Trendlyne Analysis

Nifty 50 closed in the green, with the volatility index, India VIX, below 17%. Indian indices closed higher for a fifth straight session. European indices traded lower than Wednesday’s levels ahead of a key European Central Bank meeting. Major Asian indices closed mixed, despite the US indices closing in the green on Wednesday. US stocks rose supported by positive earnings reports. The tech-heavy index, NASDAQ 100 rose 1.6% while the S&P 500 closed 0.6% higher. Brent crude oil futures trade lower as investors remain concerned about reduced demand due to slow global economic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media closed higher than Wednesday’s levels. Nifty IT closed in the green, taking cues from the NASDAQ 100, which rose 1.6% on Wednesday.

Nifty 50 closed at 16,609.80 (89.0, 0.5%), BSE Sensex closed at 55,681.95 (284.4, 0.5%) while the broader Nifty 500 closed at 14,277.35 (113.0, 0.8%)

Market breadth is in the green. Of the 1,896 stocks traded today, 1,119 were on the uptick, and 720 were down.

• Prism Johnson, CreditAccess Grameen, Procter & Gamble Hygiene & Healthcare, and Macrotech Developers are trading with higher volumes as compared to Wednesday.

• Grasim Industries sees a long build-up in its July 28 future series as its open interest rises 1.4 % with a put-call ratio of 0.64.

• Stocks like Aster DM Healthcare, Adani Transmission, Timken India, KRBL, and City Union Bank are in the overbought zone according to the technical indicators relative strength index or RSI and money flow index or MFI.

• PVR is rising as it posts a profit of Rs 53.4 crore compared to a loss of Rs 219.4 crore in Q1FY22. Revenue jumps more than 16X YoY to Rs 981.4 crore on a low base due to covid-19 restrictions last year. The movie exhibition segment’s revenue rises 12X YoY to Rs 980 crore.

• IDBI Bank’s Q1FY23 net profit rises 25.4% YoY to Rs 756.4 crore as provisions fall 47.9% to Rs 959.2 crore. Net interest income falls 5.6% YoY to Rs 4,640.8 crore. The bank's asset quality improves as gross NPAs fall by 281 bps YoY to 19.9% and net NPAs fall by 42 bps YoY to 1.25%.

• Metropolis Healthcare may call off a potential deal with Flipkart over valuation concerns, according to reports.

  #ETNOWExclusive | @MetropolisLab may call off deal mandate for a strategic investor as it cannot get valuation of over $1 bn. @Flipkart - the only contender left - is slowing down talks@nayantararai has the scoop@AmeeraShah #StocksToWatch #StockMarket https://t.co/YbzCEBVYGH

  — ET NOW (@ETNOWlive) July 21, 2022

• Hindustan Zinc is rising as its Q1FY23 net profit surges 55.9% YoY to Rs 3,092 crore and revenue grows by 43.7% YoY to Rs 9,387 crore. Revenue grows on the back of the zinc and lead segment, which rises 54.6% YoY to Rs 8,066 crore. EBITDA margin rises 20bps YoY to 54.7%.

• Media stocks like PVR, Inox Leisure, Sun TV Network, Zee Entertainment Enterprises, and Dish TV India, among others, are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

• Motilal Oswal maintains a ‘Buy’ rating on ICICI Lombard General Insurance Co with a target price of Rs 1,500. This indicates an upside of 18%. The brokerage expects strong premium growth for the company. It believes this growth will be driven by robust new auto sales, health distribution channel growth, and digital capabilities investments. The brokerage estimates the company’s profit to grow at a CAGR of 27% over FY22-24.

• AU Small Finance Bank’s Q1FY23 net profit rises 31.8% YoY to Rs 267.9 crore as interest earned is up 34.5% to Rs 1,820.2 crore. However, net profit falls 22.6% QoQ as total revenue remains flat and interest expended rises by 15.6% QoQ to Rs 844.2 crore. Provisions fall by 84.5% YoY to Rs 38.3 crore. The bank's asset quality improves as gross NPAs fall by 235 bps YoY to 1.9% and net NPAs fall by 170 bps YoY to 0.56%.

• Gland Pharma is trading with more than 17 times its weekly average trading volume. Sonata Software, Aegis Logistics, Tata Communications, and IndusInd Bank are trading at more than six times their weekly average trading volumes.

• Federal Bank partners with the Central Board of Direct Taxes to launch online tax payment services. This will allow taxpayers to pay taxes through the e-pay tax facility in the e-filing portal. The bank’s online tax payment services are effective from July 1.

• Oracle Financial Services Software is falling despite its net profit rising 2.1% QoQ to Rs 491.8 crore and revenue rising 9.8% QoQ to Rs 1,402.5 crore. Revenue grows on the back of the product licenses activities segment rising 10.1% QoQ to Rs 968.6 crore. The company’s operating profit margin rises by 292 bps QoQ to 46.2%.

• ITC touches a 52-week high of Rs 302.2 per share following the company’s annual general meeting.

  #CNBCTV18Market | #ITC crosses ?300/sh for the 1st time since May 2019 pic.twitter.com/APrBcGvR6H

  — CNBC-TV18 (@CNBCTV18Live) July 21, 2022

• Havells India is rising as its revenue rises 62.6% YoY to Rs 4,244.5 crore as all its business verticals see growth. The surge in revenue is driven by the Llyod consumer segment rising 2.2X YoY to Rs 1,093.8 crore and the cable segment growing 47.8% YoY to Rs 1,192.9 crore. However, profit rises by only 3.1% YoY to Rs 234.2 crore as raw material costs rise 85% YoY to Rs 2,391.5 crore and purchase of traded goods rise 2.5X YoY to 797.6 crore. The management says the demand outlook looks stable in the coming quarters.

• Gland Pharma hits a 52-week low after its net profit falls 35% YoY to Rs 229 crore with revenue decreasing 26% to Rs 856.9 crore. The sales were hit because of shutdown of two manufacturing product lines.

  Shares of Gland Pharma hit a 52-week low of Rs 2,232 as they slipped 10% on the BSE in Thursday's intra-day trade. #GlandPharma #Q1Results #earnings #StockMarket #MarketsWithBShttps://t.co/GFAGQIBvSi

  — Business Standard (@bsindia) July 21, 2022

• Ashish Kacholia buys a 1.1% stake in Barbeque-Nation Hospitality worth Rs 44.6 crore during Q1FY23

• Ceat’s Q1FY23 net profit falls 61.4% YoY to Rs 9.2 crore because a 58% YoY increase in raw materials cost to Rs 2,037.5 crore. Gross margins fall by 7.23 percentage points YoY to 31.7% in Q1FY23 despite a 47.8% YoY increase in revenue to Rs 2,818.3 crore.

• IndusInd Bank is rising as its net profit rises 60.5% YoY to Rs 1,631 crore and revenue rises 8% YoY to Rs 8,181.8 crore. Revenue growth is driven by the wholesale banking segment’s revenue rising 32.5% YoY to Rs 2,900.7 crore. Net interest margin rises 15 bps YoY to 4.2% and its asset quality improves as its net non-performing assets fall 17 bps YoY to 0.67%.

• Wipro’s Q1FY23 net profit falls 17% QoQ to Rs 2,563.6 crore with operating profit margin down 200 bps QoQ to 15%. This is because of increase in employee cost by 4% QoQ to Rs 12,613 crore and sub contracting expenses by 3.3% to Rs 2,945 crore. However, the company’s revenue is up 3.2% QoQ to Rs 21,528.6 crore with revenue from IT services increasing 3% QoQ to Rs 21,284.8 crore. Revenue from verticals like energy and manufacturing fall 3.4% and 2.8% QoQ, respectively. Employee attrition rate is down to 23.3% in Q1FY23 from 23.8% in Q4FY22.

Riding High:

Largecap and midcap gainers today include Tata Communications Ltd. (1,077.10, 10.03%), IndusInd Bank Ltd. (948.10, 7.82%) and ABB India Ltd. (2772.75, 6.70%).

Downers:

Largecap and midcap losers today include Gland Pharma Ltd. (2,329.70, -5.81%), Crompton Greaves Consumer Electricals Ltd. (383.55, -3.21%) and JSW Energy Ltd. (235.55, -2.52%).

Volume Shockers

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

Top high volume gainers on BSE included Aegis Logistics Ltd. (244.65, 15.76%), Tata Communications Ltd. (1,077.10, 10.03%) and IndusInd Bank Ltd. (948.10, 7.82%).

Top high volume losers on BSE were Gland Pharma Ltd. (2,329.70, -5.81%), Thyrocare Technologies Ltd. (608.80, -2.08%) and Trident Ltd. (41.05, -1.91%).

Sonata Software Ltd. (715.05, 4.86%) was trading at 18.9 times of weekly average. Eris Lifesciences Ltd. (673.60, 1.34%) and Kajaria Ceramics Ltd. (1,073.65, 7.44%) were trading with volumes 10.6 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks hit their 52-week highs, while 3 stocks hit their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (4,057.05, 1.37%), Bharat Electronics Ltd. (268.70, 5.41%) and Coromandel International Ltd. (1,034.80, 3.95%).

Stocks making new 52 weeks lows included - Thyrocare Technologies Ltd. (608.80, -2.08%) and Gland Pharma Ltd. (2,329.70, -5.81%).

20 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (244.65, 15.76%) and IndusInd Bank Ltd. (948.10, 7.82%). 8 stocks slipped below their 200 SMA including V-Guard Industries Ltd. (224.10, -2.84%) and Jubilant Ingrevia Ltd. (543.55, -2.56%).