Trendlyne Analysis

Nifty 50 closed flat after gyrating between losses and gains on a volatile day of trade. European stocks traded marginally higher as investors await the Bank of England's monetary policy committee meeting scheduled later today. Most major Asian indices closed in the green, tracking the US indices, which closed sharply higher on Wednesday. However, Taiwanese stocks closed lower as China began military drills around Taiwan after US House Speaker Nancy Pelosi’s visit. US stocks rose on Wednesday on the back of decent economic data and strong corporate earnings. The tech-heavy index, NASDAQ 100, rose 2.7% while the Dow Jones closed 1.3% higher. Brent crude oil futures traded higher after closing at a multi-month low on Wednesday due to demand concerns.

Nifty Next 50 closed higher, despite the benchmark index closing flat. Nifty Metal and Nifty Pharma closed higher than Wednesday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which rose 2.7% on Wednesday.

Nifty 50 closed at 17,364.00 (-24.2, -0.1%), BSE Sensex closed at 58,298.80 (-51.7, -0.1%) while the broader Nifty 500 closed at 14,879.20 (1.2, 0.0%)

Market breadth is in the red. Of the 1,889 stocks traded today, 814 were in the positive territory and 1,025 were negative.

• EPL, Mahindra Logistics, Aptus Value Housing Finance India, and Ajanta Pharma are trading with higher volumes as compared to Tuesday.

• Lupin sees a long build-up in its August 25 future series as its open interest rises 19.2% with a put-call ratio of 1.32.

• KR Choksey initiates its coverage on Ashok Leyland with an ‘accumulate’ rating with a target price of Rs 168. This indicates an upside of 13.3%. As the commodity costs are falling, the brokerage expects the company’s profitability to improve due to higher gross margins. Higher volumes could enable operating leverage, which could also boost profits. The brokerage estimates Ashok Leyland’s revenue CAGR of 32.4% over FY22-24.

• Energy stocks like Reliance Industries, Adani Transmission, Adani Green Energy, Oil and Natural Gas Corp, among others, are falling in trade. The broader sectoral index Nifty Energy is also trading in the red.

• Stocks like Adani Transmission, Metro Brands, Adani Enterprises, and Asian Paints are in the overbought zone, according to the technical indicator relative strength index or RSI.

• Public sector banks like State Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, Bank of India, among others, are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

• Indian rupee depreciates 66 paise to Rs 79.82 against the dollar in trade today on speculation of a 50 bps rate hike by US Feds. The rupee hit a record low of Rs 80.06 on July 21.

• Tiger Global Fund’s Internet Fund VI Pte cuts its stake in Zomato to 2.7% from 5.1% between July 25 and August 2.

• Mahindra & Mahindra and Eicher Motors hit their 52-week highs of Rs 1,265 and Rs 3,196.5, respectively. While Mahindra & Mahindra trades higher for nine consecutive days, Eicher Motors rises for four sessions.

• Macrotech Developers is trading with more than 33 times its weekly average trading volume. Kalyan Jewellers India, HLE Glasscoat, Tata Consumer Products, and Lupin are trading at more than eight times their weekly average trading volumes.

• HDFC Bank issues clarification on reports of fundraising, to pay off the liability arising from the merger of HDFC. The bank says that the liabilities of HDFC Limited will be transferred to the Bank post merger.

  #HDFCBank clarifies on news reports claiming that it will need to raise funds to immediately pay off liabilities arising out of merger with #HDFC.
  
  For the latest news & updates visit: https://t.co/gXeGqKxXTH pic.twitter.com/XVTsVSqLfC

  — BQ Prime (@bqprime) August 4, 2022

• IEX is falling as its July power trading volume decreases 1.7% YoY to 7,151 million units. According to the data given by National Load Dispatch Center, energy consumption was also down 2.3% YoY in July. Peak demand fell because of a good monsoon in the last two months.

• PI Industries is rising as its Q1FY23 net profit increases 40.2% YoY to Rs 262.4 crore. A 42% YoY rise in exports helps its revenue rise 29.2% YoY to Rs 1,543.2 crore. Price hikes in the domestic business and a favourable product mix helps its domestic revenue rise during the quarter.

• Uber sells 61.2 crore shares of Zomato worth Rs 3,087.9 crore in a bulk deal on Wednesday. Fidelity Investment buys 5.4 crore shares in Zomato worth Rs 273.6 crore and ICICI Prudential Life Insurance buys 4.5 crore shares in the company worth Rs 226.1 crore in a bulk deal.

• Lupin is rising despite the company posting a net loss for the second consecutive quarter of Rs 89.1 crore in Q1FY23. A fall in net sales by 14.9% YoY and a rise in raw materials expenses, employee benefits expenses and finance costs result in a fall in EBITDA margin by 16.8 percentage points YoY. The management says that the company continues to face price erosion in its US business and inflation in raw materials, however, the India business continues to grow ahead of the market.

• Metal stocks like APL Apollo Tubes, Hindalco Industries, Jindal Steel & Power, and NMDC, among others, are rising in trade. The broader sectoral index Nifty Metal is also trading in green.

• Retail sales for the automotive industry are down in July as total retail sales fall 8% YoY to 14.4 lakh units, according to data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales fall 10.92% YoY to 10 lakh units. Retail sales of car makers also fall slightly by 4.7% YoY to 2.5 lakh units. Three-wheeler and commercial vehicle retail sales grow by 80% and 27% YoY respectively.

  #FADA July Data | Total vehicle retail sales down 8% at 14.4 lakh vs 15.6 lakh (YoY) pic.twitter.com/RTQ26dIhcY

  — CNBC-TV18 (@CNBCTV18Live) August 4, 2022

• Hindalco rises as its subsidiary Novelis reports an increase in revenue by 32% YoY to % $5.1 billion. But its net profit increases only 1.3% YoY in Q1FY23. According to reports, brokerage JP Morgan maintains its 'Overweight' stance on the stock despite its profit rising only marginally. Shipments in the North American market increase on strong demand for can and automotive equipment as semi-conductor supplies improve. However, shipments in the European, Asian and South American markets decline because of inflationary cost pressures.

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

• Vodafone Idea is falling as its net loss widens in Q1FY23 to Rs 7,296.7 crore against Rs 6,563 crore in Q4FY22. However, revenue from services increases marginally by 1.7% QoQ as the average revenue per user rises 3.2% QoQ. The company’s finance costs and network expenses also rise more than 11% QoQ. Its total gross debt stands at Rs 1.9 lakh crore in Q1FY23.

• InterGlobe Aviation’s Q1FY23 loss narrows to Rs 1,064.3 crore as compared to Rs 3,174.2 crore in Q1FY22. Revenue surges 4.3X YoY as flight operations pick up pace post-Covid restrictions. However, aircraft fuel expenses jump nearly 5X YoY because of an increase in aviation turbine fuel prices. Airport fees and charges surge 2.3X YoY. The management plans to increase operational capacity by 70%-80% and says that with high revenue growth and controlled fuel costs the airline may become profitable by Q2FY23.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (1,003.75, 6.49%), Zydus Lifesciences Ltd. (364.60, 5.24%) and Lupin Ltd. (659.95, 5.15%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (1,037.25, -6.12%), Gujarat Gas Ltd. (444.45, -3.98%) and Vodafone Idea Ltd. (8.75, -3.85%).

Volume Shockers

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

Top high volume gainers on BSE included HLE Glasscoat Ltd. (3,495.05, 12.13%), Redington (India) Ltd. (139.55, 9.11%) and Rashtriya Chemicals & Fertilizers Ltd. (94.05, 7.49%).

Top high volume losers on BSE were Macrotech Developers Ltd. (1,037.25, -6.12%), Gujarat Gas Ltd. (444.45, -3.98%) and Cera Sanitaryware Ltd. (4,700.60, -3.65%).

Kalyan Jewellers India Ltd. (70.30, 5.71%) was trading at 19.6 times of weekly average. Lupin Ltd. (659.95, 5.15%) and Tata Consumer Products Ltd. (789.25, -2.89%) were trading with volumes 12.8 and 12.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

20 stocks made 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (347.25, 2.25%), Adani Transmission Ltd. (3,530.45, 0.72%) and Blue Dart Express Ltd. (8,866.70, -0.96%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,395.65, 0.94%) and Zensar Technologies Ltd. (246.70, -1.28%).

12 stocks climbed above their 200 day SMA including Ipca Laboratories Ltd. (1,024.95, 4.81%) and Au Small Finance Bank Ltd. (636.60, 4.43%). 20 stocks slipped below their 200 SMA including Angel One Ltd. (1,253.20, -4.56%) and Balrampur Chini Mills Ltd. (364.50, -4.05%).