Trendlyne Analysis

Indian indices recovered their losses towards the end of the trading session and closed flat on a volatile day of trade. The Nifty 50 closed above the 17,950 mark and closed in the green for an eight straight session. European indices traded higher as investors look ahead to Eurozone’s July inflation print. Most major Asian indices closed lower, tracking the US indices, which closed in the red on Wednesday. However, the US stocks pared their losses after the US Federal Open Market Committee (FOMC) Meeting minutes suggested that the Fed could raise the federal funds rate at a less aggressive pace than anticipated. The Dow Jones fell 0.5% while the S&P 500 closed 0.7% lower. Brent crude oil prices traded marginally higher but continue to hover around its six-month low due to rising output from Russia and demand concerns on the back of slow global economic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, outperforming the benchmark index. Nifty Metal and Nifty Bank closed higher than Wednesday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which fell over 1.2% on Wednesday.

Nifty 50 closed at 17,964.45 (20.2, 0.1%), BSE Sensex closed at 60,298.00 (37.9, 0.1%) while the broader Nifty 500 closed at 15,409.95 (30.9, 0.2%)

Market breadth is in the green. Of the 1,903 stocks traded today, 988 were on the uptick, and 850 were down.

• Star Health and Allied Insurance, Ajanta Pharma, Equitas Small Finance Bank, and Procter & Gamble Hygiene & Healthcare are trading with higher volumes as compared to Wednesday.

• Adani Enterprises sees a long build-up in its August 25 futures series as its open interest rises 2.1% with a put-call ratio of 1.09.

• HDFC Securities maintains its 'Reduce' rating on JK Cements with a target price of Rs 2,475, indicating a downside of 6.7%. The brokerage believes that the commissioning of the company's integrated unit in the central region will increase its grey cement capacity to 25 million metric tonnes in the north and central regions. It estimates sales revenue to grow at a CAGR of 10.7% over FY22-24.

• Stocks like Adani Enterprises, Bajaj Finserv, Trent, Apollo Tyres, and Tata Elxsi are in the overbought zone, according to the technical indicator relative strength index or RSI.

• The board of directors of Tata Power Renewable Energy, an arm of Tata Power, approve the preferential allotment of 8.36 crore equity shares to GreenForest New Energies Bidco. The shares are allotted at Rs 239.2 per share, aggregating to Rs 2,000 crore. This completes the first tranche of the transaction and the second tranche of Rs 2,000 crore will take place in accordance with the agreement.

• Adani Enterprises and SBI Life Insurance hit their all-time highs of Rs 3,152.6 and Rs 1,333, respectively. Adani Enterprises rises for five consecutive days, while SBI Life Insurance trades higher for two sessions.

• Syrma SGS Technology’s Rs 840 crore IPO gets bids for 32.6X of the available 2.9 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 5.5X of the available 1.4 crore shares on offer.

• Tata Motors wins an order of 921 low-floor 12-metre electric buses from Bengaluru Metropolitan Transport Corporation (BMTC).The order is a part of the larger tender by Convergence Energy Services. According to the contract, Tata Motors will supply, operate and maintain the electric buses for 12 years.

  #TataMotors wins order of 921 electric buses from Bengaluru Metropolitan Transport Corporation.
  
  For the latest news & updates visit: https://t.co/gXeGqKQ77P pic.twitter.com/UTAf9c9U49

  — BQ Prime (@bqprime) August 18, 2022

• Dilip Buildcon is rising as the company wins orders worth Rs 1,400.4 crore form the Madhya Pradesh government. The order pertains to engineering, procurement, construction, testing and commissioning of various components of Gandhisagar-2 multi-village scheme for the districts of Mandsaur and Neemuch. The order also includes trial run and operation and maintenance of the entire water supply scheme for 10 years in Madhya Pradesh.

• IT Networking Equipments, Household Products, and Data Processing Services industries rise by more than 3% in trade today.

• Sona BLW Precision Forgings is trading with more than 30 times its weekly average trading volume. Bajaj Holdings & Investment, Sundram Fasteners, Solara Active Pharma Sciences, and Bajaj Electricals are trading at more than four times their weekly average trading volumes.

• ICICI Direct maintains its ‘Buy’ rating on Apollo Tyres with a target price of Rs 290, indicating an upside of 16%. The brokerage expects the company to benefit from the expected rise in demand for tyres on the back of an uptick in demand for passenger and commercial vehicles. It believes the company’s profitability will improve given its healthy cash flow generation and focus on capital efficiency. The brokerage estimates the company’s profit to grow at a CAGR of 40.9% over FY22-24.

• Reliance Jio gains 42.2 lakh wireless subscribers in June on a net basis, while Bharti Airtel adds a net 7.93 lakh subscribers. Vodafone Idea loses 18 lakh subscribers.

  TRAI : 18.8 lakh #Mobile users net added in June Vs 28.5 lakh added in the previous month#telecom #subscriber pic.twitter.com/GbNM3IkvK1

  — CNBC-TV18 (@CNBCTV18Live) August 17, 2022

• Ultratech Cement is rising as it expects its production capacity to increase to 159.25 million tonne per annum (MTPA) after its ongoing expansion plans are completed. The company is currently undertaking a 22.6-MTPA capacity expansion with an investment of Rs 12,866 crore.

• Craftsman Automation rises after it announces the commencement of commercial operations at its new plant situated in Pune, Maharashtra. The existing capacity of the Pune plant is 11.5 lakh units. The company plans to increase its capacity by 2% with an investment of Rs 5 crore, according to reports.

• Power Mech Projects is rising as it bags five orders for flue gas desulphurisation (FGD) projects worth Rs 6,163.2 crore from the Adani Group. The orders involve the installation of 15 FGD retrofits to Adani Group’s coal-based power plants. The projects will be executed over a period of 30 months.

• Hotel and restaurant stocks like Jubilant Foodworks, Indian Hotels, EIH among others, are rising in trade. The rise comes after the union cabinet approves an increase in the limit of the emergency credit line guarantee scheme (ECLGS) from Rs 50,000 crore to Rs 5 lakh crore. This amount will be available to companies in the hotels, restaurants and tourism sector till March 31, 2023.

• Natco Pharma is rising as the US Food and Drug Administration grants tentative approval to its abbreviated new drug application for trabectedin (generic of yondelis). The drug generated annual sales of $49.7 million over the past year till June in the US market.

• CLSA says that all IT companies’ Q1FY23 EBIT margins were below its estimates. The brokerage is concerned about the poor cash conversion by most companies in Q1. It says that Infosys, TCS and HCL Technologies are its preferred stock picks.

  #CNBCTV18Market | Moderating execution costs will guide margin expansion in FY24, Infosys, TCS & HCL Tech are our preferred stock picks, CLSA on IT sector pic.twitter.com/AiGco7yYD3

  — CNBC-TV18 (@CNBCTV18Live) August 18, 2022

• Oil and Natural Gas Corporation signs an agreement with ExxonMobil Corp for exploration of oil and gas in the deep sea on India’s east and west coasts. The nature of the partnership remains undisclosed. However, the companies will focus on exploration projects to increase production and help reduce imports of oil in future.

• Private equity firm Blackstone plans to sell up to a 13.6% stake in Sona BLW Precision Forgings in a block trade today, according to reports. The total deal value is around Rs 3,971 crore.

Riding High:

Largecap and midcap gainers today include Indian Railway Catering & Tourism Corporation Ltd. (714.15, 6.33%), Adani Power Ltd. (399.45, 4.99%) and Adani Enterprises Ltd. (3,153.65, 4.82%).

Downers:

Largecap and midcap losers today include SBI Cards and Payment Services Ltd. (957.85, -4.29%), Sona BLW Precision Forgings Ltd. (518.10, -3.90%) and Oil And Natural Gas Corporation Ltd. (135.55, -2.94%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Jindal Stainless Ltd. (130.05, 7.43%), Bajaj Electricals Ltd. (1,226.15, 6.09%) and Jindal Stainless (Hisar) Ltd. (251.30, 5.86%).

Top high volume losers on BSE were Sona BLW Precision Forgings Ltd. (518.10, -3.90%), Bombay Burmah Trading Corporation Ltd. (892.15, -3.09%) and Dr. Reddy's Laboratories Ltd. (4,225.10, -2.10%).

Bajaj Holdings & Investment Ltd. (5,531.00, 1.83%) was trading at 11.9 times of weekly average. Dhanuka Agritech Ltd. (711.00, 1.56%) and Infibeam Avenues Ltd. (15.80, 4.98%) were trading with volumes 6.7 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks hit their 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (399.45, 4.99%), Adani Transmission Ltd. (3,599.55, 0.05%) and Apollo Tyres Ltd. (266.50, 2.50%).

16 stocks climbed above their 200 day SMA including India Cements Ltd. (204.00, 5.26%) and Bharat Heavy Electricals Ltd. (56.20, 4.56%). 5 stocks slipped below their 200 SMA including TTK Prestige Ltd. (895.75, -1.41%) and Grasim Industries Ltd. (1,613.75, -0.17%).