%. However, the US indices futures trade in the red ahead of June payroll report this week. Crude oil traded marginally lower after rising over 2% on Friday. Tight crude oil supply due to the geopolitical crisis, and fears of slow economic growth remain the key factors affecting the crude oil price.

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

Nifty 50 closed at 15,835.35 (83.3, 0.5%), BSE Sensex closed at 53,234.77 (326.8, 0.6%) while the broader Nifty 500 closed at 13,472.65 (78.2, 0.6%)

Market breadth is in the green. Of the 1,904 stocks traded today, 1,118 showed gains, and 721 showed losses.

• Symphony, Brightcom Group, Jyothy Labs, and Procter & Gamble Hygiene & Healthcare are trading with higher volumes as compared to Friday.

• Hindustan Unilever sees a long build-up in its Jul 28 future series as its open interest rises 7% with put to call ratio of 0.79.

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

• Tata Power rises as it signs a memorandum of understanding with Tamil Nadu to set up a solar cell and solar module manufacturing plant. It will invest Rs 3,000 crore to set up the plant.

• Tata Power to set up solar manufacturing plant in Tamil Nadu; signs pact for Rs 3,000 cr investment@TataPower @TataCompanies #StocksToWatch pic.twitter.com/Lc72X7v0Xl

  — ET NOW (@ETNOWlive) July 4, 2022

• ITC and Chalet Hotels hit their 52-week highs of Rs 293.3 and Rs 339.3, respectively. Both stocks are rising for three consecutive sessions. 

• Va Tech Wabag rises in trade after securing an EPC (engineering, procurement, and construction) order worth Rs 430 crore from Reliance Industries. The project involves the construction of a 53 million litres per day desalination plant in Jamnagar, Gujarat.

  Shares of VA Tech Wabag rose nearly 4.5% after the pure-play water technology firm bagged an order worth Rs 430 crore from Reliance Industries. #BQStocks
  
  Read all #stockmarket updates: https://t.co/wjgXUIzIyZ pic.twitter.com/KJYPZE61GN

  — BQ Prime (@bqprime) July 4, 2022

• NTPC’s power generation increases 21.7% YoY to 104.4 billion units in Q1FY23, according to reports. In June 2022, power generation rises by 29.3% YoY to 34.8 billion units on account of an increase in demand for power.

• ICICI Direct reiterates its 'BUY' rating on Reliance Industries but cuts its target price to Rs 2,800, indicating an upside of 16%. The brokerage believes that the additional excise duty of Rs 13/litre on diesel and Rs 6/litre on petrol and ATF exports by the Centre will limit the gains of the company. According to the brokerage, the strategy of the company regarding export volumes and the global refining scenario will be the key reasons determining the company's earnings. In the long term, the brokerage believes that the company's consumer business will be the major growth driver.

• Dilip Buildcon rises after emerging as the lowest bidder for a tender floated by the Gujarat Metro Rail Corp worth Rs 702 crore. The project involves the construction of an 8.7 km elevated viaduct and seven metro stations and is expected to be completed within 26 months.

• Procter & Gamble Health is trading with more than nine times its weekly average trading volume. Dilip Buildcon, Blue Star, IFB Industries, and Rallis India are trading at more than two times their weekly average trading volumes.

• Foreign Portfolio Investors (FPIs) withdraw Rs 50,203 crore from the Indian equity market in June 2022. This is the highest net outflow since March 2020.

  FPIs pull out Rs 50k crore from Indian equities in June; 9th straight month of net withdrawal#FPI #IndianEquities #USFed #inflation https://t.co/BuSLwf9c9p

  — ET NOW (@ETNOWlive) July 4, 2022

• Nifty Bank trades in green as banks report their operational update for Q1FY23. AU Small Finance Bank, Federal Bank, IDFC First Bank, and HDFC Bank report an increase in their gross advances in Q1FY23. AU Small Finance Bank’s gross advances rise 42% YoY to Rs 49,366 crore while IDFC First Bank’s CASA deposits rise 22.3% YoY to Rs 46,439 crore. HDFC Bank’s gross loans rise 21.5% YoY to Rs 13.9 lakh crore in Q1FY23.

• Hindustan Zinc’s Q1FY23 mined metal production rises 14% YoY to 2.5 lakh tonnes on the back of higher ore production. However, its mined metal production falls 15% QoQ from 2.95 lakh tonnes on lower ore production and metal grades. Its refined metal production rises 10% YoY to 2.6 lakh tonnes but remains flat sequentially. The company’s integrated zinc production rises 10% YoY to 2.06 lakh tonnes but falls 2% QoQ.

• All metal stocks are trading in the red. Stocks like JSW Steel, Tata Steel, Hindalco Industries, Jindal Steel & Power, NMDC, and Steel Authority of India (SAIL) are down by more than 2%. The broader sectoral index BSE Metal is also falling in trade.

• Hero MotoCorp’s June wholesales rise 3.3% YoY to 4.8 lakh units. Domestic wholesales rise 5.6% YoY to 4.6 lakh units but exports fall 29.3% YoY to 21,657 units.

• Endurance Technologies acquires a 51% stake in Maxwell Energy Systems for Rs 135 crore. Acquisition of stake is through infusion of fresh funds of Rs 71.5 crore and secondary purchase from existing investors of Rs 63.5 crore. The balance 49% stake will be bought in a phased manner over the next five financial years. With this, Maxwell Energy is now a subsidiary of Endurance Technologies.

• Eicher Motors’ arm Royal Enfield’s June wholesales rise 43% YoY to 61,407 units. Domestic wholesales rise 42.6% YoY to 61,407 units and exports rise 54% YoY to 7,233 units.

• InterGlobe Aviation is falling in trade as more than half its flights on Saturday were delayed due to a large number of its cabin crew members not reporting for duty, according to reports. Many cabin crew members reported being sick on Saturday, throwing the airline’s operations into disarray.

• Avenue Supermarts’ (Dmart) standalone revenue rises 95% YoY to Rs 9,806,8 crore in Q1FY23 as lockdown restrictions cease to exist. Q1FY23 standalone revenue is 14% higher than Q4FY22 revenue of Rs 8,606.1 crore. This is 155.8% higher than the standalone revenue number of Rs 3,833.2 crore in Q1FY21.

• Centre restricts exports of diesel, petrol and aviation turbine fuel (ATF) by levying excise duties of Rs 13, Rs 6, and Rs 6 per litre respectively. Centre’s restrictions state that 50% of the oil exported is to be sold in India. According to reports, a duty of Rs 23,250 per million tonne on oil production is expected to hit upstream companies, however, companies with less than 2 million bbl/year of production are exempted.

Riding High:

Largecap and midcap gainers today include IDFC First Bank Ltd. (34.05, 5.58%), Indian Overseas Bank (17.40, 5.14%) and Star Health and Allied Insurance Company Ltd. (497.95, 5.06%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (201.65, -5.70%), JSW Steel Ltd. (551.50, -4.72%) and Adani Green Energy Ltd. (1,883.60, -4.08%).

Volume Shockers

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

Top high volume gainers on BSE included Dilip Buildcon Ltd. (207.80, 9.48%), AIA Engineering Ltd. (2,369.15, 7.10%) and Central Bank of India (17.85, 6.25%).

Top high volume losers on BSE were Heidelberg Cement India Ltd. (168.80, -1.57%), Blue Star Ltd. (883.80, -1.38%) and Dalmia Bharat Ltd. (1,317.80, -0.68%).

Procter & Gamble Health Ltd. (4,205.40, 1.51%) was trading at 9.6 times of weekly average. IFB Industries Ltd. (926.75, 3.65%) and Jubilant Ingrevia Ltd. (506.55, 6.13%) were trading with volumes 5.4 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks took off, crossing 52-week highs, while 1 stock was an underachiever and hit its 52-week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (2,369.15, 7.10%), Blue Dart Express Ltd. (7,772.75, -0.67%) and Coromandel International Ltd. (982.05, 1.74%).

Stock making new 52 weeks lows included - IndiaMART InterMESH Ltd. (3,765.55, -1.39%).

17 stocks climbed above their 200 day SMA including Westlife Development Ltd. (515.35, 4.22%) and Trent Ltd. (1,118.20, 4.16%). 8 stocks slipped below their 200 SMA including Oil India Ltd. (201.65, -5.70%) and Cipla Ltd. (930.65, -1.96%).