Trendlyne Analysis

Nifty 50 lost over 85 points and closed below the 17,650 mark, on a volatile day of trade. European stocks traded lower than Wednesday's close, taking cues from the global markets. Major Asian indices closed in the red, tracking the US indices, which closed lower on Wednesday. US stocks fell as the Federal Open Market Committee (FOMC) raised the key interest rate by 75 bps to combat multi-decade high inflation. Speaking after the monetary policy decision, US Fed Chairman Jerome Powell said that more aggressive measures were needed to curb inflation. In reaction, the tech-heavy NASDAQ 100 index fell 1.8% while the Dow Jones closed 1.7% lower. Brent crude oil futures hovered around $90 per bbl as high interest rates and a slowing economy hurt crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Bank and Nifty Energy trade lower than Wednesday’s close. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed lower on Wednesday.

Nifty 50 closed at 17,635.95 (-82.4, -0.5%) , BSE Sensex closed at 59,119.72 (-337.1, -0.6%) while the broader Nifty 500 closed at 15,344.10 (-17.2, -0.1%)

Market breadth is balanced. Of the 1,928 stocks traded today, 938 were on the uptick, and 938 were down.

• TVS Motor sees a long build-up in its September 29 future series as its open interest rises 7.1% with put to call ratio of 0.77.

• IDBI Capital upgrades its rating on Trent to ‘Hold’ from ‘Sell’ with a target price of Rs 1,446. The brokerage is no longer pessimistic about the company’s prospects as its average bill value improves compared to its peers along with Zudio’s rapidly increasing store count. The brokerage expects the firm’s revenue to grow at a CAGR of 41.1% over FY22-24.

• Fortis Healthcare is falling as the Supreme Court orders the continuation of a stay on IHH Healthcare's open offer for the company, according to reports. The court ordered a forensic audit of the share sale in Fortis Healthcare in 2018 and refuses to allow the open offer from Malaysia’s IHH Healthcare to proceed.

• Varun Beverages and Page Industries hit their all-time highs of Rs 1,173.2 and Rs 52,736, respectively. Both stocks rise for three consecutive sessions.

• ICICI Securities maintains ‘Buy’ on Patanjali Foods with a target price of Rs 1,750. It expects the company to scale up its edible oil business, and expects operating margins to improve from consolidation of food business, backward integration in the palm plantation business and entry into new foods categories and high-margin segments like nutraceuticals.

• Reliance Industries’ arm Reliance Retail plans to launch a new clothing and accessories brand store chain, according to reports.

  #ETReports | Reliance Retail is planning to launch a new clothing and accessories brand store chain to compete directly with Zara and H&M in India #RelianceRetail @ZARA @hmindia #StocksToWatch pic.twitter.com/heTxVYhEQd

  — ET NOW (@ETNOWlive) September 22, 2022

• Infosys falls and touches a 52-week low of Rs 1,360 per share. The stock fell almost 14%, the most in the Nifty IT index over the last 30 days.

• GMM Pfaudler is rising as it receives approval from the Government of the UK to acquire the balance 46% stake in GMM International. The company shows up on a screener which lists stocks with annual net profit increasing over the last two years.

• Suzlon Energy rises after it announces a board meeting on Sunday to consider and approve the terms and conditions of the rights issue. It will also determine the price of the equity shares in the meeting.

• Kirloskar Oil Engines is rising as the company announces the acquisition of its remaining stake in La-Gajjar Machineries (LGM). The company acquired a 76% stake in LGM in 2017. LGM is now a wholly owned subsidiary of Kirloskar Oil Engines

• Hardware Technology & Equipment, Realty, and Telecommunications Equipment sectors fall by more than 4% over the past week.

• ICICI Securities is optimistic about the future growth prospects of Krishna Institute of Medical Sciences as its initiates coverage on the stock with a ‘Buy’ rating. It has set a target price of Rs 1,565, implying an upside of 15.7%. The brokerage is positive on the company’s prospects given its strong brand recall, expansion into newer markers, strategic capital allocation and healthy margins. It expects the firm’s revenue to grow at a CAGR of 26.7% over FY22-24.

• Bank of Baroda, SpiceJet, and Fortis Healthcare trade below their third support or S3 level as markets trade lower.

• Aptus Value Housing Finance rises in trade after Citi Group initiates coverage on the stock with a ‘Buy’ rating and a target price of Rs 425. This implies an upside of 43%. According to the brokerage, the company’s pricing strategy and cost structure helped to deliver a ROA of 7.4% during FY22. It also expects 29% annual growth in assets under management, over FY23-26.

• Aptus Value Housing Finance rallied 8% to a high of Rs 321.35 on the BSE in intraday trade, even as the broader markets remained under pressure. #StockMarket #MarketsWithBS #StocksInFocushttps://t.co/p1Vqc7m4dL

  — Business Standard (@bsindia) September 22, 2022

• ICICI Securities is optimistic about the future growth prospects of Krishna Institute of Medical Sciences as its initiates coverage on the stock with a ‘Buy’ rating. It has set a target price of Rs 1,565, implying an upside of 15.7%. The brokerage is positive on the company’s prospects given its strong brand recall, expansion into newer markers, strategic capital allocation and healthy margins. It expects the firm’s revenue to grow at a CAGR of 26.7% over FY22-24.

• SpiceJet is falling as the Directorate General of Civil Aviation (DGCA) extends the airline's suspension date on operating at 50% capacity to October 29. The airline also sent 80 pilots on leave without pay. In spite of this, it has announced a 20% hike in salary for the pilots, according to reports

• Energy stocks like Power Grid Corp of India, GAIL (India), Bharat Petroleum Corp, and Oil and Natural Gas Corp are falling in trade. All the constituents of the broader Nifty Energy index are also trading in the red.

• The Indian rupee trades at a record low of 80.5, after opening at 80.28 against the US dollar today. This comes after the US Federal Reserve raises its interest rate by 75 bps during the FOMC held on Wednesday.

  #Rupee Check | Rupee opens at record low of 80.28/$ vs Wednesday’s close of 79.98/$#RupeeVsDollar #USDINR pic.twitter.com/3eYKTjzt7L

  — CNBC-TV18 (@CNBCTV18Live) September 22, 2022

• Triveni Engineering and Industries, promoter of Triveni Turbines sells its entire stake of 21.8% (7.06 crore shares) worth Rs 1,608.5 crore in a bulk deal. In another deal, Rati Sawhney, promoter of Triveni Turbines buys a 10% stake (3.2 crore shares) for Rs 740.3 crore. Some shares of Triveni Turbines were also picked up by the Government of Singapore, Abu Dhabi Investment, Nomura Trust, and Plutus Wealth, among others.

• Ashoka Buildcon is rising as it bags an order worth Rs 258.1 crore from South Western Railway for the construction of a new broad-gauge railway line. The project will be completed within 24 months. The company also shows up on the screener which lists stocks with improving cash flow and high durability.

• Centre approves Rs 19,500 crore production-linked incentive (PLI) scheme in the field of solar PV modules. This scheme is expected to help in the manufacturing of highly efficient solar PV modules in India and reduce imports of renewable energy.

• Future Enterprises defaults on payment of interest on non-convertible debentures amounting to Rs 15.7 crore, according to reports. The gross principal amount defaulted on till now, is around Rs 327 crore. The company shows up on screeners with a high promoter pledge and declining book value for the last two years.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (1,170.50, 4.10%), Page Industries Ltd. (53,012.55, 3.66%) and 3M India Ltd. (23,828.25, 3.66%).

Downers:

Largecap and midcap losers today include Sona BLW Precision Forgings Ltd. (479.15, -3.77%), Power Grid Corporation of India Ltd. (220.10, -3.06%) and Max Healthcare Institute Ltd. (426.80, -2.46%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Suzlon Energy Ltd. (9.60, 12.28%), KPIT Technologies Ltd. (664.95, 10.92%) and Borosil Renewables Ltd. (609.70, 5.07%).

Top high volume losers on BSE were Fortis Healthcare Ltd. (265.55, -14.71%), Sona BLW Precision Forgings Ltd. (479.15, -3.77%) and Spicejet Ltd. (40.35, -3.58%).

Anupam Rasayan India Ltd. (783.55, 4.00%) was trading at 17.5 times of weekly average. Aditya Birla Sun Life AMC Ltd. (474.85, 1.02%) and Suven Pharmaceuticals Ltd. (449.00, -2.43%) were trading with volumes 11.3 and 3.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks made 52 week highs, while 11 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - ITC Ltd. (345.05, 1.20%), Lakshmi Machine Works Ltd. (13,209.25, 2.91%) and Maruti Suzuki India Ltd. (9,401.85, 1.66%).

Stocks making new 52 weeks lows included - Biocon Ltd. (289.50, 0.05%) and Finolex Industries Ltd. (144.75, -2.33%).

15 stocks climbed above their 200 day SMA including Suzlon Energy Ltd. (9.60, 12.28%) and Computer Age Management Services Ltd. (2,567.90, 5.21%). 17 stocks slipped below their 200 SMA including Fortis Healthcare Ltd. (265.55, -14.71%) and Redington Ltd. (145.20, -2.12%).