Trendlyne Analysis

Indian indices closed sharply higher, with the volatility index, India VIX falling below 19%. The Nifty 50 surged over 440 points or 2.6% and closed above the 17,750 mark. European stocks traded higher than Monday, following the Asian indices and US indices futures. Major Asian indices closed in the green, despite the US indices closing in the red on Monday. US stocks fell as investors continue to assess Federal Reserve Chairman Jerome Powell’s hawkish commentary at the central bankers’ conference on Friday. The tech-heavy index NASDAQ 100 extended its decline and fell 1% while the Dow Jones closed 0.6% lower. Brent crude oil futures traded lower after rising over 4% on Monday over supply concerns due to the prospect of OPEC+ output cuts.

Nifty Smallcap 100 and Nifty Next 50 closed in the green, following the benchmark index. Nifty bank and Nifty Realty closed over 3% higher. Nifty IT closed in the green, despite the NASDAQ 100 closing lower on Monday.

Nifty 50 closed at 17,744.20 (431.3, 2.5%) , BSE Sensex closed at 59,537.07 (1,564.5, 2.7%) while the broader Nifty 500 closed at 15,314.75 (342, 2.3%)

Market breadth is overwhelmingly positive. Of the 1,909 stocks traded today, 1,378 were on the uptick, and 469 were down.

• Stocks like Mazagon Dock Shipbuilders, Dhani Services, ABB India, Rites and Poly Medicure are in the overbought zone, according to the relative strength index or RSI.

• Centre is in final stages of talks with the Reserve Bank of India to sell stake in IDBI Bank, according to reports. It is likely to call for expression of interest for the stake sale in September.

• Axis Bank is in talks to acquire a 10% stake worth $9 million in Go Digit Life Insurance, according to reports. This comes after HDFC Bank inked a pact to buy a 9.9% stake in the company last week.

• Automobile wholesales for August can be a mixed bag with passenger and commercial vehicles expected to take the lead. Two-wheeler wholesales will depend on the demand arising in the festive season and tractor sales could go down due to deficit of rainfall in some regions.

  #MarketsWithETNOW | August auto sales to be a mixed bag wherein passenger vehicles and commercial vehicles segment is expected to take the lead, @SrishtiSharma_ tells us more #Motown #Auto #AutoSales pic.twitter.com/L33VFRg0kv

  — ET NOW (@ETNOWlive) August 30, 2022

• Axis Direct maintains its ‘Buy’ rating on Nippon Life Asset Management with a target price of Rs 360, indicating an upside of 17%. The brokerage believes the company is well-placed to make huge market share gains on the back of an extensive distribution network, robust risk management practices, and improving macroeconomic conditions. It expects the company’s net profit to grow at a CAGR of 9.9% over FY22-24.

• Federal Bank and Bajaj Auto hit their 52-week highs of Rs 117.8 and Rs 4,128.9, respectively. Both stocks are rising for two consecutive sessions.

• TD Power Systems rises after its board approves a stock split in the ratio of 1:5. This will need to be approved by shareholders in the upcoming annual general meeting.

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

• ICICI Securities maintains its ‘Add’ rating on Reliance Industries with a target price of Rs 2,755. This indicates an upside of 6%. In light of the announcements at its Annual General Meeting on Monday, the brokerage is very bullish on the company’s green energy business and consumer business segments. However, it still sees a limited upside for the company given its expensive valuation and muted return ratios over the past three years. It expects the company’s revenue to grow at a CAGR of 13.5% over FY22-24.

• Bank of India files a petition with the national company law tribunal (NCLT) to initiate insolvency proceedings against Future Lifestyle Fashions. The company is in process of taking legal advice in this matter.

• IT Networking Equipment, Distributors, Medical Equipment, and Paper & Paper Products’ industries rise by more than 25% in the past month.

• Granules India is rising as the US Food and Drug Administration approves its abbreviated new drug application for loperamide hydrochloride and simethicone tablets. The drug is used to treat and relieve symptoms of diarrhea. The tablets are a generic equivalent of the Imodium multi-symptom relief tablets. The Imodium brand registered an estimated sales of $60 million in the US over the past 12 months.

• Eicher Motors is rising as BofA Securities reiterates its 'Buy' rating and raises its target price to Rs 3,900, on improving growth outlook. The company’s subsidiary Royal Enfield’s new product Hunter and the momentum is topped by targeted marketing and aggressive financing push for other products as well. It also raises its earnings per share estimates for FY24 by 4%.

  #BrokerageRadar | BofA on @EicherMotorsLtd: Maintain Buy; Growth is coming back at Royal Enfield #StockMarket #StocksToWatch #EicherMotors pic.twitter.com/yeVKaxZjhs

  — ET NOW (@ETNOWlive) August 30, 2022

• Power stocks like Adani Green Energy, Power Grid Corp of India, NTPC, Adani Power and Tata Power Co are rising in trade. The broader sectoral index BSE Power is also trading in the green.

• Public sector bank stocks like State Bank of India, Bank of Baroda, Indian Bank, and Punjab & Sind Bank are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in green.

• Ramkrishna Forgings wins an export order worth Rs 20.5 crore ($2.58 million) per annum for the supply of metal bars in the non-auto segment.

  #JustIN | Ramkrishna Forgings bags export order worth Rs 20.5 cr/annum for the supply of metal bars in the non-auto segment pic.twitter.com/7thnibXmYC

  — CNBC-TV18 (@CNBCTV18Live) August 30, 2022

• Nazara Technologies acquires a 100% stake in WildWorks for a cash consideration of Rs 83 crore. WildWorks is a US-based children’s interactive entertainment company. The company expects this acquisition to help it grow in the gamified learning space.

• Fundsmith Emerging Equities sells a 1.11% stake (5.8 lakh shares) in Thyrocare Technologies for Rs 36.2 crore in a bulk deal on Monday.

• India Grid Trust reappoints Harsh Shah as CEO and whole-time Director effective from today. He earlier resigned from India Grid and was relieved from his duties on June 30.

• Krishna Institute of Medical Sciences (KIMS) inks a pact to acquire a 51% stake in SPANV Medisearch Lifesciences. SPANV Medisearch Lifesciences runs Kingsway Hospitals, a multi-speciality hospital. As part of the transaction, KIMS will infuse Rs 80 crore in SPANV which will be used to repay existing debts and strengthen its balance sheet.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (341.05, 7.23%), Adani Total Gas Ltd. (3,744.95, 5.87%) and NHPC Ltd. (38.15, 5.68%).

Downers:

Largecap and midcap losers today include IDBI Bank Ltd. (43.95, -2.55%), Zomato Ltd. (57.95, -2.11%) and NMDC Ltd. (122.25, -1.29%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tata Teleservices (Maharashtra) Ltd. (108.45, 19.97%), JSW Energy Ltd. (341.05, 7.23%) and Shilpa Medicare Ltd. (394.40, 6.94%).

Top high volume loser on BSE was V-Mart Retail Ltd. (2,918.15, -1.57%).

PCBL Ltd. (137.50, 6.05%) was trading at 8.5 times of weekly average. Vaibhav Global Ltd. (347.95, 3.68%) and Kansai Nerolac Paints Ltd. (505.30, 4.16%) were trading with volumes 8.1 and 7.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

27 stocks hit their 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (3,960.70, 2.73%), Aegis Logistics Ltd. (294.10, -0.24%) and Bajaj Auto Ltd. (4,084.85, 1.36%).

Stock making new 52 weeks lows included - Sanofi India Ltd. (6,187.70, 0.47%).

19 stocks climbed above their 200 day SMA including CESC Ltd. (81.45, 4.56%) and Tata Motors Ltd. (471.10, 3.92%). 2 stocks slipped below their 200 SMA including UCO Bank (12.00, 0.00%) and Route Mobile Ltd. (1,519.30, 1.30%).