Trendlyne Analysis

Nifty 50 lost over 200 points from its day’s high and closed in the red, with the volatility index, India VIX, rising over 19%. The benchmark index remained volatile today on the back of futures and options August 25 contract expiry day. European indices traded higher than Wednesday as investors await the release of minutes from the European Central Bank's last policy meeting later today.

Most major Asian indices closed in the green, tracking the US indices, which closed higher on Wednesday. The tech-heavy index, NASDAQ 100, rose 0.3% while the Dow Jones closed 0.2% higher. Investors brace for hawkish commentary from the US Federal Reserve Chairman Jerome Powell at a conference scheduled later this week. Crude oil prices traded marginally lower after rising over 5% in the last three trading sessions. Crude oil rose on Wednesday on concerns that the US may not consider additional concessions to Iran in response to the draft agreement that could restore Iran’s nuclear deal.

Nifty Smallcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Bank and Nifty Pharma closed lower than Wednesday. Nifty IT trades flat, despite the NASDAQ 100 closing in the green on Wednesday.

Nifty 50 closed at 17,508.20 (-96.8, -0.6%), BSE Sensex closed at 58,774.72 (-310.7, -0.5%) while the broader Nifty 500 closed at 15,090.60 (-49.8, -0.3%)

Market breadth is in the green. Of the 1,907 stocks traded today, 979 were gainers and 885 were losers.

• Stocks like KRBL, RattanIndia Enterprises, Solar Industries India, and Kalyan Jewellers India are in the overbought zone, according to the money flow index or MFI.

• S&P Global Ratings believes India is well buffered against cyclical difficulties. It has enough foreign exchange reserves to cope with the pressure on credit worthiness. The rating agency expects India's GDP to grow 7.3% in FY23

  India has built up buffers against cyclical difficulties & has ample foreign exchange reserves to withstand pressure on credit worthiness, S&P Global Ratings said.#Forex #Ratingagency #IndianEconomy #forexreserve https://t.co/IQuyEYbZv7

  — Business Standard (@bsindia) August 25, 2022

• City Union Bank and Bank of Baroda hit their 52-week highs of Rs 189.4 and Rs 128, respectively. City Union Bank rises for two sessions, while Bank of Baroda trades higher for four consecutive days.

• Hotel stocks like Chalet Hotels and Royal Orchid Hotels are rising in trade as occupancies improve. Chalet Hotels' MD and CEO, Sanjay Sethi, hints at hiking room rates by 30-40% by next year.

  Hotels Under Spotlight | Room rates next year will be 30-40% above pre-pandemic levels, says Chalet Hotels MD & CEO, Sanjay Sethi. Occupancies have reached peak levels now, Royal Orchid CFO, Amit Jaiswal tells @SumairaAbidi @PavitraParekh1 & @Nigel__DSouza pic.twitter.com/3gohDFsVKg

  — CNBC-TV18 (@CNBCTV18News) August 25, 2022

• HDFC Securities maintains its ‘Sell’ rating on Vinati Organics with a target price of Rs 1,765. This indicates a downside of 19.1%. The brokerage’s negative outlook on the company’s prospects is due to a shift in its revenue mix towards products with low margins. It also believes the company is currently trading at an expensive valuation.

• Dreamfolks Services’ Rs 562-crore IPO gets bids for 6.1X of the available 94.8 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 19.1X of the available 17.2 lakh shares on offer.

• UNO Minda to invest up to Rs 300 crore to expand manufacturing facilities. The capex includes a four-wheeler alloy wheel manufacturing capacity at its Bawal Haryana plant, setting up automotive switches manufacturing plant in Farrukhnagar, and opening a subsidiary and office in Dubai to enhance reach.

• Central Bureau of Investigation (CBI) files a charge sheet against Biocon's arm Biocon Biologics in an alleged bribery case, according to reports. The case is in relation to the arrest of a Biocon Biologics executive and a senior official of the Central Drugs Standard Control Organisation (CDSCO). It is alleged that the Associate Vice President of the company, Praveen Kumar, cleared a bribe payment of Rs 9 lakh to Joint Drug Controller, Eswara Reddy.

• Photographic Products, Computer Hardware, and Household Appliances industries rise by more than 3% in trade today.

• ICICI Securities downgrades its rating on Tata Power to ‘Add’ from ‘Buy’ with a target price of Rs 262, indicating an upside of 13.9%. The brokerage downgrades the company as it believes the stock is currently trading at an expensive valuation. However, it believes the company is the best-placed private player in the power sector given its backward integration, with businesses across the value chain. The brokerage expects the company’s net profit to grow at a CAGR of 16.9% over FY22-24.

• Realty stocks like Indiabulls Real Estate, Phoenix Mills, DLF, and Godrej Properties, among others, are rising in trade. The broader sectoral index Nifty Realty is also trading in green.

• NHPC is rising as its arm NHPC Renewable Energy signs a memorandum of understanding (MoU) with the government of Rajasthan. The MoU pertains to the setting up of 10 GW renewable energy parks in Rajasthan

• Lupin acquires brands ‘Ondero’ and ‘Ondero Met’ for a cash consideration of 26 million euros (Rs 207.6 crore) from Boehringer Ingelheim International, a pharmaceutical company based in Germany. These brands are medicines used for treating diabetic patients and the company expects this acquisition to improve its portfolio of diabetic medicines.

• College Retirement Equity Fund buys a 0.76% stake (45.8 lakh shares) in RBL Bank worth Rs 49.9 crore in a bulk deal on Wednesday.

• Torrent Pharmaceuticals to acquire skincare products manufacturer Curatio Healthcare for approx Rs 2,100 crore, according to reports. The deal is expected to take place within the next two weeks.

• CLSA maintains its 'Sell' rating on Tata Power as the brokerage finds the stock expensive. It has a target price of Rs 212.

  #BrokerageRadar | CLSA on @TataPower: Maintain Sell as the stock remains expensive, targets for 4x PAT over FY22-27 #StockMarket #StocksToWatch #TataPower pic.twitter.com/0lL2zQgIVE

  — ET NOW (@ETNOWlive) August 25, 2022

• All public sector banks are trading in the green. Stocks like Canara Bank, Punjab National Bank, Indian Overseas Bank, Union Bank of India, Indian Bank, among others, are up by more than 2%. The broader sectoral index Nifty PSU Bank is also rising in trade.

• PSP Projects is rising as it bags contracts worth Rs 247.3 crore from the precast and other segments. With the receipt of the current order, the company’s total order inflow in FY23 stands at Rs 1,344.2 crore.

• PB Fintech approves investment of Rs 650 crore in its wholly-owned subsidiary Policybazaar Insurance Brokers. The amount will help in meeting operating expenses and improve brand awareness of Policybazaar Insurance Brokers. It also approves an investment of Rs 250 crore in another subsidiary Paisabazaar Marketing and Consulting for FY23.

• Bharti Airtel's promoter Bharti Telecom will buy a 3.3% stake in the company from Singapore Telecommunication (Singtel) for 2.25 billion Singapore dollars. The transaction will be completed within 90 days. Post this transaction, Singtel's shareholding in Bharti Airtel will be around 10%, while Bharti Telecom's will be 6%.

Riding High:

Largecap and midcap gainers today include Bharat Heavy Electricals Ltd. (57.45, 7.89%), IDBI Bank Ltd. (43.05, 7.36%) and L&T Finance Holdings Ltd. (80.30, 7.07%).

Downers:

Largecap and midcap losers today include Coromandel International Ltd. (1,009.95, -4.60%), Nippon Life India Asset Management Ltd. (303.25, -3.15%) and Emami Ltd. (489.40, -2.54%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Central Bank of India (20.05, 9.86%), Bharat Heavy Electricals Ltd. (57.45, 7.89%) and IDBI Bank Ltd. (43.05, 7.36%).

Top high volume losers on BSE were Coromandel International Ltd. (1,009.95, -4.60%), PB Fintech Ltd. (505.75, -1.36%) and CSB Bank Ltd. (202.45, -0.25%).

Equitas Small Finance Bank Ltd. (46.50, 5.80%) was trading at 18.0 times of weekly average. L&T Finance Holdings Ltd. (80.30, 7.07%) and Cochin Shipyard Ltd. (351.15, 3.05%) were trading with volumes 8.8 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks hit their 52-week highs, while 1 stock hit its 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (3,715.80, 0.42%), Bank of Baroda (125.90, 1.90%) and Cholamandalam Investment & Finance Company Ltd. (785.85, -1.63%).

Stock making new 52 weeks lows included - Sanofi India Ltd. (6,239.30, 0.05%).

26 stocks climbed above their 200 day SMA including Central Bank of India (20.05, 9.86%) and Bharat Heavy Electricals Ltd. (57.45, 7.89%). 6 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.45, -3.43%) and HFCL Ltd. (71.95, -1.91%).