Trendlyne Analysis

Nifty 50 closed in the green with the volatility index, Nifty VIX, falling below 18.5%. Indian indices are up for three straight sessions. European indices traded mixed as investors look ahead to a speech by European Central Bank's President Christine Lagarde.

Major Asian indices closed in the green, tracking the US indices, which closed sharply higher on Thursday. US stocks rose as investors assess the measures taken by the US Federal Reserve to tackle high inflation without causing a recession. The tech-heavy index, NASDAQ 100 rose 2.2% while the Dow Jones closed 1.1% higher. Brent crude oil futures fell marginally after rising 4.5% on Thursday. 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 Energy and Nifty Pharma closed higher than Thursday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which rose 2.2% on Thursday.

Nifty 50 closed at 16,220.60 (87.7, 0.5%), BSE Sensex closed at 54,481.84 (303.4, 0.6%) while the broader Nifty 500 closed at 13,828.25 (62.7, 0.5%)

Market breadth is in the green. Of the 1,877 stocks traded today, 968 were gainers and 835 were losers.

• Brightcom Group, Blue Star, Alkem Laboratories, and Sudarshan Chemical Industries are trading with higher volumes as compared to Thursday.

• SRF sees a long build-up in its July 28 future series as its open interest rises 6.6% with put to call ratio of 0.74.

• Brokerage Jefferies downgrades IT stocks as it expects a US recession to impact their revenues. Its top pick in Infosys among Indian listed IT companies.

  #Jefferies downgrades six IT stocks on U.S. recession fears; #Infosys top pick. #BQStocks
  
  Read more: https://t.co/7na9sVTzMR pic.twitter.com/4ZC777EiUg

  — BQ Prime (@bqprime) July 8, 2022

• Stocks like Cummins India, Ceat, Endurance Technologies, and Siemens are in the overbought zone according to the technical indicator relative strength index or RSI.

• Power stocks like Power Grid, Tata Power, NTPC among others are rising. The broader BSE Power index trades in the green.

• Dr Reddy's Laboratories gets a form 483 from the US FDA with two observations. The observations pertain to a pre-approval inspection at the company's Srikakulam manufacturing unit.

• Varun Beverages and Siemens touch a life high of Rs 849.5 and Rs 2,692.7 respectively. Varun Beverages rises for two consecutive sessions while Siemens rises for three.

• CLSA expects the risk-reward on Hindalco to be favourable as it believes that the stock’s underperformance is overplayed given the strong earnings of the company, according to reports. Hindalco’s foreign subsidiary Novelis’s performance remains stable even though the growth in the cans segment fell globally. The brokerage sees lower risk here, assuming there is an increase in Novelis’s profitability and volumes. It revises its target price to Rs 525 from Rs 580.

• Capital goods stocks like Larsen & Toubro, Finolex Cables, Bharat Forge, Suzlon Energy, and ABB India, among others, are rising in trade. The broader sectoral index BSE Cap Goods is also trading in the green.

• Krishna Institute of Medical Sciences is trading with more than six times its weekly average trading volume. Kalpataru Power Transmissions, Solara Active Pharma Sciences, India Cements and Vaibhav Global are trading at more than five times their weekly average trading volumes.

• Craftsman Automation rises as the company expects business performance to improve driven by the recovery in offtake from the automobile sector over the medium term, according to the FY22 annual report.

• Sugar stocks like Shree Renuka Sugars, EID Parry (India), Balrampur Chini Mills, Dalmia Bharat Sugar and Industries, Dwarikesh Sugar Industries, among others, are rising by more than 2% in trade, as the Centre extends the deadline for the export of sugar by two weeks to July 20.

  India has extended by two weeks a deadline for export of 800,000 tonnes of sugar as monsoon makes it tough for producers to move stocks from factories to ports.#SugarExport #Monsoon2022 #India #Exports https://t.co/6msAzVjKJY

  — Business Standard (@bsindia) July 8, 2022

• ICICI Direct maintains its ‘Buy’ rating on Minda Industries with a target price of Rs 575, indicating an upside of 15%. The brokerage remains positive on the company’s prospects due to rising demand for its products, technology-driven products, and softening raw material prices. It expects the company’s net profit to grow at a CAGR of 41.6% over FY22-24.

• Equity Mutual Funds' net inflow falls by 16.4% MoM to Rs 15,497.7 crore in June 2022. Industry MFs see the biggest rise in outflows by 827.3% MoM to Rs 69,852.9 crore, led by debt schemes, closed-ended schemes (debt and equity), and hybrid schemes. Equity-oriented open-ended schemes saw an inflow of nearly Rs 15,500 crore.

• #MarketsWithETNOW | AMFI June Data
  
  - Total AUM at Rs 37 lk cr vs Rs 37.4 lk cr MoM
  - Net outflow at Rs 69,853 cr vs outflow of Rs 7,533 cr MoM@amfiindia #StockMarket #StocksToWatch #Nifty pic.twitter.com/7VOE2xm2hk

  — ET NOW (@ETNOWlive) July 8, 2022

• Tata Power to invest Rs 75,000 crore in the next five years to expand its renewable energy generation capacity to 15 GW. In FY23, the company will invest Rs 10,000 crore in renewables, and a total capex of Rs 14,000 crore.

• Tata Motors’ arm Jaguar Land Rover’s Q1FY23 retail sales fall 37% YoY to 78,825 units and remain flat on a QoQ basis. Sales fall due to the global chip shortage and Covid lockdowns in China despite the order book growing to 2 lakh units this quarter, the company said. Jaguar’s retail sales rise 4% QoQ and fall 48% YoY to 15,207 units. Land Rover sees its retail sales fall 1% QoQ and 33% YoY to 63,618 units, however, the order book indicates a strong demand for its new models this quarter.

• Indian rupee depreciates 12 paise to 79.25 against the US dollar in early trade today, amid persistent foreign fund outflows.

• Mahindra & Mahindra (M&M) rises after British International Investment (BII) agrees to invest Rs 1,925 crore in M&M's four-wheeler passenger electric vehicle (EVCo) business. EVCo will be incorporated as a wholly-owned subsidiary of M&M where M&M plans a total capital infusion of Rs 8,000 crore over FY24-27. EVCo is valued at an estimate of Rs 70,070 crore.

• Vedanta to acquire the debt-ridden company Athena Chattisgarh Power in an all-cash deal worth Rs 564.6 crore. The company went through the bankruptcy court under the Insolvency and Bankruptcy Code and was under liquidation. With this deal, Vedanta will be able to fulfill its power requirement for its aluminium business. The acquisition is likely to be completed in FY23.

Riding High:

Largecap and midcap gainers today include SRF Ltd. (2,175.50, 4.95%), Larsen & Toubro Ltd. (1,687.45, 4.74%) and Tata Motors Limited (DVR) (220.40, 4.38%).

Downers:

Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (1,393.85, -4.09%), Bandhan Bank Ltd. (271.90, -2.75%) and Ashok Leyland Ltd. (144.10, -2.64%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Uflex Ltd. (634.90, 7.46%), India Cements Ltd. (173.35, 4.93%) and Cyient Ltd. (769.35, 4.75%).

Top high volume losers on BSE were Alembic Pharmaceuticals Ltd. (732.95, -1.51%), Godfrey Phillips India Ltd. (1,070.10, -1.25%) and Krishna Institute of Medical Sciences Ltd. (1,205.00, -1.10%).

Kalpataru Power Transmissions Ltd. (355.50, -0.59%) was trading at 9.0 times of weekly average. Vaibhav Global Ltd. (304.70, -1.01%) and Prism Johnson Ltd. (112.70, 3.87%) were trading with volumes 8.4 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks took off, crossing 5- week highs,

Stocks touching their year highs included - ITC Ltd. (293.05, 0.38%), Mahindra & Mahindra Ltd. (1,133.60, 0.03%) and Siemens Ltd. (2,681.35, 0.67%).

13 stocks climbed above their 200 day SMA including IIFL Wealth Management Ltd. (1,567.45, 2.60%) and VIP Industries Ltd. (636.55, 2.48%). 8 stocks slipped below their 200 SMA including Responsive Industries Ltd. (147.45, -1.90%) and Cholamandalam Investment & Finance Company Ltd. (630.95, -1.75%).