Trendlyne Analysis

Nifty 50 closed higher, with the Indian volatility index, India VIX, falling below 18%. European stocks traded higher than Thursday’s levels. UK’s GDP contracts 0.1% in Q2CY22 against a 0.8% expansion in Q1CY22. However, the 0.1% fall in Q2 is less than the estimated 0.3% contraction. Major Asian indices closed mixed, tracking the US indices, which closed mixed on Thursday. US stocks lost their gains and closed mixed as investors remain uncertain of the pace of federal funds rate hike by the US Federal Reserve. Investors look ahead to the domestic consumer price index or CPI print to be released later today. Brent crude oil futures traded marginally lower after rising over 2% on Thursday.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, following the benchmark index. Nifty Realty and Nifty Energy closed higher than Thursday’s levels. Nifty IT closed in the red, taking cues from the tech-heavy index, NASDAQ 100, which closed 0.7% lower on Thursday.

Nifty 50 closed at 17,698.15 (39.2, 0.2%), BSE Sensex closed at 59,462.78 (130.2, 0.2%) while the broader Nifty 500 closed at 15,140.55 (45.4, 0.3%)

Market breadth is even. Of the 1,895 stocks traded today, 928 were on the uptick, and 905 were down.

• Pfizer, EPL, GlaxoSmithKline Pharmaceuticals, and PNB Housing Finance are trading with higher volumes as compared to Thursday.

• Indraprastha Gas sees a long build-up in its August 25 future series as its open interest rises 13% with a put-call ratio of 0.95.

• Grasim Industries is rising as its net profit increases 16% YoY to Rs 1,933.4 crore despite elevated raw material costs, and power & fuel expenses. Revenue growth of 40.8% YoY led by the cement and textile businesses. The company shows up on the screener which lists companies with zero promoter pledges.

• Stocks like Adani Enterprises, Tata Chemicals, IDFC First Bank, and Bajaj Finserv are in the overbought zone, according to the technical indicator relative strength index or RSI.

• KR Choksey reiterates its 'Buy' rating on Reliance Industries with a target price of Rs 2,985, indicating an upside of 15.2%. The brokerage believes that retail and Reliance Jio will continue to see higher margins due to improved revenue mix, operating leverage and increased customer engagement. It estimates the company's revenue and EBITDA to grow at a CAGR of 13.4% and 15.6%, respectively, over FY22-24.

• Metal stocks like JSW Steel, Tata Steel, Hindustan Zinc, Hindalco Industries, and Vedanta are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

• Syrma SGS Technology’s Rs 840 crore IPO gets bids for 37% of the available 2.9 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 69% of the available 1.4 crore shares on offer.

• Sunteck Realty is trading flat despite its Q1FY23 net profit growing 8.2X to Rs 24.9 crore. Revenue growth of 54.7% YoY is driven by the mid-income segment. Even though profit rises, the stock shows up in the screener which reflects companies with inefficient use of capital to generate profits as its return on capital employed falls for two consecutive years.

• Tata Chemicals and Trent hit their all-time highs of Rs 1,160 and Rs 1,388.9, respectively. Both stocks are rising for five consecutive sessions.

• Edelweiss maintains its ‘Buy’ rating on Max Healthcare Institute with a target price of Rs 470. This indicates an upside of 26%. The brokerage remains positive on the company’s prospects given its robust balance sheet, asset-light expansion plans, and sector-leading average revenue per occupied bed. It expects the company’s net profit to grow at a CAGR of 23.6% over FY22-24.

• Phoenix Mills is trading with more than seven times its weekly average trading volume. Ipca Laboratories, Mangalore Refinery And Petrochemicals, PNB Housing Finance, and Bharat Forge are trading at more than five times their weekly average trading volumes.

• The Society of Indian Automobile Manufacturers’ (SIAM) data reveals that in July two-wheeler sales rise 9.5% YoY to 13.8 lakh units. Passenger car sales were up 10.3% YoY to 1.43 lakh units.

  #SIAM July Data | Passenger vehicle output up 7% at 3.59 lakh units vs 3.33 lakh units (YoY) pic.twitter.com/SR27yMooB6

  — CNBC-TV18 (@CNBCTV18Live) August 12, 2022

• Other Leisure Facilities, Oil Equipment & Services, and Other Non-Ferrous Metals industries rise by more than 3% in trade today.

• Oil and gas stocks like Indraprastha Gas, Gujarat Gas, Oil And Natural Gas Corp, and Hindustan Petroleum Corp, among others, are rising in trade. The broader sectoral index BSE Oil&Gas is also trading in green.

• Adani Enterprises is rising as it will invest Rs 57,575 crore to set up two projects in the metal sectors of Odisha. The projects include a four million metric tonnes per annum integrated alumina refinery and a thirty million metric tonnes per annum iron ore (value addition) project.

  Billionaire Gautam Adani-led #Adani Group on Thursday said it will invest Rs 57,575 crore to develop two projects in metal sectors in Odisha.https://t.co/TPAluiOhCQ

  — BQ Prime (@bqprime) August 11, 2022

• Aditya Birla Capital and its arm Aditya Birla Health Insurance approve a proposal from a subsidiary of the Abu Dhabi Investment Authority for a capital infusion of Rs 665 crore in Aditya Birla Health Insurance for a 9.99% stake.

• One97 Communications (Paytm) is falling as the management anticipates a slight moderation in growth in the coming quarters. It expects the new RBI norms to add operational complexity to the digital lending business. The company’s loan disbursals in July rises 3X YoY to 29 lakhs and the value of loans disbursed jumps 6X YoY.

  #StocksInNews | @Paytm: July average monthly transacting users at 77.6 mn, up 41% YoY#StockMarket #StocksToWatch #Paytm pic.twitter.com/T6F1FAKC5t

  — ET NOW (@ETNOWlive) August 12, 2022

• Phoenix Mills is rising as it posts a profit of Rs 718.7 crore in Q1FY23 compared to a loss of Rs 24.3 crore in Q1FY22. Revenue surges 188.2% YoY to Rs 574.4 crore on the back of the hospitality and property segments. The stock has a high Trendlyne checklist score of 82.6%.

• Aurobindo Pharma’s Q1FY23 net profit declines 32.4% YoY as raw material costs and other expenses increase. Revenue grows 9.4% YoY driven by the US formulations segment. The company shows up on a screener which lists companies where promoters have increased their pledged shares.

• Syrma SGS Technology raises Rs 252 crore from investors by selling 1.14 crore equity shares for Rs 220 per share. Investors include Nomura, Eastspring investments, Volrado Ventures, Abakkus Emerging Opportunities, Franklin India, IIFL Special Opportunities Fund, and BNP Paribas Arbitrage, among others.

• Apollo Hospital’s Q1FY23 net profit fell 35% YoY to Rs 317.1 crore because of a deferred tax reversal of Rs 154 crore. Revenue grew marginally by 0.9% YoY with an increase in revenue from healthcare services. However, revenue from clinics and the pharmacy distribution segments fell in Q1. It shows up in the screener of stocks that are showing a consistent share price growth with a 5-year price change of more than 200%.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (10,238.05, 7.78%), Bharat Forge Ltd. (790.20, 7.38%) and Zomato Ltd. (61.75, 6.65%).

Downers:

Largecap and midcap losers today include Ipca Laboratories Ltd. (928.05, -8.68%), Divi's Laboratories Ltd. (3,726.20, -5.62%) and One97 Communications Ltd. (787.30, -4.66%).

Volume Shockers

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

Top high volume gainers on BSE included KSB Ltd. (1,712.35, 8.13%), Tata Elxsi Ltd. (10,238.05, 7.78%) and TCNS Clothing Co. Ltd. (644.05, 7.53%).

Top high volume losers on BSE were Ipca Laboratories Ltd. (928.05, -8.68%), Divi's Laboratories Ltd. (3,726.20, -5.62%) and Shriram City Union Finance Ltd. (1,889.40, -5.07%).

Phoenix Mills Ltd. (1,312.35, 3.12%) was trading at 10.1 times of weekly average. Mangalore Refinery And Petrochemicals Ltd. (75.15, 4.59%) and India Cements Ltd. (193.05, 0.63%) were trading with volumes 9.7 and 8.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks made 52-week highs, while 1 stock was an underachiever and hit its 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (3,535.60, 1.19%), Cummins India Ltd. (1,249.75, 0.98%) and ICICI Bank Ltd. (874.40, 1.71%).

Stock making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (652.50, 0.38%).

25 stocks climbed above their 200 day SMA including Indraprastha Gas Ltd. (430.35, 5.45%) and Greaves Cotton Ltd. (171.65, 3.87%). 14 stocks slipped below their 200 SMA including Ipca Laboratories Ltd. (928.05, -8.68%) and Max Healthcare Institute Ltd. (361.90, -2.70%).