Trendlyne Analysis

Nifty 50 lost over 145 points and closed in the red, with the volatility index, India VIX, rising over 22%. Indian indices closed lower for a sixth straight session. European stocks followed the global trend and traded lower than Tuesday’s close. Major Asian indices closed in the red, following the US indices which mostly closed lower on Tuesday. US stocks gave up their gains towards the end of the trading session and closed in the red on a volatile day of trade. The Dow Jones fell 0.43% while the S&P 500 closed 0.2% lower. However, the tech-heavy NASDAQ 100 managed to close 0.2% higher. Brent crude oil futures traded higher after rising over 2% on Tuesday as supply concerns emerged due to OPEC production cuts and a hurricane in the Gulf of Mexico.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Bank and Nifty Energy closed lower than Tuesday’s levels. Nifty IT closed flat, despite the NASDAQ 100 closing higher on Tuesday.

Nifty 50 closed at 16,826.15 (-181.3, -1.1%), BSE Sensex closed at 56,598.28 (-509.2, -0.9%) while the broader Nifty 500 closed at 14,594.15 (-133.2, -0.9%)

Market breadth is in the red. Of the 1,922 stocks traded today, 640 were in the positive territory and 1,240 were negative.

• Medplus Health Services and Can Fin Homes are trading in the oversold zone, according to the Money Flow Index or MFI.

• Asian Paints is rising as analysts say a drop in raw material prices and better product mix will drive EBITDA margin growth, according to reports. The stock also features in a screener that has negative to positive growth in sales and profit with strong price momentum.

• Coromandel International, Chambal Fertilisers, and Indian Potash sign a memorandum of understanding with Canpotex, Canada. According to the MoU, Canpotex will supply up to 15 lakh metric tonne of potash annually, for the next three years to the fertilizer companies.

  Union Minister of Chemicals and Fertilizers, Mansukh Mandaviya said the MoU will reduce both supply and price volatility & ensure a stable long-term supple of potash fertilizer to India.
  
  (@_swatiluthra reports) https://t.co/9Q42jtgP1k

  — Mint (@livemint) September 28, 2022

• Punjab National Bank, Mangalore Refinery and Petrochemicals, and CG Power and Industrial Solutions trade below their second support or S2 level as markets trade lower.

• Vodafone Idea falls in trade after Indus Towers asks the company to clear its dues, failing which access to the tower network would be disrupted, according to reports. Vodafone Idea’s dues to Indus Towers stand at Rs 7,000 crore.

  #VodafoneIdea shares fell nearly 2% after Indus Towers asked the loss-making telco to clear its dues or run the risk of losing access to its towers from Novemberhttps://t.co/3WM5f0uV9g

  — ETMarkets (@ETMarkets) September 28, 2022

• Sona BLW Precision Forgings and Indian Energy Exchange hit their 52-week lows of Rs 458.1 and Rs 65.5, respectively. Indian Energy Exchange falls for two sessions, while Sona BLW Precision Forgings trades lower for four sessions.

• Metal stocks like JSW Steel, Hindalco Industries, National Aluminium, and Coal India are falling in trade. The broader sectoral index BSE Metal is also trading in red.

• ICICI Securities maintains its ‘Add’ rating on AIA Engineering with a target price of Rs 2,720, implying an upside of 6.7%. The brokerage believes the company is well-placed to benefit from the mining sector’s capacity expansion due to the upswing in the commodity cycle. It believes the company’s ability to pass on increases in input costs and improve product basket to improve profitability. It expects the company’s revenue to grow at a CAGR of 14.7% over FY22-24.

• City gas distributor stocks like Adani Total Gas, Indraprastha Gas, and Mahanagar Gas rise in a weak market. This is after the Centre takes more time to submit a report on the pricing strategy of gas to meet the expectations of both consumers and producers.

• Motherson Sumi’s board of directors will meet on Friday to take up a proposal to issue bonus shares.

• Supriya Lifescience is falling as its CEO and key managerial personnel (KMP) resigns from his post citing personal reasons. The company’s board approves the appointment of Rajeev Kumar Jain as the new CEO and KMP, effective from October 3.

• Oil & Gas, Coal, and Fertilizers sectors fall more than 6.5% in trade over the past month.

• Larsen & Toubro receives an engineering, procurement and construction order worth Rs 1,000-2,500 crore from the state government of Assam to construct a medical college and hospital at Golaghat.

• FMCG stocks like Hindustan Unilever, Nestle India, Britannia Industries, Godrej Consumer Products and Marico are rising in trade, as palm oil price falls 5%.

  #CNBCTV18Market | #FMCG stocks in focus as palm oil slips 5% on an intra-day basis and 25% in last one month to trade at the lowest level since January 2021#PalmOil pic.twitter.com/HtnZLNzk7J

  — CNBC-TV18 (@CNBCTV18Live) September 28, 2022

• Brent crude is trading below its $100-mark and global cues suggest that the prices are likely to go up on the possibility of a shortage in the supply of oil, according to oilprice.com. This is because of a fall in OPEC’s production of oil to 3.5% of global demand (3.58 million barrels per day) and news that Russia’s exports may fall by 2.4 million barrels per day. Also, with US’ strategic petroleum reserve going below commercial storage will have a direct effect on Europe’s supply of energy. With China's economy re-opening the demand is likely to increase causing a supply shock in the global market.

• Sharekhan remains optimistic about Vinati Organics’ future growth prospects as it keeps its ‘Buy’ rating on the company with a target price of Rs 2,500. This implies an upside of 22.2%. The brokerage believes the firm’s dominant market share in niche chemical segments, robust balance sheet, and capacity expansion plans will drive profit growth in the coming years. It expects the company’s profit to grow at a CAGR of 31.9% over FY22-24.

• Power Grid’s board approves an investment of Rs 327.71 crore for a transmission project. The project is to connect Reliance Industries’ Jamnagar Oil Refinery with Jamkhambaliya ISTS PS.

• Indian rupee touches another record low of 81.9 against the US dollar, in early trade today.

  Amid a spike in US bond yields, the #rupee on Wednesday hit a fresh record low of 81.9 against the US dollar. The domestic currency has already depreciated around 9% against the greenback so far in the calendar year 2022.https://t.co/XunOeZiexy

  — Economic Times (@EconomicTimes) September 28, 2022

• Bharti Airtel's promoter Bharti Telecom acquires an additional 19 crore shares (3.2% stake) of the telecom company from the affiliates of Singtel. The promoter now holds a 38.62% stake in the company.

• V-Sciences Investments sells 0.47% stake (9 lakh shares) in Godrej Agrovet for Rs 45 crore in a bulk deal. The shares were picked up by Unifi Capital via block deals.

• Torrent Pharma will buy a 100% stake in Curatio Healthcare for Rs 2,000 crore, which includes an upfront payment of Rs 115 crore on the date of signing. This acquisition will help the company expand its presence in the cosmetic dermatology segment in the Indian market.

Riding High:

Largecap and midcap gainers today include Muthoot Finance Ltd. (1,048.65, 3.62%), The New India Assurance Company Ltd. (85.50, 3.20%) and Asian Paints Ltd. (3,570.65, 2.88%).

Downers:

Largecap and midcap losers today include Punjab National Bank (34.85, -5.04%), Adani Green Energy Ltd. (2,051.05, -4.44%) and Au Small Finance Bank Ltd. (582.25, -4.01%).

Volume Shockers

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

Top high volume gainers on BSE included ITI Ltd. (112.15, 8.41%) and Eris Lifesciences Ltd. (698.60, 1.36%).

Top high volume losers on BSE were Torrent Pharmaceuticals Ltd. (1,494.30, -2.58%), CCL Products India Ltd. (500.45, -2.13%) and Star Health and Allied Insurance Company Ltd. (712.05, -0.91%).

Symphony Ltd. (835.90, -0.77%) was trading at 8.5 times of weekly average. Hitachi Energy India Ltd. (3,467.50, -0.47%) was trading with volume 4.8 times weekly average on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks overperformed with 52-week highs, while 17 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Cipla Ltd. (1,097.15, -0.14%) and Gujarat Fluorochemicals Ltd. (3,878.70, 6.69%).

Stocks making new 52 weeks lows included - Dhanuka Agritech Ltd. (637.25, -2.46%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,385.55, -1.43%).

13 stocks climbed above their 200 day SMA including ITI Ltd. (112.15, 8.41%) and Nesco Ltd. (574.15, 1.88%). 17 stocks slipped below their 200 SMA including Punjab National Bank (34.85, -5.04%) and NOCIL Ltd. (240.05, -3.48%).