Trendlyne Analysis

Nifty 50 closed in the green, with the volatility index, India VIX, below 17.5%. Indian rupee hit a record low of 80.05 against the US dollar. European stocks traded mostly flat amid mixed global cues. Most Asian indices closed in the green, tracking the US indices futures, which traded higher. However, US indices closed lower on Monday after giving up early gains on a volatile day of trade. The tech-heavy index, NASDAQ 100 closed 0.9% lower while the Dow Jones fell 0.7% on Monday. Crude oil traded flat after rising close to 5% on Monday. Tight crude oil supply due to the geopolitical crisis, and fears of slow economic growth induced by aggressive rate hikes 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 Bank, which opened in the red, closed higher. Nifty IT closed flat despite the NASDAQ 100 closing lower on Monday.

Nifty 50 closed at 16,329.30 (50.8, 0.3%), BSE Sensex closed at 54,767.62 (246.5, 0.5%) while the broader Nifty 500 closed at 14,041.80 (57.4, 0.4%)

Market breadth is in the green. Of the 1,880 stocks traded today, 1,128 were gainers and 712 were losers.

• Brightcom Group, Macrotech Developers, ZF Commercial Vehicle Control Systems India, and Chemplast Sanmar are trading with higher volumes as compared to Monday.

• Polycab India sees a long build-up in its July 28 future series as its open interest rises 12.7% with a put-call ratio of 0.55.

• Polycab India’s Q1FY23 net profit rises 195.5% YoY to Rs 222.5 crore as revenue from operations rises 47.5% YoY to Rs 2,736.5 crore. However, its net profit falls 31.6% QoQ due to revenue from operations falling 31% QoQ and a rise in material cost and employee benefit expenses.

• TV18 Broadcast is falling as its Q1FY23 profit falls 76.6% YoY to Rs 33.7 crore but revenue rises 9.5% YoY to Rs 1,265 crore. The fall in profit is due to operational costs rising 26.9% YoY to Rs 584.4 crore and marketing, distribution and promotional expenses rising 25% YoY to Rs 287.1 crore. The company’s EBITDA margin falls by 11.6 percentage points YoY to 4.6%.

• Surya Roshni rises as the company receives an order worth Rs 91.3 crore from Bharat Gas Resources for supply of 2.3 lakh metres of four and 12 inch API SL grade three layer polyethylene coated line pipes within a period of one year

• HDFC Life Insurance’s Q1FY23 net profit rises 22% YoY to Rs 328.7 crore with first year premium income increasing 32.9% to Rs 1,708.6 crore. New business margin is up 60 bps to 26.8%. Asset under management in Q1FY23 stands at Rs 2 lakh crore, an increase of 10% YoY. The quality of business improves as 13-month persistency ratio increases 200 bps to 88%.

• Mindtree is rising after it partners with a US-based cloud data management and security company Rubrik. Both firms will jointly launch a cyber-recovery platform ‘Mindtree Vault’ which will deal with the ransomware and cyber attacks.

• Sterlite Technologies rises as the company wins deal worth Rs 250 crore with one of India's largest telecom operators. The deal is to provide specialised optic fibres and deployment services to build the telecom operator's network across nine telecom circles in India.

• ICICI Direct maintains its ‘Buy’ rating on HDFC Bank with a target price of Rs 1,650, indicating an upside of 21%. The brokerage remains positive on the company’s prospects given the build-up of its digital and physical infrastructure, branch addition, and growth in its retail segment. It expects the company’s net profit to grow at a CAGR of 19% over FY22-24.

• Advanced Enzyme Technologies is trading with more than 18 times its weekly average trading volume. Great Eastern Shipping Company, Engineers India, Dilip Buildcon, and Grindwell Norton are trading at more than four times their weekly average trading volumes.

• Public sector banks like Bank of Baroda, Canara Bank, Punjab & Sind Bank, among others are rising in trade. The broader Nifty PSU Bank index also trades in the green.

• Pharma stocks like Divi’s Laboratories, Dr. Reddy's Laboratories, Torrent Pharmaceuticals, Biocon, Alkem Laboratories, Zydus Lifesciences, among others are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

• DCM Shriram’s Q1FY23 net profit rises 61.2% YoY to Rs 253.9 crore as total revenue rises 47.5% YoY to Rs 2,999.9 crore. However, net profit falls 36.7% QoQ due to increase in material, employee and, power and fuel expenses.

• Nelco is rising as its Q1FY23 net profit is up 7.8% YoY to Rs 4.7 crore. Its revenue sees a 48.2% rise to Rs 81.6 crore. However, EBITDA margin falls 359 bps YoY to 18.4% in Q1FY23.

• Oil companies like Mangalore Refinery And Petrochemicals, Chennai Petroleum, Oil India, among others are rising in trade as brent crude oil price rises above $ 105 per barrel.

• Alok Industries is falling as its Q1FY23 loss widens 45% YoY to Rs 141.6 crore despite its revenue rising 55.9% YoY to Rs 1,971.5 crore. The increase in loss is due to the cost of materials consumed rising 54.7% YoY to Rs 1,371.8 crore.

• Auto stocks like Mahindra & Mahindra, Eicher Motors, TVS Motors, among others are rising in trade. The broader Nifty Auto index is also trading in the green.

• Mangalore Chemicals & Fertilizers is falling after it announces the shutting down of its phosphatic fertilizer plant. It shut down the plant due to the non-availability of the raw material phosphoric acid. The company is yet to announce the date of resuming operations in the plant.

• Indian rupee depreciates seven paise to another record low of 80.05 against the US dollar in early trade today.

  Rupee falls 7 paise to all-time low of 80.05 against US dollar in early trade. #Rupee #RupeevsDollar #Currency pic.twitter.com/XeYQXkkrPK

  — Business Standard (@bsindia) July 19, 2022

• Arvind is rising after Shiprocket acquires its technology business ‘Omuni’ for Rs 200 crore in a stock and cash deal. Both companies are leaders in in D2C commerce segment. The deal will result in better post-purchase experience for customers.

• Mastek’s arm Mastek Inc. to acquire US-based tech consulting partner Metasoftech Solutions. It will acquire 100% stake in the company for $76.6 million. The acquisition is likely to complete by end of August.

• Tube Investments’ arm inks pact with IPLTech Electric (IPLT) to acquire 65.2% stake, for an amount of Rs 246 crore. IPLT is a startup engaged in manufacturing and sale of heavy electric commercial vehicles.

Riding High:

Largecap and midcap gainers today include Tube Investments of India Ltd. (2,263.75, 12.36%), Oberoi Realty Ltd. (898.80, 4.87%) and Polycab India Ltd. (2,250.80, 4.53%).

Downers:

Largecap and midcap losers today include GAIL (India) Ltd. (140.25, -2.67%), Max Financial Services Ltd. (831.05, -2.08%) and Tata Motors Limited (DVR) (223.95, -2.08%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tube Investments of India Ltd. (2,263.75, 12.36%), Dilip Buildcon Ltd. (219.10, 7.19%) and Advanced Enzyme Technologies Ltd. (294.90, 7.04%).

Top high volume losers on BSE were Grindwell Norton Ltd. (1,679.70, -2.69%), HDFC Life Insurance Company Ltd. (535.90, -1.26%) and Biocon Ltd. (329.05, -1.02%).

Great Eastern Shipping Company Ltd. (441.00, 6.84%) was trading at 17.9 times of weekly average. Engineers India Ltd. (64.20, 5.59%) and TTK Prestige Ltd. (895.00, 6.08%) were trading with volumes 12.0 and 11.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks made 52-week highs,

Stocks touching their year highs included - Adani Transmission Ltd. (3,029.75, 1.65%), AIA Engineering Ltd. (2,433.60, 3.04%) and Eicher Motors Ltd. (3,077.70, 1.36%).

19 stocks climbed above their 200 day SMA including PCBL Ltd. (117.80, 6.51%) and Escorts Kubota Ltd. (1,755.35, 5.27%). 6 stocks slipped below their 200 SMA including Grindwell Norton Ltd. (1,679.70, -2.69%) and Tata Motors Limited (DVR) (223.95, -2.08%).