Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising over 19%. The Nifty 50 lost over 260 points and closed below the 17,500 mark. European indices followed the global trend and traded lower than Friday’s levels. Most major Asian indices closed in the red tracking the US indices, which closed lower on Friday. US stocks fell amid rising bond yields. The tech-focused index, NASDAQ 100, fell close to 2% and posted weekly losses for the first time in four weeks. The Dow Jones fell 0.9% while the S&P 500 closed 1.3% lower. Brent crude oil futures traded lower amid concerns over low demand due to slowing economic growth. In addition, investors also assess the impact of power restrictions in some parts of China on economic activity and crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Media and Nifty Bank closed lower than Friday’s levels. Nifty IT lost over 1.98% and closed in the red, tracking the NASDAQ 100, which closed deep in the red on Friday.

Nifty 50 closed at 17,494.35 (-264.1, -1.5%), BSE Sensex closed at 58,773.87 (-872.3, -1.5%) while the broader Nifty 500 closed at 15,002.90 (-233.8, -1.5%)

Market breadth is overwhelmingly negative. Of the 1,931 stocks traded today, 523 were in the positive territory and 1,356 were negative.

• SIS, Pfizer, Advanced Enzyme Technologies, and IIFL Wealth Management are trading with higher volumes as compared to Friday.

• Stocks like Torrent Power, Hikal, Indian Railway Catering & Tourism Corp, Adani Enterprises, and BASF India are in the overbought zone, according to the money flow index or MFI.

• Glenmark Pharmaceuticals, Strides Pharma Science, and Cipla recall products like blood pressure lowering drug, prednisone tablets, and difluprednate ophthalmic emulsion in the United States due to manufacturing issues, according to reports.

• Bofa Securities says that emerging market funds increased their allocation to India to 19.7% in July, compared to 18.1% in June. FII inflows in July were driven by the country’s better positioning compared to other emerging markets.

  #BQMarkets | Emerging market funds have increased allocation to India as the domestic markets, according to #BofA Securities.
  
  Here's why: https://t.co/cuXSARbLAc pic.twitter.com/6EtwFj19tb

  — BQ Prime (@bqprime) August 22, 2022

• Metal stocks like Jindal Steel & Power, Tata Steel and Steel Authority of India (SAIL) fall more than 3% in trade. The broader Nifty Metal index also falls more than 2%.

• Advertising & Media, Integrated Oil & Gas, and Storage Media & Peripherals industries rise by more than 3% in trade today.

• Sanofi India and Alembic Pharmaceuticals hit their 52-week lows of Rs 6,295 and Rs 642, respectively. Sanofi India falls for four consecutive days, while Alembic Pharmaceuticals trades lower for five sessions.

• Media sector rises 11.1% over the past month. Zee Entertainment Enterprises and Sun TV Network rise over 10% outperforming the sector.

• Greenlam Industries is rising as the manufacturing facility it acquired in Gujarat in June commenced commercial production on Saturday. The facility has an installed capacity of 3.4 million laminate sheets per year and the potential to generate revenue of Rs 150 crore per year.

• CCL Products India is trading with more than 14 times its weekly average trading volume. Shilpa Medicare, Aptus Value Housing Finance India, Hitachi Energy India, and Indigo Paints are trading at more than four times their weekly average trading volumes.

• Shilpa Medicare is rising as its arm Shilpa Biologicals completes its phase three of human clinical studies of its first biosimilar and has submitted the dossier to the Central Drugs Standard Control Organisation for review and grant of marketing and manufacturing license.

• ICICI Securities maintains its ‘Add’ rating on Reliance Industries with a target price of Rs 2,805. This indicates an upside of 7.3%. The brokerage remains optimistic about the prospects of the company’s green energy business and expects the consumer segment to maintain its revenue growth momentum over the coming quarters. The brokerage anticipates the company’s profit to grow at a CAGR of 24.2% over FY22-24.

• Nomura initiates coverage on Zomato with a 'Reduce' rating and a target price of Rs 50. The brokerage expects the company's food delivery business to become adjusted EBITDA positive by Q1FY24, excluding its recent Blinkit acquisition.

• Nomura has initiated coverage on #Zomato with a 'Reduce' rating and a target of Rs 50 https://t.co/iG96re0rxu

  — ETMarkets (@ETMarkets) August 22, 2022

• Ratnamani Metals & Tubes receives orders worth Rs 1,186 crore, including domestic orders worth Rs 1,083 crore to be executed over the next two years and export orders aggregating to Rs 103 crore to be executed in FY23.

• Larsen & Toubro bags a contract worth between Rs 2,500–5,000 crore from Indian Oil Corp. The company secures the engineering, procurement, construction and commissioning contract for setting up a residue hydrocracker unit for the Panipat refinery expansion project.

• All realty stocks are trading in the red. Stocks like, DLF, Godrej Properties, Oberoi Realty and Sobha are down by more than 1.5%. The broader sectoral index Nifty Realty is also falling in trade.

• JSW Steel enters into a joint venture agreement with National Steel Holding, a New Zealand-based company engaged in the recycling and processing of metal. The joint venture agreement involves the setting up of scrap shredding facilities in India. The company and National Steel Holding will each hold a 50% stake in the joint venture.

• CDC Group sells a 3.6% stake in IIFL Finance for Rs 453 crore approximately, and Great Terrain Investment sells a 3.8% stake in Computer Age Management Services for Rs 427 crore approximately, in bulk deals on Friday.

• Indian rupee opens lower at 79.81 against the US dollar today, as Asian equities decline amidst the speculation that US Federal Reserve will further raise policy rates.

  Indian rupee opens lower on hawkish Fed outlook https://t.co/qzsw6QCqGa pic.twitter.com/3pwbZCtlvv

  — Reuters (@Reuters) August 22, 2022

• Auto stocks like Maruti Suzuki, Tata Motors, Mahindra & Mahindra among others are falling in trade. All constituents of the broader Nifty Auto index are also trading in the red.

• One97 Communications (Paytm) reappoints Vijay Shekhar Sharma as the MD & CEO of the company for a period of five years. In its annual general meeting on Friday, 99.67% of shareholders voted in favour of Sharma’s re-appointment.

• Adani Power to acquire DB Power in an all-cash deal for Rs 7,017 crore. DB Power owns and operates two thermal power plants of 600 MW each, in Janjgir Champa district, Chhattisgarh.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (432.50, 4.99%), Adani Green Energy Ltd. (2,519.75, 4.50%) and Sun TV Network Ltd. (500.00, 2.89%).

Downers:

Largecap and midcap losers today include Varun Beverages Ltd. (919.75, -6.92%), Hindustan Petroleum Corporation Ltd. (246.65, -6.47%) and Trent Ltd. (1,314.10, -6.01%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Suzlon Energy Ltd. (8.60, 11.69%), Elgi Equipments Ltd. (465.80, 10.52%) and CCL Products India Ltd. (450.70, 7.91%).

Top high volume losers on BSE were Asian Paints Ltd. (3,349.75, -3.81%), Finolex Industries Ltd. (141.75, -2.84%) and AstraZeneca Pharma India Ltd. (3,033.80, -1.84%).

Gillette India Ltd. (5,525.00, 3.89%) was trading at 14.9 times of weekly average. Indigo Paints Ltd. (1,572.15, 4.03%) and Shilpa Medicare Ltd. (390.75, 0.97%) were trading with volumes 6.8 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks hit their 52-week highs, while 4 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (432.50, 4.99%), Grindwell Norton Ltd. (2,096.45, 1.75%) and ITC Ltd. (314.40, 0.77%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (649.70, -0.32%) and Biocon Ltd. (305.50, -0.86%).

4 stocks climbed above their 200 day SMA including Aptus Value Housing Finance India Ltd. (315.45, 2.22%) and Radico Khaitan Ltd. (963.00, 0.65%). 49 stocks slipped below their 200 SMA including Hatsun Agro Products Ltd. (1,061.10, -5.56%) and Jubilant Foodworks Ltd. (564.70, -5.35%).