Trendlyne Analysis

Nifty 50 rose over 110 points and closed above the 16,000 mark, with the volatility index, India VIX, falling below 18%. Most European indices traded higher than Thursday’s levels amid mixed global cues. Major Asian indices closed mixed tracking the US indices, which also closed mixed on Thursday. The tech-heavy index, NASDAQ 100, rose 0.3% while the Dow Jones closed 0.5% lower. Investors continue to assess the economic impact of aggressive rate hikes by the US Federal reserve to tame multi-decade high inflation levels. Brent crude oil hovered below $100 per barrel after recovering from its sharp fall on Thursday.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Auto and Nifty FMCG closed higher than Thursday’s levels. Nifty IT, which lost about 5% in the last four sessions, closed marginally lower.

Nifty 50 closed at 16,049.20 (110.6, 0.7%), BSE Sensex closed at 53,760.78 (344.6, 0.7%) while the broader Nifty 500 closed at 13,790.20 (87.6, 0.6%).

Market breadth is balanced. Of the 1,882 stocks traded today, 951 were on the uptick, and 865 were down.

• ZF Commercial Vehicle Control Systems India, Mahindra Logistics, Thermax, and Home First Finance Company India are trading with higher volumes as compared to Thursday.

• ACC sees a long build-up in its July 28 future series as its open interest rises 11.9% with put to call ratio of 1.57.

• Brokerage ICICI Securities maintains 'Hold' rating on Mahindra & Mahindra but raises target price to Rs 1,191 (an upside of 4.6%). The brokerage believes that the recent agreement between the company and British International Investments will not give any technological edge to Mahindra & Mahindra but it will help give the best environmental, social and governance practices other than a long-term investment commitment. It also believes that the only change in the brokerage's previous estimate would be a capex saving of Rs 200 crore in FY24E.

• LME Copper falls below $7,000/tonne due to a strengthening dollar

  #MarketAlert | LME Copper trades below $7,000/T for the first since Nov 2020 #Commodities #Copper #MarketsWithETNOW pic.twitter.com/xlSDk435qR

  — ET NOW (@ETNOWlive) July 15, 2022

• Stocks like Hinduja Global Solutions, Ceat, Adani Transmission, Crompton Greaves Consumer Electricals, and CCL Products India are in the overbought zone according to the technical indicators relative strength index or RSI and money flow index or MFI.

• Life Insurance Corporation of India (LIC) reports its Indian embedded value (IEV) at Rs 5.4 lakh crore as on March 2022 against Rs 95,605 crore in March 2021. The change in value of bonds and government securities because of rising interest rates were factored in while calculating IEV. Also, growth in LIC’s policy sales results in net growth in embedded value of Rs 2,000 crore, according to the management.

• Adani Enterprises and Adani Transmission hit their life highs of Rs 2,422.9 and Rs 3,015 respectively. Both stocks are rising for three consecutive days.

• Consumer durables stocks like Titan, Havells India, Crompton Greaves Consumer Electricals, Dixon Technologies (India), Whirlpool of India, Bajaj Electricals, among others are rising in trade. The broader sectoral index BSE Consumer Durables is also trading in the green.

• Federal Bank's Q1FY23 net profit rises 80.8% YoY to Rs 643 crore as net interest earned rises 9% YoY to Rs 3,843 crore. Provisions fall 73.8% YoY to Rs 175.2 crore. The bank's asset quality improves as gross NPAs fall by 84 bps YoY to 2.67% and net NPAs fall by 32 bps YoY to 0.96%.

• HDFC Securities maintains its ‘Add’ rating on Reliance Industries with a target price of Rs 2,825, indicating an upside of 18.8%. The brokerage believes the recent correction in the company’s stock price due to the levy of the special additional export duty is overdone. It remains positive on the company’s prospects as it expects a recovery in the oil-to-chemical segment led by higher price realisation. With regards to Reliance Jio, it anticipates an improvement in subscriber addition and average revenue per unit. Also, it expects further value unlocking in the digital and retail businesses. The brokerage expects the company’s consolidated revenue to grow at a CAGR of 25.1% over FY22-24.

• Syngene International is trading with more than 31 times its weekly average trading volume. UTI Asset Management Company, Latent View Analytics, PB Fintech, and Aster DM Healthcare are trading at more than five times their weekly average trading volumes.

• Tata Steel Long Products falls after reporting a net loss of Rs 329.6 crore in Q1FY23 against a profit of Rs 332.7 crore in Q1FY22. This is because of a 94.1% YoY increase in total expenses to Rs 2,489.5 crore. Revenue rose 18.2% YoY to Rs 1,994.2 crore.

• Auto stocks like Maruti Suzuki India, Mahindra & Mahindra, Tata Motors, Bajaj Auto, Eicher Motors, among others are rising in trade. The broader sectoral index Nifty Auto is also trading in the green.

• Adani Ports is rising as the company winds a privatisation bid for Israel's Haifa Port, a major trade hub on the Mediterranean coast. It also wins the bid to acquire a 30% stake in Gadot, an Israeli chemical, and logistics group for 4.1 billion Israeli New Shekel (approximately Rs 938.4 crore.)

• Yes Bank signs a binding term sheet with JC ARC LLC and JC Flowers Asset Reconstruction (together JC Flowers ARC) in relation to the sale of identified stressed loans of the bank worth Rs 48,000 crore. JC Flowers ARC's bid will be the base bid for sale of the stressed loan assets through Swiss Challenge method.

• Syngene International rises as it inks a 10-year pact with Zoetis to develop a drug that treats osteoarthritis in dogs. This agreement is expected to be worth $500 million for Syngene.

• Angel One is falling despite its Q1FY23 net profit rising 49.5% YoY to Rs 181.5 crore and revenue rising 44.7% YoY to Rs 669.8 crore. The growth in revenue is driven by the broking services segment growing 45.1% YoY to Rs 684.1 crore. The company’s total client base rises 96.2% YoY and 13% QoQ to 1.04 crore and the operating profit margin grows by 71 bps YoY to 37.6%.

• Max Healthcare Institute falls as reports suggest that private equity firm KKR & Co, the company's largest shareholder, plans to sell its entire share (27.5%) in the company for Rs 10,000-12,000 crore.

• Tata Elxsi is rising as its Q1FY23 net profit rises 15.4% QoQ to Rs 184.7 crore and revenue rises 6.5% QoQ to Rs 725.9 crore. Revenue growth is driven by the software development & services segment rising 6.1% QoQ to Rs 710.8 crore, this segment contributes 97.9% to the total revenue of the company. EBITDA margin rises by 30 bps QoQ to 32.8% as revenue increases on the back of higher sales volume.

• Torrent Power rises as it bags a 300 MW wind power project, to be set up in Karnataka, worth Rs 2,600 crore from Solar Energy Corporation of India. The power purchase agreement is for a period of 25 years.

• ACC’s Q2CY22 net profit falls 60% YoY to Rs 227.3 crore. The management attributes this to an increase in fuel costs globally and rising cost of power. The company’s fuel costs increase 58% YoY to Rs 1,311.9 crore. EBITDA margin fell 13.1 percentage points to 9.7% in Q2CY22 from 22.8% in Q2CY21. However, net sales rise 15.3% YoY to Rs 4,393.3 crore. Revenue from the cement segment rises 13% to Rs 4,154 crore. Total sales volume for cement is also up 10.5% YoY to 7.56 million tonnes.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (35.25, 5.22%), Syngene International Ltd. (613.20, 4.37%) and Tata Motors Limited (DVR) (228.20, 4.25%).

Downers:

Largecap and midcap losers today include Jindal Steel & Power Ltd. (345.50, -4.33%), PB Fintech Ltd. (524.15, -3.81%) and 3M India Ltd. (21,928.35, -3.40%).

Volume Rockets

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

Top high volume gainers on BSE included ITI Ltd. (120.60, 11.25%), EPL Ltd. (182.40, 7.71%) and Aster DM Healthcare Ltd. (213.45, 7.34%).

Top high volume losers on BSE were PB Fintech Ltd. (524.15, -3.81%), UTI Asset Management Company Ltd. (629.30, -3.47%) and 3M India Ltd. (21,928.35, -3.40%).

Syngene International Ltd. (613.20, 4.37%) was trading at 9.5 times of weekly average. Eris Lifesciences Ltd. (674.60, 1.96%) and Latent View Analytics Ltd. (351.20, 4.55%) were trading with volumes 8.4 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks took off, crossing 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (2,889.35, 0.01%), Blue Dart Express Ltd. (8,170.50, 0.45%) and Adani Enterprises Ltd. (2,405.25, 0.93%).

Stocks making new 52 weeks lows included - HCL Technologies Ltd. (883.15, -2.20%) and MphasiS Ltd. (2,141.55, 1.44%).

12 stocks climbed above their 200 day SMA including Tata Motors Limited (DVR) (228.20, 4.25%) and Galaxy Surfactants Ltd. (3,052.45, 3.45%). 7 stocks slipped below their 200 SMA including Power Grid Corporation of India Ltd. (209.30, -2.58%) and Garware Technical Fibres Ltd. (3,044.55, -2.06%).