Trendlyne Marketwatch
Trendlyne Marketwatch
21 Sep 2022, 03:50PM
Market closes lower, ICICI Securities keeps 'Buy' rating on MCX

Trendlyne Analysis

Nifty 50 closed in the red, with the volatility index, India VIX, rising significantly. European indices traded in the red, taking cues from the global markets as Russian President Vladimir Putin announces partial mobilization of the country's two million-strong military reserve. Major Asian indices closed in the red, tracking the US indices, which closed lower on Tuesday. US stocks fell as investors braced for another 75 bps interest rate hike from the US Federal Reserve later in the day. The tech-heavy NASDAQ 100 fell 0.9% while the Dow Jones closed over 1% lower. Brent crude oil futures traded higher after falling 0.8% on Tuesday as traders look ahead to the interest rate hike decision by the US Fed.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Energy closed lower than Tuesday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed lower on Tuesday.

Nifty 50 closed at 17,715.90 (-100.4, -0.6%), BSE Sensex closed at 59,456.78 (-263.0, -0.4%) while the broader Nifty 500 closed at 15,356.80 (-113.6, -0.7%)

Market breadth is highly negative. Of the 1,928 stocks traded today, 535 were on the uptrend, and 1,349 went down.

  • Stocks like Tata Steel Long Products, India Cements, PNB Housing Finance, and Adani Enterprises are in the overbought zone, according to the Money Flow Index or MFI.

  • Axis Securities reiterates its 'Hold' rating on Ambuja Cements with a target price of Rs 570. This indicates an upside of almost 1%. With the company's acquisition by Adani Group, the brokerage expects aggressive capacity expansion from the new management. It estimates the company's net profit to grow at a CAGR of 9.8% over FY22-24.

  • SP Apparels is rising as its board of directors approves the proposal to buyback 6 lakh shares (2.3% stake) for Rs 585 per share. The company sets October 7 as the record date.

  • Sona BLW Precision Forgings and Indian Energy Exchange hit their 52-week lows of Rs 498.7 and Rs 150, respectively. Both stocks fall for five consecutive sessions.

  • Spicejet is falling as the company sends 80 pilots on leave without pay to rationalise costs, according to reports.

  • The Asian Development Bank lowers India’s FY23 GDP growth forecast to 7% from its earlier estimate of 7.2%. This comes after an increase in inflation and tightening of monetary policy.

  • Commercial Services & Supplies, Cement and Construction, and Utilities   sectors fall more than 1.5% in trade today.

  • According to CRISIL, gross non-performing assets of Indian banks could drop by 90 bps YoY to 5% by March 2023.

  • Gateway Distriparks rises after it announces acquisition of land near Dhanakya, Jaipur to begin the construction of a rail-linked inland container depot. The cost of this project is around Rs 77 crore.

  • ICICI Securities maintains its ‘Buy’ rating on Multi Commodity Exchange of India with a target price of Rs 1,700. This implies an upside of 38.7%. The brokerage expects the company’s rising options average daily trading volume and new product launches to improve profitability in the coming quarters. It anticipates the company’s revenue to grow at a CAGR of 15.8% over FY22-24.

  • Power stocks like Adani Green Energy, Power Grid Corp of India, NTPC, Adani Power and Tata Power Co are falling in trade. All constituents of the broader BSE Power are also trading in the red.

  • Indian rupee depreciates 8 paise to 79.82 against the US dollar in early trade today, ahead of the US Federal Reserve's FOMC's decision on interest rates today.

  • ITI board to meet on September 28 to consider and approve allotment of shares to the Centre. It plans to use the funds as part of a revival package and for capex.

  • Reserve Bank of India removes Central Bank of India from the prompt corrective action framework after five years. The stock rose 12% in intra-day trade and touches a six-month high of Rs 23.4 after the announcement. It also shows up on a screener of stocks gaining more than 20% in the past month.

  • KPIT Technologies is rising as it is set to acquire four Technica group companies. It will be acquiring them for a fixed consideration of 80 million euros (Rs 635.2 crore), and a maximum variable payment of 30 million euros (Rs 238.2 crore). The four companies are Technica Engineering Germany, Technica Electronics Barcelona, Technica Engineering Spain and Technical Engineering USA.

  • KEC International secures new orders worth Rs 1,123 crore across various business segments like railways, transmission & distribution, infrastructure, and cables. The company also shows up on a screener which lists companies with zero promoter pledges.

  • ACC and Ambuja Cements' promoter entities--Endeavour Trade and Xcent Trade and Investments--pledge their entire stake in the two companies to fund Adani Group's acquisition of Holcim's stake. The pledged shares will be used to raise debt from Deutsche Bank to fund Adani Group's acquisition of ACC and Ambuja Cements.

  • NBCC is rising as its total business secured for the month of August jumps 7.4X YoY to Rs 274.8 crore. The company also shows up on a screener with annual profits improving for the past two years.

  • Jefferies maintains its ‘Buy’ rating on State Bank of India and raises the target price to Rs 700 from Rs 630. The brokerage expects better credit growth for the bank.

  • Hero MotoCorp and Hindustan Petroleum Corp ink a pact to set up charging infrastructure for two-wheeled electric vehicles across the country.

  • Mahindra & Mahindra, promoter of Swaraj Engines (SEL) plans to buy Kirloskar Industries’ 17% (21 lakh shares) stake in SEL. Kirloskar Industries is also a promoter of SEL and the transaction will be carried out through inter-se transfer amongst promoters through an off-market transaction. The deal is estimated to be worth Rs 296 crore.

Riding High:

Largecap and midcap gainers today include Patanjali Foods Ltd. (1,466.50, 4.94%), Britannia Industries Ltd. (3,765.65, 3.15%) and YES Bank Ltd. (16.90, 3.05%).

Downers:

Largecap and midcap losers today include ACC Ltd. (2,531.20, -7.13%), Ambuja Cements Ltd. (541.35, -5.75%) and Shree Cements Ltd. (22,023.95, -5.24%).

Movers and Shakers

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

Top high volume gainers on BSE included Central Bank of India (21.70, 6.63%), Sterling and Wilson Renewable Energy Ltd. (320.50, 5.74%) and RHI Magnesita India Ltd. (688.95, 5.45%).

Top high volume losers on BSE were Gland Pharma Ltd. (2,166.05, -2.95%) and Mahanagar Gas Ltd. (856.90, -1.40%).

Aarti Drugs Ltd. (474.65, 3.11%) was trading at 7.9 times of weekly average. Adani Wilmar Ltd. (781.80, 1.58%) and Triveni Turbine Ltd. (231.40, 1.07%) were trading with volumes 5.1 and 4.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks made 52-week highs, while 4 stocks hit their 52-week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (2,623.40, -2.09%), Bharti Airtel Ltd. (780.20, -1.51%) and Cipla Ltd. (1,070.40, -2.00%).

Stocks making new 52 weeks lows included - Sanofi India Ltd. (5,977.50, -0.46%) and Indian Energy Exchange Ltd. (151.10, -1.40%).

19 stocks climbed above their 200 day SMA including Krishna Institute of Medical Sciences Ltd. (1,351.90, 5.21%) and eClerx Services Ltd. (1,523.10, 5.12%). 18 stocks slipped below their 200 SMA including Shree Cements Ltd. (22,023.95, -5.24%) and Birla Corporation Ltd. (1,075.50, -3.96%).

 
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