Trendlyne Analysis

Indian indices closed in the green with the volatility index, Nifty VIX, falling below 20.5%. Nifty 50 rose 1.1% and closed just below the 16,000 mark. European indices traded sharply higher led by UK stocks. However, most Asian indices closed in the red as investors continue to be concerned over the slow global economic growth induced by the aggressive rate hikes by the global central banks to tame high inflation levels.

US indices closed mixed on Tuesday with the US dollar hovering around a two-decade high against the euro. The tech-heavy index NASDAQ 100 rose 1.7% while the Dow Jones closed 0.4% lower. Crude oil rose after falling over 8% on Tuesday as weakening demand concerns outweigh the tight supply.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green following the benchmark index. Nifty Auto and Nifty Realty closed higher than Tuesday’s levels. Nifty Metal, which opened in the red, closed flat. Nifty IT closed in the green, following the NASDAQ 100, which rose 1.7% on Tuesday.

Nifty 50 closed at 15,989.80 (179.0, 1.1%), BSE Sensex closed at 53,750.97 (616.6, 1.2%) while the broader Nifty 500 closed at 13,631.30 (169.5, 1.3%).

Market breadth is in the green. Of the 1,872 stocks traded today, 1,035 showed gains, and 783 showed losses.

• The Reserve Bank of India eases routes of forex funding by allowing foreign investors to invest in short-term corporate debt and purchase government securities under the fully accessible route. This decision comes with an aim to reduce volatility and global spillovers as the rupee depreciated by 4.1% against the dollar till July 5 in FY23.

• G R Infraprojects, Galaxy Surfactants, ZF Commercial Vehicle Control Systems India, and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Tuesday.

• Kotak Mahindra Bank sees a long build-up in its July 28 future series as its open interest rises 6.5% with put to call ratio of 1.02.

• Indian rupee rises 5 paise from a record low of Rs 79.33 to Rs 79.28 against the dollar in trade today

• Hindustan Zinc and IndiaMART InterMESH hit their 52-week lows of Rs 243 and Rs 3,676 respectively. While Hindustan Zinc falls for two consecutive sessions, IndiaMART InterMESH trades lower for three sessions.

• Emkay Global feels the production-linked incentive scheme can add up to Rs 2.4 lakh crore, or 4% to India's GDP, according to reports. The brokerage adds that since the rollout of PLI schemes, cash ROCE (return on capital employed) improved to 20% in FY22, the highest since FY18.

• Spicejet hits a 52-week low today after aviation regulator DGCA issues a show-cause notice in connection with poor safety measures and maintenance actions. The airline reported at least eight incidents of technical malfunctioning in the last 18 days. The management has 3 weeks to respond to the show-case notice.

  In light of the recent incidences of technical malfunction with regard to @flyspicejet flights in the last 18 days, the @DGCAIndia has issued a show cause notice to the air carrier. pic.twitter.com/1umJSOPhdK

  — MoCA_GoI (@MoCA_GoI) July 6, 2022

• Havells India rises in trade after it announces the initiation of the new air conditioner manufacturing facility at Sri City in Chittoor district of Andhra Pradesh. The proposed capacity addition for Chittoor plant is 11.2 lakh units per annum with an estimated investment of Rs 400 crore.

• Edible oil stocks like Adani Wilmar and Ruchi Soya Industries fall in trade. This comes after the Department of Food & Public Distributions asks companies to reduce the retail price of edible oils within a span of one week, according to reports.

• Auto stocks like Hero MotoCorp, Mahindra & Mahindra, TVS Motor Co, Maruti Suzuki India, and Eicher Motors, among others, are rising in trade. The broader sectoral index BSE Auto is also trading in the green.

• Aurobindo Pharma's arm Eugia Pharma Specialities receives USFDA approval for triamcinolone acetonide injectable suspension used for treatment of intramuscular and intrarticular diseases. The product will launch this month and has estimated market size of $73 million.

• Ceat is trading with more than 11 times its weekly average trading volume. Brightcom Group, KPR Mill, TCNS Clothing Co., and Container Corporation of India are trading at more than five times their weekly average trading volumes.

• Godrej Consumer Products (GCPL) and Dabur India rise as they announce their Q1FY23 business updates. While GCPL expects double-digit sales growth, Dabur expects a single-digit revenue growth because of rising inflation. Inflation is adding pressure on consumption in both urban and rural markets. GCPL expects profits to improve in Q1FY23 and EBITDA margins to go down on a YoY basis. Dabur India expects its price hikes to support margin growth in Q1FY23.

• ICICI Securities maintains its ‘Buy’ rating on CreditAccess Grameen with a target price of Rs 1,300, indicating an upside of 22.7%. The brokerage is positive on the company’s prospects due to its presence in diverse geographical locations, customer-centric business model, and its growing secured portfolio. It expects the company’s profit to grow at a 63.3% CAGR over FY22-24.

• Brokerage Jefferies gives a 'Buy' rating to Supreme Industries with a target price of Rs 2,540, indicating an upside of 40%. It expects the price of the company's key raw materials--PVC--to fall 20% in July, which may improve the affordability and demand for its products in the medium term. The brokerage also expects volumes to grow by 12% CAGR over FY22-25.

• Metal stocks like Hindalco Industries, Vedanta, NMDC, Hindustan Copper, and Jindal Steel & Power, among others, are falling in trade. The broader sectoral index Nifty Metal is also trading in red.

• FMCG stocks like Hindustan Unilever, Nestle India, Britannia Industries, Godrej Consumer Products, among others are trading in the green after palm oil price drops by 10%. The broader sectoral index BSE FMCG Sector is also rising in trade.

  #CNBCTV18Market | #PalmOil hits lower circuit, is down 10% pic.twitter.com/ICod9SBqAX

  — CNBC-TV18 (@CNBCTV18Live) July 6, 2022

• Bajaj Hindusthan Sugar is falling as lenders declare the company to be a non-performing asset after it defaults on its debt payments, according to reports. The company’s gross debt stood at Rs 4,814 crore as of March 2022.

• Paint stocks like Asian Paints, Berger Paints (India), Kansai Nerolac Paints, Shalimar Paints, among others are rising by more than 2% in trade amid fall in global crude oil prices.

  Oil prices dropped $6 as concerns about a possible global recession curtailing demand outweighed supply disruption fears.#Oilprices #recessionhttps://t.co/rlmVebaSQg

  — Business Standard (@bsindia) July 5, 2022

• J Kumar Infraprojects rises after bagging a contract worth Rs 571 crore from the Brihanmumbai Municipal Corporation to design and build a sewer tunnel. J Kumar is executing the project in a joint venture with Michigan Engineers where the former will hold a 60% stake.

• Macrotech Developers’ bookings rise 194% YoY to Rs 2,814 crore despite Q1 being a seasonally weak quarter for the company. Collections in Q1FY23 rise 53% to Rs 2,616 crore.

• Bajaj Finance’s assets under management at the end of Q1FY23 rises 31% YoY to Rs 2.04 lakh crore while deposits increase 22% to Rs 34,100 crore. New loans disbursed are up 15.6% YoY to 74 lakh.

Riding High:

Largecap and midcap gainers today include Kansai Nerolac Paints Ltd. (399.65, 8.73%), Tube Investments of India Ltd. (1,975.75, 8.54%) and Honeywell Automation India Ltd. (35,230.00, 6.81%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (173.50, -8.97%), Oil And Natural Gas Corporation Ltd. (120.95, -5.06%) and PB Fintech Ltd. (572.55, -2.27%).

Volume Shockers

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

Top high volume gainers on BSE included Responsive Industries Ltd. (153.00, 17.83%), Kansai Nerolac Paints Ltd. (399.65, 8.73%) and Tube Investments of India Ltd. (1,975.75, 8.54%).

Top high volume losers on BSE were Cyient Ltd. (736.20, -3.51%), KPR Mill Ltd. (503.05, -1.43%) and Blue Star Ltd. (875.00, -1.10%).

Ceat Ltd. (1,024.45, 7.61%) was trading at 16.0 times of weekly average. Brightcom Group Ltd. (38.00, 4.97%) and Nesco Ltd. (573.00, 2.25%) were trading with volumes 8.6 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks hit their 52-week highs, while 9 stocks hit their 52-week lows.

Stocks touching their year highs included - Blue Dart Express Ltd. (7,969.50, 2.00%), Siemens Ltd. (2,654.85, 3.69%) and Varun Beverages Ltd. (821.00, 3.22%).

Stocks making new 52 weeks lows included - Hindustan Zinc Ltd. (247.05, -0.62%) and IDBI Bank Ltd. (30.75, 0.00%).

12 stocks climbed above their 200 day SMA including Responsive Industries Ltd. (153.00, 17.83%) and Godrej Consumer Products Ltd. (879.95, 5.73%). 3 stocks slipped below their 200 SMA including NTPC Ltd. (138.95, -1.35%) and VIP Industries Ltd. (595.55, -1.21%).