Trendlyne Analysis

Nifty 50 lost over 300 points and closed in the red on a volatile day of trade. The benchmark index managed to close just above the 17,000 mark with the Indian volatility index, India VIX, rising above 21.5%. European indices traded mixed with the Italian index trading in the green as right-wing leader Giorgia Meloni secured a majority in Italy's parliamentary elections.

Most Asian indices closed in the red, tracking the US indices which closed lower on Friday. The Dow Jones lost 4% last week and closed at its lowest level since November 2020. The tech-heavy index, NASDAQ 100, also extended its losses by falling over 4.6% last week. Investors continue to be wary of the slowing economic growth amid central banks raising interest rates to combat record-high inflation levels. Brent crude oil futures traded lower and hovered around $85 per bbl, its lowest level since January.

Nifty Smallcap 100 and Nifty Midcap 100 lost over 3% and closed deep in the red, following the benchmark index. Nifty Metal and Nifty Realty fell over 4% and closed sharply lower than Friday’s close. Nifty IT bucked the market trend and closed in the green, despite the NASDAQ 100 closing lower on Friday.

Nifty 50 closed at 17,016.30 (-311.1, -1.8%), BSE Sensex closed at 57,145.22 (-953.7, -1.6%) while the broader Nifty 500 closed at 14,725.70 (-332.0, -2.2%)

Market breadth is highly negative. Of the 1,957 stocks traded today, 164 were on the uptrend, and 1,772 went down.

• PI Industries sees a short build-up in its September 29 future series as its open interest rises 32.2% with put to call ratio of 0.28.

• Gland Pharma and Aurobindo Pharma hit their 52-week lows of Rs 2,055.5 and Rs 497.8, respectively. Gland Pharma falls for two sessions, while Aurobindo Pharma trades lower for four sessions.

• Revenue Secretary Tarun Bajaj says the Centre will reassess global crude oil prices around October 1 and will eliminate windfall tax on crude and petroleum exports, if required. The decision regarding windfall tax will be taken after reviewing incoming data for global crude oil prices.

  #NewsAlert | "Will assess global crude prices around October 1," says @SecyDea @Meghnamittal23 #WindfallTax #CrudeOil pic.twitter.com/Q9RgiWgvPr

  — ET NOW (@ETNOWlive) September 26, 2022

• Special Consumer Services, Other Non-Ferrous Metals, and Copper industries fall more than 5% in trade today.

• Hindustan Aeronautics sets up an integrated cryogenic engine manufacturing facility in Bengaluru worth Rs 208 crore. This facility will be used to manufacture and supply rocket engines to the Indian Space Research Organisation.

• PVR plans to invest Rs 350 crore in FY23 to open 100 new screens, says CEO Gautam Dutta. The investment will be funded by cash balances from internal accruals and debt, according to reports. The company also expects its merger with Inox Leisure to be completed by February 2023.

• Reliance Industries, ITC, and Life Insurance Corp of India trade below their second support or S2 level as markets trade lower.

• Tata stocks like Tata Chemicals, Tata Motors, Tata Teleservices among others are falling as Tata Sons plans to reduce the number of listed companies to 15 from 29, according to reports. The report comes after Tata Steel's board approved the merger of seven subsidiaries with itself on Friday.

• Metal stocks like Hindustan Copper, Hindalco Industries, Jindal Steel & Power, National Aluminium Co, and Vedanta are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

• Jefferies maintains its ‘Hold’ rating on Tata Steel, with a target price of Rs 95. The brokerage feels that steel prices are sticky. It also says there is a risk in pricing due to Indian steel prices being 6-11% above import parity.

• #BrokerageRadar | @Jefferies on Steel: Steel price strain; still early to turn constructive #StockMarket #StocksToWatch #SteelPrices pic.twitter.com/4xxHMjkjhe

  — ET NOW (@ETNOWlive) September 26, 2022

• ICICI Securities continues to be positive about Gujarat Fluorochemicals’ growth prospects as it retains its ‘Buy’ rating on the company and increases its target price to Rs 4,270 from Rs 3,865. This implies an upside of 15.5%. The brokerage believes the company’s plans of expanding its production capacity and foray into battery chemicals manufacturing will drive revenue growth in the coming years. It expects the company’s revenue to grow at a CAGR of 27.7% over FY22-24.

• Promoter Mayank Singhal sells a 1.3% stake (20 lakh shares) in PI Industries for Rs 630 crore in a bulk deal on Friday. The shares were picked up by Morgan Stanley Asia Singapore, Mirae Asset Mutual, BNP Paribas, and ICICI Prudential Life Insurance, among others.

• Realty stocks like Brigade Enterprises, Oberoi Realty, Godrej Properties among others are falling in trade. All constituents of the broader Nifty Realty index are trading in the red.

• Coal India will sign a memorandum of understanding with Bharat Heavy Electricals, Indian Oil Corp, and GAIL (India) to set up four surface coal gasification projects, according to reports.

• Suzlon Energy’s board approves the raising of Rs 1,200 crore through a rights issue on Sunday. The company will issue 240 crore equity shares at Rs 5 per share price. The company shows up on a screener with improving book value for the last two years.

• Britannia Industries' board appoints Rajneet Kohli as Executive Director and Chief Executive Officer. The board elevates Varun Berry to Executive Vice-Chairman, he will also continue to be Managing Director at the company.

• Indian rupee hits a record low of 81.5 in early trade today, against the US dollar.

  #Rupee slips further, opens at a record low of 81.54 against US dollar#Dollar #Currency pic.twitter.com/spY3nFOsA7

  — CNBC-TV18 (@CNBCTV18Live) September 26, 2022

• Harsha Engineers’ shares list at a 36% premium to the issue price of Rs 330, on its debut on the bourses. The Rs 755-crore IPO was subscribed for 74.7 times of the total shares on offer.

• Nestle S.A's CEO Mark Schneider says the company plans to invest Rs 5,000 crore in India over the next three and a half years, according to reports. The investment will involve setting up new plants, acquisitions and expanding the existing product portfolio.

• Unichem Laboratories sells a 19.97% stake in Optimus Drugs to Sekhmet Pharmaventures for Rs 270.9 crore. This is the first part of the payment received by Unichem Labs for sale. The company shows up on a screener of stocks with consistent returns over the past five years.

Riding High:

Largecap and midcap gainers today include Emami Ltd. (521.85, 5.29%), Dr. Lal Pathlabs Ltd. (2,567.20, 2.08%) and Ipca Laboratories Ltd. (891.85, 2.05%).

Downers:

Largecap and midcap losers today include JSW Energy Ltd. (296.15, -7.19%), Jindal Steel & Power Ltd. (397.30, -6.69%) and Au Small Finance Bank Ltd. (597.15, -6.38%).

Volume Shockers

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

Top high volume gainers on BSE included J B Chemicals & Pharmaceuticals Ltd. (1,916.20, 3.49%), Westlife Development Ltd. (694.40, 2.76%) and Ipca Laboratories Ltd. (891.85, 2.05%).

Top high volume losers on BSE were Thermax Ltd. (2,205.85, -7.98%), Great Eastern Shipping Company Ltd. (490.45, -6.37%) and Bandhan Bank Ltd. (261.55, -5.97%).

Mahindra CIE Automotive Ltd. (261.80, -1.00%) was trading at 7.8 times of weekly average. Power Grid Corporation of India Ltd. (200.85, -0.84%) and EPL Ltd. (165.35, 1.10%) were trading with volumes 5.2 and 5.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit its 52-week highs, while 30 stocks hit their 52-week lows.

Stock touching their year highs included - Westlife Development Ltd. (694.40, 2.76%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (595.60, -2.26%) and Aurobindo Pharma Ltd. (502.15, -2.88%).

1 stock climbed above their 200 day SMA including Alkem Laboratories Ltd. (3,290.60, 1.01%). 76 stocks slipped below their 200 SMA including RBL Bank Ltd. (112.55, -8.50%) and Varroc Engineering Ltd. (350.55, -7.62%).