Trendlyne Analysis

Nifty 50 closed in the green, with the volatility index, India VIX, falling below 17%. Indian indices closed higher for the fourth straight session. UK’s consumer price index rose 9.3% in June, hitting a 40-year high as food and energy prices continued to rise. However, European indices followed the global trend and traded higher than Tuesday’s levels. Asian indices closed in the green, tracking the US indices, which closed sharply higher on Tuesday. US stocks rose on the back of positive earnings reports. The tech-heavy index, NASDAQ 100, rose 3.1% while the Dow Jones closed 2.8% higher. Russian gas supply via the Nord Stream 1 pipeline is set to restart on time on Thursday, easing investors’ concerns about gas supply to Europe. Brent crude oil futures traded marginally lower after rising 1.5% on Tuesday.

Oil and gas stocks rose after the Centre cut windfall tax on the export of crude oil and its products. Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Energy closed higher than Tuesday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which closed sharply higher on Tuesday.

The market closed on an upbeat note. Nifty 50 closed at 16,495.80 (155.3, 1.0%) , BSE Sensex closed at 55,397.53 (629.9, 1.2%) while the broader Nifty 500 closed at 14,143.20 (91.6, 0.7%)

Market breadth is in the green. Of the 1,899 stocks traded today, 1,031 were on the uptrend, and 803 went down.

• Sanofi India, Home First Finance Company India, Go Fashion (India), and IIFL Wealth Management are trading with higher volumes as compared to Tuesday.

• Infosys sees a long build-up in its July 28 future series as its open interest rises 5.7% with a put-call ratio of 0.70

• Stocks like Hinduja Global Solutions, Aster DM Healthcare, Tube Investments of India, Adani Transmission, and Timken India are in the overbought zone according to the technical indicators relative strength index or RSI and money flow index or MFI.

• Bank of India initiates insolvency proceedings against Future Retail

  #NCLT admits BoI petition to initiate insolvency proceedings against #FutureRetail#Amazon's intervention application dismissed in Future Retail case
  
  Alert: Bank of India moved NCLT to seek insolvency proceedings against FRL in April pic.twitter.com/FBOAFYKOL8

  — CNBC-TV18 (@CNBCTV18Live) July 20, 2022

• FMCG stocks like Hindustan Unilever, ITC, Nestle India, Dabur India, Britannia Industries, Godrej Consumer Products, among others, are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

• Syngene International is falling as its Q1FY23 net profit drops 4.4% YoY to Rs 73.9 crore despite its revenue rising 8.4% YoY to Rs 644.5 crore. Profit takes a hit mainly due to employee expenses rising 8.8% YoY to Rs 186.1 crore and other expenses increasing by 52.8% YoY to Rs 121 crore.

• TVS Motors touches a 52-week high of Rs 890 after announcing an investment of Rs 1,000 crore to increase the production of its two-wheeler electric vehicles, according to reports. It plans to double its production capacity to 25,000 units a month by the end of this year.

• HDFC Securities maintains its ‘Buy’ rating on Oberoi Realty with a target price of Rs 1,118. This indicates an upside of 30.4%. The brokerage remains positive on the company’s prospects given its robust sales pipeline, new launches, and strong balance sheet. It expects the company’s revenue to grow at a CAGR of 11.6% over FY22-24.

• Cummins India and Federal Bank hit their 52-week highs of Rs 1,184.6 and Rs 109.4, respectively. While Federal Bank rises for five consecutive sessions, Cummins India trades higher for two sessions.

• Metal stocks like Vedanta, National Aluminium Co, Steel Authority of India, APL Apollo Tubes, and Hindustan Copper, among others, are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

• L&T Finance Holdings' Q1FY23 net profit rises 47.4% YoY to Rs 262 crore, however falls 23% QoQ. Interest income is down 2.1% YoY to Rs 2,946.5 crore but total income rises marginal by 0.6% to Rs 3,135.8 crore. Its retail loan disbursements increase 148% YoY to Rs 8,938 crore with two-wheeler loans rising 84% YoY to Rs 1,517 crore. The company’s net interest margin (including fee income) rises 71 bps YoY to 8.23%.

• PNB Housing Finance is trading with more than eight times its weekly average trading volume. Triveni Turbine, Laxmi Organic Industries, Caplin Point Laboratories, and IIFL Wealth Management are trading at more than five times their weekly average trading volumes.

• Stocks like Jubilant Foodworks, Devyani International, Sapphire Foods India, Restaurant Brands Asia, Barbeque-Nation Hospitality, among others are rising in trade after the Delhi High Court stays the guidelines on levying service charge by the Ministry of Consumer Affairs.

  Delhi High Court stays guidelines of restraining #service charge levy by #restaurants
  
  Alert: Federation Of Hotel & Restaurant Association had challenged the guidelines
  
  Here's more pic.twitter.com/9QSwRKMZDw

  — CNBC-TV18 (@CNBCTV18Live) July 20, 2022

• Rallis India is falling as its Q1FY23 net profit declines 18.1% YoY to Rs 67.5 crore despite its revenue rising 16.5% YoY to Rs 862.8 crore. Revenue grows on the back of price hikes and rise in sales volume but EBITDA margin drops 330 bps YoY to 13.1%.

• Vedanta rises after the company announces a second interim dividend of Rs 19.50 per share for FY 2022-23. The total payout amounts to Rs 7,250 crore.

• ICICI Lombard General Insurance is falling despite reporting a 79.6% YoY rise in net profit to Rs 349 crore. Gross written premium is up 29.6% YoY to Rs 5,529.7 crore while gross direct premium rises 28% to Rs 5,370 crore. Group health insurance sees a revenue growth of 34% YoY to Rs 772 crore and marine insurance sees a rise in revenue by 16.8% to Rs 105.6 crore.

• All IT stocks are trading in the green. Stocks like Tech Mahindra, Larsen & Toubro Infotech, MindTree, Mphasis, L&T Technology Services and Coforge, are up by more than 2%. The broader sectoral index Nifty IT is also rising in trade.

• Ambuja Cements is falling as its Q2CY22 net profit declines 14.2% YoY to Rs 752 crore despite its revenue rising 15.1% YoY to Rs 8,032.9 crore. The drop in profit is due to the power & fuel costs rising 62.6% YoY to Rs 2,632.5 crore and the cost of materials consumed rising 30.3% YoY to Rs 994.2 crore. The company’s EBITDA margin falls by 12.5 percentage points YoY to 14%.

• Grasim Industries rises as its board of directors approve investment of Rs 2,000 crore over the next five years on a B2B e-commerce platform for trading and marketing of building materials.

• Hindustan Unilever rises as its Q1FY23 net profit is up 13.5% YoY to Rs 2,381 crore with revenue increasing 20.4% to Rs 14,757 crore. EBITDA margin falls 110 bps YoY to 23.2%. Revenue from the home care segment sees the highest growth of 29.8% YoY to Rs 4,930 crore. However, total expenses also see a rise of 20.8% to Rs 11,531 crore as cost of materials expenses rises 32%.

• Centre cuts windfall tax on diesel and aviation fuel exports by Rs 2 per litre as global crude oil prices fall. The export tax on diesel and aviation turbine fuel are Rs 11 and Rs 4 per litre, respectively. It rolls back the entire export tax on petrol of Rs 6 per litre while cutting an additional excise duty on domestically produced crude oil by 27% to Rs 17,000 per tonne.

Riding High:

Largecap and midcap gainers today include L&T Technology Services Ltd. (3,406.35, 6.81%), Vedanta Ltd. (253.20, 6.05%) and Oil India Ltd. (197.45, 5.81%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (278.85, -6.63%), ICICI Lombard General Insurance Company Ltd. (1,216.85, -4.22%) and Tube Investments of India Ltd. (2,194.90, -3.04%).

Volume Shockers

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

Top high volume gainers on BSE included KPR Mill Ltd. (557.10, 8.58%), Aavas Financiers Ltd. (2,267.50, 8.03%) and Laxmi Organic Industries Ltd. (325.65, 7.92%).

Top high volume losers on BSE were ICICI Lombard General Insurance Company Ltd. (1,216.85, -4.22%), Hatsun Agro Products Ltd. (929.30, -2.30%) and HDFC Life Insurance Company Ltd. (525.20, -2.00%).

Triveni Turbine Ltd. (167.95, 6.16%) was trading at 18.4 times of weekly average. PNB Housing Finance Ltd. (358.60, 6.00%) and Century Plyboards (India) Ltd. (591.70, 3.18%) were trading with volumes 14.2 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Adani Transmission Ltd. (3,018.75, -0.36%), AIA Engineering Ltd. (2,405.80, -1.14%) and Bajaj Auto Ltd. (4,002.05, 0.00%).

23 stocks climbed above their 200 day SMA including KPIT Technologies Ltd. (532.50, 5.26%) and Gillette India Ltd. (5,396.95, 3.55%). 8 stocks slipped below their 200 SMA including Blue Star Ltd. (995.15, -2.91%) and Havells India Ltd. (1,223.25, -2.82%).