Trendlyne Analysis

Nifty 50 closed lower with the volatility index, India VIX, falling below 18.5%. European stocks traded lower than Wednesday’s levels amid weak global cues. Major Asian indices closed mixed despite the US indices closing in the red on Wednesday. US stocks fell after the US consumer price index or CPI rose 9.1% in June, topping analyst estimates. This sharp rise in inflation could lead to a more aggressive rate hike by the US Federal Reserve at its next meeting. On Wednesday, the tech-heavy index, NASDAQ 100, recovered from its sharp fall and closed marginally lower while the Dow Jones fell 0.7%. Crude oil continued to trade below $100 per barrel amid fears of low demand due to slow economic growth.

Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty Energy closed higher than Wednesday’s levels. Nifty IT closed in the red, following the NASDAQ 100, which closed lower on Wednesday.

Nifty 50 closed at 15,938.65 (-28, -0.2%) , BSE Sensex closed at 53,416.15 (-98, -0.2%) while the broader Nifty 500 closed at 13,702.65 (-24.3, -0.2%)

Market breadth is in the red. Of the 1,882 stocks traded today, 647 were gainers and 1,181 were losers.

• Zydus Wellness, Rites, Prism Johnson, and AIA Engineering are trading with higher volumes as compared to Wednesday.

• United Spirits sees a long build-up in its July 28 future series as its open interest rises 1.3% with put to call ratio of 0.62.

• Bharti Airtel allots 7.1 crore shares on a preferential basis to Google International LLC at an issue price of Rs 734 per share. Total transaction amounts to Rs 5,224.3 crore with Google now holding a 1.2% stake in the company. This is the first allotment of shares by Bharti Airtel for the Rs 7,500-crore fundraising deal signed with Google in January.

• Stocks like Hinduja Global Solutions, Varun Beverages, Castrol India, and Ceat are in the overbought zone according to the technical indicators relative strength index or RSI and money flow index or MFI.

• Realty stocks like DLF, Macrotech Developers, Godrej Properties, Oberoi Realty, and Sobha, among others are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

• All IT stocks trade in the red. Stocks like Tata Consultancy Services, HCL Technologies, Larsen & Toubro Infotech, MindTree and Coforge are down by more than 2%. The broader sectoral index Nifty IT also touches its 52-week low.

• Oil and Natural Gas Corp, Reliance Industries, Hindustan Oil Exploration, Hindustan Petroleum Corp, Mangalore Refinery and Petrochemicals, among others, rise amid reports of a cut in windfall gains tax and falling crude prices.

  India is considering lowering the recently-implemented windfall tax as profits of fuel exporters and oil producers dwindle due to the crash in global crude prices, sources say https://t.co/OS7laDumld

  — Bloomberg (@business) July 14, 2022

• Motilal Oswal maintains its ‘Buy’ rating on HCL Technologies despite the company’s net profit falling 8.6% QoQ in Q1FY23. The brokerage remains positive on the company’s prospects given its deep capabilities in infrastructure management services, healthy deal-wins, and robust order pipeline. High exposure to cloud services offers the company resilience during the downtrend in the software industry, the brokerage added. It expects the company’s revenue to grow at a CAGR of 13.1% over FY22-24.

• Sanofi India rises as its board of directors will consider a one-time special interim dividend on July 26.

• Sanofi India is trading with more than 31 times its weekly average trading volume. Orient Electric, ZF Commercial Vehicle Control Systems India, Indoco Remedies, and Hindustan Zinc are trading at more than five times their weekly average trading volumes.

• India’s Wholesale Price Index (WPI) inflation eases to 15.18% in June compared to 15.88% in May. This comes after the Consumer Price Index (CPI) inflation slowed to 7.01% in June 2022 against 7.04% in May 2022.

  India's WPI-based inflation eased slightly to 15.18% in June from a three-decade high of 15.88% the previous month, government data showed on Thursday.#IndianEconomy #WPIInflation #Inflation #economyhttps://t.co/i6mxOdxFII

  — Business Standard (@bsindia) July 14, 2022

• Dabur India to acquire the balance 24% stake in Bangladesh-based Asian Consumer Care for Rs 51 crore. It already holds a 76% stake in the company through its arm Dabur International. It will buy the remaining 24% stake from its joint venture partner Advanced Chemical Industries.

• Pharma stocks like Sun Pharmaceutical Industries, Cipla, Dr. Reddy's Laboratories, Torrent Pharmaceuticals, Abbott India, Zydus Lifesciences, Alkem Laboratories, among others are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

• JSW Energy's arm JSW Neo Energy receives an order from Solar Energy Corp of India for setting up a 300 MW wind energy project.

• Welspun Corp is rising as its associate firm bags a contract to manufacture and supply steel pipes by SWCC. The contract is worth 324 million Saudi riyals (approximately Rs 689.1 crore).

• Pioneer Investment Fund sells its entire stake (1.27%) in Zydus Wellness for Rs 124 crore in a bulk deal on Wednesday.

• NHPC gets approval from the Centre to set up a hydroelectric power project in Sawalkot in Jammu and Kashmir worth Rs 973 crore. The project will generate 1,856 MW of power.

• Hindustan Zinc is rising as its board of directors approves an interim dividend of Rs 21 per equity share, amounting to a total of Rs 8,873.2 crore. The record date is set as July 21.

• Indian rupee falls for the fourth straight session, to another record low of 79.80 against the US dollar in early trade today.

  #Rupee hits record low of 79.80 Against US Dollar pic.twitter.com/nOTP1aWGhx

  — CNBC-TV18 (@CNBCTV18Live) July 14, 2022

• Tata Metaliks is falling as its Q1FY23 net profit declines 98.7% YoY to Rs 1.2 crore as expenses rise, driven by the cost of materials rising 64.2% YoY to Rs 530.9 crore. A drop in domestic steel prices also hurt the company’s profitability. However, its revenue rises 10.5% YoY to Rs 666.4 crore led by an increase in realisation of pig iron and ductile iron pipe by nearly 40% each.

• Infosys' arm to acquire Denmark-based company BASE life science for 110 million euros in an all-cash deal. This acquisition will help increase Infosys’ expertise in life sciences using digital transformation and also expand its market in Europe. The deal is expected to close in Q2FY23.

• Mindtree’s Q1FY23 profit falls marginally by 0.3% QoQ to Rs 471.6 crore, however, its EBIT margin is up 30 bps to 19.2%. Revenue increases 7.7% QoQ to Rs 3,121.1 crore with its dollar revenue rising 4% QoQ to $399.3 million. The company’s order book stands at $570 million, up 46.2% QoQ. Employee attrition rises to 24.5% in Q1FY23 compared to 23.8% in Q4FY22.

Riding High:

Largecap and midcap gainers today include Adani Transmission Ltd. (2,889.15, 5.80%), Hindustan Zinc Ltd. (283.70, 4.44%) and Petronet LNG Ltd. (225.35, 3.70%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (55.65, -4.63%), Varun Beverages Ltd. (834.80, -4.56%) and Persistent Systems Ltd. (3,172.20, -4.41%).

Volume Rockets

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

Top high volume gainers on BSE included Hindustan Zinc Ltd. (283.70, 4.44%), Edelweiss Financial Services Ltd. (57.20, 4.28%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,586.00, 3.79%).

Top high volume losers on BSE were Brightcom Group Ltd. (45.95, -4.96%), MindTree Ltd. (2,786.50, -3.93%) and La Opala RG Ltd. (272.45, -2.38%).

Sanofi India Ltd. (6,576.40, 1.18%) was trading at 36.3 times of weekly average. Orient Electric Ltd. (277.90, -1.68%) and ZF Commercial Vehicle Control Systems India Ltd. (8,073.55, 1.34%) were trading with volumes 10.7 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52 week highs, while 7 stocks tanked below their 52 week lows.

Stock touching their year highs included - Varun Beverages Ltd. (834.80, -4.56%).

Stocks making new 52 weeks lows included - HCL Technologies Ltd. (903.00, -1.61%) and MphasiS Ltd. (2,111.20, -1.67%).

15 stocks climbed above their 200 day SMA including Petronet LNG Ltd. (225.35, 3.70%) and Kalyan Jewellers India Ltd. (65.65, 2.74%). 10 stocks slipped below their 200 SMA including Canara Bank (209.55, -3.96%) and PCBL Ltd. (111.05, -3.52%).