Trendlyne Analysis

Nifty 50 recovered over 230 points from the day’s low and closed above the 17,550 mark on a volatile day of trade. European stocks traded mixed as investors remain uncertain about Central Banks’ monetary policy decisions to combat high inflation levels. Most major Asian indices closed in the red, tracking the US indices, which closed deep in the red on Monday. US stocks fell as the US Federal Reserve Chairman Jerome Powell is expected to reinforce the Fed’s commitment to tighten the monetary policy at the Jackson Hole symposium to be held later this week. The tech-heavy index NASDAQ 100 fell 2.7% while the S&P 500 lost 2.1% on Monday. Crude oil traded in the green after Saudi Arabia warned that OPEC could cut output to address the recent fall in crude oil prices.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Bank closed higher than Monday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which closed deep in the red on Monday.

Nifty 50 closed at 17,623.35 (132.7, 0.8%), BSE Sensex closed at 59,031.30 (257.4, 0.4%) while the broader Nifty 500 closed at 15,127.05 (125.3, 0.8%)

Market breadth is in the green. Of the 1,903 stocks traded today, 1,184 were in the positive territory and 635 were negative.

• Spicejet is rising in trade as it considers raising funds of around Rs 2,000 crore through equity and/or debt , according to reports.

  SpiceJet airline is looking to raise funds to the tune of Rs 2000 cr. Recently the airline board passed the resolution to raise the funds for its sustainability and future expansion: @AjaySingh_SG, @flyspicejet @sameerdixit16 #airlines pic.twitter.com/3FlnezyMMX

  — ET NOW (@ETNOWlive) August 23, 2022

• Stocks like Hinduja Global Solutions, Grindwell Norton, Solar Industries India, and Affle (India) are in the overbought zone, according to the relative strength index or RSI.

• Public sector banks like Bank of Baroda, Canara Bank, Punjab National Bank, Punjab & Sind Bank, and State Bank of India are rising in trade. The broader Nifty PSU Bank index is also trading in the green.

• Dreamfolks Services, the airport service aggregator platform, opens for IPO subscription tomorrow. The price band for the issue is Rs 308-326 per share and is entirely an offer for sale for Rs 562.1 crore. The risk factors for this company include heavy dependence on relationships with airport lounge operators and the demand for air travel.

• Emkay Global recommends a ‘Buy’ on RBL Bank with a target price of Rs 125, according to reports. It remains positive on the bank's focus on increasing its secured assets, and cards business. The brokerage believes that improving its retail and SME loan portfolio will help build assets for future growth.

• Great Eastern Shipping Co and Bharat Electronics hit their all-time highs of Rs 545 and Rs 297.7, respectively. Great Eastern Shipping Co rises for two consecutive days, while Bharat Electronics trades higher for three sessions.

• Axis Direct maintains its ‘Hold’ rating on Tata Consultancy Services with a target price of Rs 3,650. This indicates an upside of 8%. The brokerage believes supply-side constraints may persist, likely impacting margins despite robust deal wins. It expects the company’s net profit to grow at a CAGR of 14.4% over FY22-24.

• Nifty 50 was trading at 17,525.40 (34.7, 0.2%), BSE Sensex was trading at 58,986.21 (212.3, 0.4%) while the broader Nifty 500 was trading at 15,030.30 (28.6, 0.2%).

• Market breadth is in the green. Of the 1,889 stocks traded today, 1,137 were in the positive territory and 685 were negative.

• Unichem Laboratories rises as it receives abbreviated new drug application (ANDA) approval from the US FDA. The approval is to market a generic version of Tegretol (carbamazepine) tablets of Novartis Pharmaceuticals. The drug will be manufactured from the company's Goa plant.

• ICICI Direct maintains its ‘Buy’ rating on Indian Bank with a target price of Rs 210, indicating an upside of 20%. The brokerage remains positive on the bank’s prospects on the back of improvement in asset quality and credit growth outlook. It expects the bank’s net profit to grow at a CAGR of 29% over FY22-24.

• Ratings agency Fitch's arm CreditSights terms Adani Group as "deeply overleveraged" and finds no strong evidence of founders infusing capital. It is concerned about credit metrics and cash flows and the fact that Adani Group is entering unrelated businesses.

  Gautam Adani’s port-to-power conglomerate is “deeply overleveraged” as it invests aggressively across existing as well as new unrelated businesses, predominantly funded with debt, a Fitch Group unit says https://t.co/AEKL9CTYIS

  — Bloomberg (@business) August 23, 2022

• Devyani International falls in trade after Temasek Holdings' arm Dunearn Investments plans to sell 2.6 crore shares (nearly 3% stake), according to reports. The total deal is worth approx $80-86 million.

• Storage Media & Peripherals, Household Products, and Specialty Retail industries rise by more than 3% in trade today.

• RBI Governor Shaktikanta Das says that inflation has moderated from its peak. He says the aim is to bring down the inflation rate below 6%.

  #ETNOWExclusive | Here are the key takeaways from @nikunjdalmia's interview with the RBI Governor, @DasShaktikanta @RBI @FinMinIndia @nsitharaman #Inflation pic.twitter.com/XyZxUmNxsF

  — ET NOW (@ETNOWlive) August 23, 2022

• Sterling and Wilson Renewable Energy wins order worth Rs 2,200 crore for operations and maintenance of four blocks of the proposed solar photovoltaic plant of NTPC Renewable Energy at Khavda RE Power Park, Rann of Kutch, Gujarat.

• IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro and Tech Mahindra are falling in trade. All constituents of the broader Nifty IT index are also trading in the red.

• Infosys is falling amid reports suggesting the company is scaling back the average variable payout of employees to 70% for Q1FY23. The scaling back is due to falling margins and rising employee costs.

• IIFL Finance’s arm IIFL Home Finance approves allotting of 53.76 lakh shares worth Rs 2,200 crore to a wholly-owned subsidiary of Abu Dhabi Investment Authority. The investor will hold a 20% stake in IIFL Home Finance.

• CEO of Cipla, Umang Vohra, expects Indian business worth Rs 10,000 crore to double in the next five years both organically and inorganically. He expects healthcare reach to improve further in rural India. He also expects the business in the US (worth $500 million) to double in the next five years.

  #CNBCTV18Exclusive | Our ?10,000 crore India business has the potential to double in 5 years. New launches are a significant opportunity in the US, says Umang Vohra of Cipla pic.twitter.com/7dzENyLwTt

  — CNBC-TV18 (@CNBCTV18Live) August 23, 2022

• Godrej Agrovet signs three MoUs (memorandum of understanding) with the state governments of Assam, Manipur, and Tripura for the development and promotion of palm oil cultivation. The company is planning a cultivable area of 15,000 hectares in the next five years.

• Future Retail’s financial creditors submit loan claims worth Rs 21,058 crore under the ongoing insolvency process, according to reports. Bank of New York Mellon submitted the largest claim worth Rs 4,670 crore.

Riding High:

Largecap and midcap gainers today include NMDC Ltd. (119.20, 5.77%), IDFC First Bank Ltd. (46.05, 5.50%) and Varun Beverages Ltd. (963.55, 4.76%).

Downers:

Largecap and midcap losers today include Adani Power Ltd. (410.90, -4.99%), Adani Green Energy Ltd. (2,412.90, -4.24%) and MphasiS Ltd. (2,264.95, -3.47%).

Movers and Shakers

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

Top high volume gainers on BSE included Kalyan Jewellers India Ltd. (77.35, 10.11%), Mas Financial Services Ltd. (708.50, 7.37%) and Great Eastern Shipping Company Ltd. (549.65, 5.66%).

Top high volume losers on BSE were Devyani International Ltd. (186.00, -5.22%), Procter & Gamble Health Ltd. (4,296.80, -0.80%) and Quess Corp Ltd. (569.95, -0.42%).

Bayer Cropscience Ltd. (5,298.55, 1.53%) was trading at 14.3 times of weekly average. 3M India Ltd. (2,2374.35, 0.06%) and Zydus Wellness Ltd. (1,616.95, 1.22%) were trading with volumes 8.1 and 7.5 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 3 stocks hit their 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (3,601.90, 3.31%), Bharat Electronics Ltd. (298.45, 3.23%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (977.10, 5.00%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (650.10, 0.06%) and Sanofi India Ltd. (6,271.10, -0.53%).

17 stocks climbed above their 200 day SMA including Aptus Value Housing Finance India Ltd. (349.25, 10.71%) and Suzlon Energy Ltd. (8.95, 4.07%). 18 stocks slipped below their 200 SMA including Hatsun Agro Products Ltd. (1,037.10, -2.26%) and Procter & Gamble Hygiene & Healthcare Ltd. (14,394.95, -1.50%).