Trendlyne Analysis

Indian indices closed flat after gyrating between losses and gains, with the volatility index, India VIX, at around 20%. European stocks traded in the green as investors look ahead to the US monthly jobs data release later today. However, most major Asian indices closed in the red, despite the US indices closing in the green on Thursday. The US indices snapped their four-day losing streak and closed marginally higher on a volatile day of trade. The S&P 500 rose 0.3% while the Dow Jones closed 0.5% higher. Brent crude oil futures traded higher after falling around 12% in the past three trading sessions.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing flat. Nifty Auto and Nifty Realty closed lower than Thursday’s levels. Nifty IT closed in the red, despite the NASDAQ 100 closing flat on Thursday.

Nifty 50 closed at 17,527.85 (-15.0, -0.1%) , BSE Sensex closed at 58,803.33 (36.7, 0.1%) while the broader Nifty 500 closed at 15,191.25 (-20.0, -0.1%)

Market breadth is in the red. Of the 1,925 stocks traded today, 801 were gainers and 1,066 were losers.

• Stocks like Rites, Mazagon Dock Shipbuilders, Cochin Shipyard, Poly Medicure, and Sterlite Technologies are in the overbought zone, according to the Money Flow Index or MFI.

• HBL Power Systems is rising as it wins multiple orders for the deployment of the train protection system Kavach. The orders have a combined value of Rs 753.9 crore.

• ICICI Securities downgrades SRF to 'Hold' rating from 'Add' with a target price of Rs 2,460, indicating a downside of 3.2%. The brokerage downgrades the stock due to the recent run-up in stock price and near-term pressures in the chemical business. It expects the company's revenue to grow at a CAGR of 10.2% over FY22-24.

• Spicejet is rising as it is set to receive Rs 225 crore as part of the Emergency Credit Line Guarantee Scheme (ECLGS), according to reports. The airline will use this funding to clear statutory dues and payments to lessors.

• Cochin Shipyard rises for eight consecutive sessions and hits a 52-week high of Rs 394.3. This comes after the Prime Minister commissions India’s first indigenous aircraft carrier – INS Vikrant in the Navy in Cochin, Kerala. INS Vikrant will meet the Navy's third aircraft carrier needs.

  #CNBCTV18Market | Cochin Shipyard in focus
  PM Modi Commissions India’s first Indigenous Aircraft Carrier into Navy. Vikrant will operate 30 fighter jets & helicopters. Constructed at Cochin shipyard, aircraft carrier has a crew of >1,500 & will meet Navy's need for 3rd carrier pic.twitter.com/zyQWLBz2bd

  — CNBC-TV18 (@CNBCTV18Live) September 2, 2022

• FMCG sector rises over the past month as its market grows 6% MoM in August after consecutive declines in the past months, according to reports. Rise in demand for personal care and commodity products aid the growth of FMCG market. Trendlyne's Dashboard shows that FMCG sector rose 1.4% over the past month.

• Ashika Research maintains its ‘Buy’ rating on Tata Consultancy Services with a target price of Rs 3,650. This indicates an upside of 13.8%. The brokerage believes the company is well-equipped to withstand the weakening business environment given its order book and high exposure to long-duration contracts. It expects the company’s net profit to grow at a CAGR of 11.8% over FY22-24.

• GMR Infrastructure is rising as its subsidiary GMR Airports International BV (GAIBV) inks a pact with Aboitiz InfraCapital (AIC) to acquire shares in GMR-Megawide Cebu Airport Corp (GMCAC)- a JV between GAIBV and Megawide Construction Corp. The companies will sell their existing stake in GMCAC to AIC at an enterprise value of Rs 7,050 crore.

• UPL appoints Mike Frank as the Chief Executive Officer of UPL’s Global Crop Protection business which manages all crop protection assets outside of India.

• Hero MotoCorp’s August wholesales rise 1.9% YoY to 4.62 lakh units, led by a 2.4% YoY growth in motorcycle wholesales. The company expects the demand environment to improve in the coming months on account of the festive season, better monsoons, and positive consumer sentiments.

• NTPC hits a 52-week high of Rs 166.4, after ArcelorMittal, Brookfield, Canada Pension Plan Investment Board, among others, express an interest to buy a stake in its arm NTPC Green Energy.

  Shares NTPC hit 52-week high of Rs 166.35, up 4% on the BSE in Friday’s trade as bids lined up for minority stake sale in its Green Energy arm. #NTPC #StockMarket #Markets #MarketsWithBS https://t.co/gkN4Qj3YwV

  — Business Standard (@bsindia) September 2, 2022

• Adani Ports & Special Economic Zone is rising as its cargo volumes in August rises 18% YoY to 29.3 million metric tonnes (MMT). From April 2022 to August 2022, the company handled 151.4 MMT of cargo, indicating a growth of 11% YoY.

• Shree Cements is falling as the National Stock Exchange (NSE) removes the stock from Nifty 50 in its semi-annual rearrangement of stocks. Adani Enterprises will replace Shree Cements in the Nifty 50 list from September 30.

• The National Stock Exchange (NSE), as part of its periodic review, rearranges a few stocks in the Nifty Next 50.

  Here's a look at the inclusions and exclusions from #NIFTY Next 50 Companies@Adani_Gas @BEL_CorpCom @HALHQBLR @IRCTCofficial @Mphasis @shms_healthIT @shreecementltd @AdaniOnline #JubilantFood @LupinGlobal @Mindtree_Ltd @pnbindia @SAILsteel @ZydusUniverse pic.twitter.com/MuYhLXwXrT

  — ET NOW (@ETNOWlive) September 1, 2022

• Promoter Sunita Sandip Gupta sells a 1.07% stake (6.7 lakh shares) in Route Mobile for Rs 96.7 crore in a bulk deal on Thursday.

• General Atlantic Singapore sells a 2.07% stake (16.6 lakh shares) in Krishna Institute of Medical Sciences (KIMS) for Rs 204.2 crore in a bulk deal on Thursday. In another deal, Emerald Investments picked up a 1.96% stake (15.7 lakh shares) in KIMS for Rs 193.1 crore.

• Eicher Motors’ arm Royal Enfield’s August wholesales rise 53% YoY to 70,112 units. The company’s CEO says that the increase in sales is because of the launch of its new bike at the beginning of the month.

Riding High:

Largecap and midcap gainers today include Astral Ltd. (2,314.45, 6.12%), Patanjali Foods Ltd. (1,256.15, 4.18%) and Adani Enterprises Ltd. (3,355.80, 3.79%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (59.75, -4.32%), Tata Elxsi Ltd. (8,707.25, -3.47%) and Coromandel International Ltd. (1,045.40, -3.35%).

Movers and Shakers

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

Top high volume gainers on BSE included EIH Ltd. (187.95, 17.76%), TCNS Clothing Co. Ltd. (663.15, 11.75%) and GMM Pfaudler Ltd. (1,825.80, 10.29%).

Top high volume losers on BSE were Honeywell Automation India Ltd. (42,202.45, -1.72%), Akzo Nobel India Ltd. (1,940.35, -0.73%) and Finolex Industries Ltd. (147.20, -0.54%).

Sheela Foam Ltd. (3,242.90, 8.50%) was trading at 9.8 times of weekly average. Mahindra Holidays & Resorts India Ltd. (284.05, 7.78%) and FDC Ltd. (273.60, 2.82%) were trading with volumes 8.1 and 8.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

30 stocks hit their 52 week highs, while 3 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Ashok Leyland Ltd. (163.65, 0.55%), Bank of Baroda (131.15, -1.72%) and Bharat Electronics Ltd. (324.55, 1.49%).

Stocks making new 52 weeks lows included - Biocon Ltd. (295.60, -1.99%) and Natco Pharma Ltd. (608.80, -1.02%).

12 stocks climbed above their 200 day SMA including Sheela Foam Ltd. (3,242.90, 8.50%) and Varroc Engineering Ltd. (380.25, 7.40%). 7 stocks slipped below their 200 SMA including Dhanuka Agritech Ltd. (718.95, -2.47%) and DCM Shriram Ltd. (1,023.00, -2.25%).