Trendlyne Analysis

Indian indices closed lower with the volatility index India VIX closing 0.8% down today. European stocks trade lower. Most Asian indices either closed flat or lower as US indices closed in red on Tuesday.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Auto closed in red while Nifty Realty closed flat. Nifty IT closed in the green, despite the NASDAQ 100 closing lower on Tuesday.

Nifty 50 closed at 17,629.50 (-26.1, -0.2%), BSE Sensex closed at 59,028.91 (-168.1, -0.3%) while the broader Nifty 500 closed at 15,323.00 (10.0, 0.1%)

Market breadth is in the green. Of the 1,922 stocks traded today, 1,110 were gainers and 752 were losers.

• Stocks like Rites, GMM Pfaudler, Vijaya Diagnostic Centre, and Astral are in the overbought zone, according to the Money Flow Index or MFI.

• Ambuja Cements touches its all-time high of Rs 446.5 today. This comes ahead of the closure of Adani Group’s open offer at Rs 385 per share, the open offer closes on September 9.

• ICICI Securities maintains 'Buy' rating on Angel One with a target price of Rs 1,830, indicating an upside of 36.6%. The brokerage says that the company maintained its business momentum in August with 9% MoM increase in number of orders and 29% MoM rise in gross client acquisition. It estimates the company's revenue to grow at a CAGR of 12% over FY22-24.

• Deutsche Bank expects India’s overall foreign exchange reserves to decline during FY23, due to the widening current account deficit and interference by the RBI to support the rupee.

  India's overall foreign exchange reserves will deplete further this year due to a ballooning current account deficit & interventions by RBI to support rupee, Deutsche Bank said.#Indianeconomy #RBI #Forexreserves https://t.co/YsGibHRN0p

  — Business Standard (@bsindia) September 7, 2022

• Coal India and Grindwell Norton hit their 52-week highs of Rs 238.6 and Rs 2,290, respectively. Both stocks rise for two consecutive sessions.

• Tamilnad Mercantile Bank’s Rs 831.6-crore IPO gets bids for 2.9X of the available 87.1 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 6.5X of the available 15.8 lakh shares on offer.

• FMCG stocks like ITC, Nestle India, Godrej Consumer Products, Britannia Industries, among others, are rising in trade as palm oil prices fall. The broader sectoral index Nifty FMCG is also trading in the green.

  #CNBCTV18Market | FMCG cos in focus as palm oil prices slip pic.twitter.com/WH4asw6L3r

  — CNBC-TV18 (@CNBCTV18Live) September 7, 2022

• Aarti Industries is planning a capex outlay of Rs 3,000 crore for FY23-24. The company will focus on downstream products in existing and new chemistry value chains like chlorotoluene. It will also focus on custom manufacturing opportunities.

• Cipla is rising as it receives the final approval for its abbreviated new drug application from the US Food and Drug Administration for lenalidomide (generic of revlimid). This drug is used to treat various types of cancer. Revlimid generated sales worth $2.58 billion in the US market over the past year till June.

• CG Power is falling as around 1.3 crore equity shares trade in a block deal, according to reports.

  #CNBCTV18Market | CG Power in focus
  ??Large block deal of 1.3 cr shares change hands
  ??Sources Say Standard Chartered Bank sells entire stake (clean out trade). Few Domestic fund buyers in today’s block
  ??Alert: MFs hold 2.9% & FIIs hold 12.8% stake in CG power as of June 2022 pic.twitter.com/x3d67jO1RR

  — CNBC-TV18 (@CNBCTV18Live) September 7, 2022

• Dixon Technologies is rising as Jefferies remains bullish on the stock with a target price of Rs 5,305, according to reports. The brokerage expects the company to outperform its industry on the back of new product launches, an expanding client base, and also benefit from the production-linked incentive (PLI) schemes.

• Max Ventures and Industries' arm Max Estates acquires Acreage Builders for Rs 291.5 crore. The acquisition is to use Acreage Builders' assets, including the land holdings to develop a commercial project.

• Axis Direct initiates coverage on Indian Hotels with a ‘Buy’ rating and a target price of Rs 360, indicating an upside of 16%. The brokerage believes the company is well-placed to benefit from the recovering hospitality and tourism industry given its robust cash flows, strategic measures, and proactive capex. It expects the company’s net profit to grow at a CAGR of 45.4% over FY23-25.

• Food & Drugs Retailing, Commodity Printing / Stationery, and IT Consulting & Software industries fall more than 7% in the past month.

• Zuari Industries is rising as it signs an MoU with Envien International and Zuari Envien Bioenergy. The company and Envien International will establish a joint venture with 50% stake each. The JV will construct and operate a 150-kilo litres per day ethanol distillery.

• Cements stocks like UltraTech Cement, Ambuja Cements, Shree Cements, ACC, among others, are up by more than 3%. The cement & cement products industry is also rising in trade today.

• Lupin is rising as it signs an exclusive license and supply agreement with DKSH to market biosimilars in the Philippines. According to this agreement, Lupin’s subsidiary Multicare Pharmaceuticals will be responsible for the approvals and distribution of biosimilars. The medicines will be used to treat bone-related disorders and in cases of oncology, ophthalmology, and immunology.

• According to Morgan Stanley, India's upcoming capex cycle is signalling a good earnings season. The brokerage expects strong demand to drive further investments.

  #BrokerageRadar | Morgan Stanley on India's Capex: India's coming capex cycle implies we are in the midst of a strong earnings cycle#Stocks #StocksToWatch pic.twitter.com/WhEKXvqn2T

  — ET NOW (@ETNOWlive) September 7, 2022

• Bajaj Finserv’s subsidiary Bajaj Allianz Life Insurance Co’s total new business premium declines 25.4% MoM to Rs 669 crore. The new business premium falls as its group single premium declines by more than 2X MoM to Rs 232.2 crore.

• Biocon sells 2.1 crore shares (5.4% stake) in Syngene International for Rs 1,220.3 crore in a bulk deal. In another deal, promoter Raja Ganesan Chandramohan sells 54.4 lakh shares (2.5% stake) in Hatsun Agro Products for Rs 537.4 crore.

• InterGlobe Aviation (Indigo) appoints Pieter Elbers as its new Chief Executive Officer. His appointment came into effect on Tuesday.

Riding High:

Largecap and midcap gainers today include Container Corporation of India Ltd. (726.55, 8.55%), Shree Cements Ltd. (23,181.05, 7.05%) and Vodafone Idea Ltd. (9.75, 6.56%).

Downers:

Largecap and midcap losers today include Avenue Supermarts Ltd. (4,426.30, -2.87%), Tata Motors Ltd. (445.85, -2.60%) and InterGlobe Aviation Ltd. (1,977.70, -2.16%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Vakrangee Ltd. (37.05, 12.44%), Wockhardt Ltd. (278.00, 8.81%) and Container Corporation of India Ltd. (726.55, 8.55%).

Top high volume losers on BSE were Sunteck Realty Ltd. (451.20, -4.48%), Bharti Airtel Ltd. (753.10, -1.07%) and 3M India Ltd. (22,780.60, -0.89%).

JK Lakshmi Cement Ltd. (499.65, 6.63%) was trading at 9.2 times of weekly average. Edelweiss Financial Services Ltd. (66.80, 6.54%) and The Ramco Cements Ltd. (772.15, 1.72%) were trading with volumes 8.6 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks made 52-week highs, while 3 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Ambuja Cements Ltd. (448.90, 2.84%), Apollo Tyres Ltd. (274.75, 0.84%) and Blue Dart Express Ltd. (9,050.70, 1.91%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (633.85, -0.44%) and MphasiS Ltd. (2,083.95, 1.11%).

18 stocks climbed above their 200 day SMA including Vakrangee Ltd. (37.05, 12.44%) and Angel One Ltd. (1,486.65, 7.18%). 8 stocks slipped below their 200 SMA including Tata Motors Ltd. (445.85, -2.60%) and Sheela Foam Ltd. (3,117.40, -2.39%).