Trendlyne Analysis

Nifty 50 closed in the green but fell from its day’s high towards the final hour of the trading session. European shares traded higher as investors awaited minutes of the European Central Bank’s September monetary policy meeting. India's services Purchasing Managers' Index or PMI missed estimates and fell to 54.3 in September from 57.2 in August.

Major Asian indices closed higher despite the US indices closing marginally lower on Wednesday. US stocks settled lower after strong US labour demand suggested the Federal Reserve could keep the federal funds rate higher for a more extended period. Previously, on Monday and Tuesday, US indices posted their best two-day rally since 2020. Brent crude oil futures traded lower after rising over 9% in the last three days. Crude oil prices rose over 2% on Wednesday after OPEC+ agreed to cut oil production by 2 million barrels per day to arrest a fall in crude oil prices.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media closed sharply higher than Tuesday’s levels. Nifty IT closed in the green, following the NASDAQ 100 futures, which are trading higher.

Nifty 50 closed at 17,316.30 (42, 0.2%), BSE Sensex closed at 58,222.10 (156.6, 0.3%) while the broader Nifty 500 closed at 15,042.90 (77.1, 0.5%)

Market breadth is overwhelmingly positive. Of the 1,938 stocks traded today, 1,340 were on the uptick, and 549 were down.

• Stocks like Cochin Shipyard, Mazagon Dock Shipbuilders, Rites, and Zydus Lifesciences are in the overbought zone, according to the relative strength index or RSI.

• HFCL is rising as it enters into an agreement with Qualcomm Technologies to design and develop 5G outdoor small cell products. The company believes its investment in 5G outdoor small cell products will lead to a faster rollout of 5G networks, improve user experience, and efficient utilisation of the 5G spectrum.

• Sugar stocks Shree Renuka Sugars, EID Parry (India), Balrampur Chini Mills, Dalmia Bharat Sugar and Industries, among others rise by more than 3% in trade today. The sugar industry also trades in the green.

• Electronics Mart’s Rs 500-crore IPO gets bids for 7.6X of the available 6.25 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 7.8X of the available 3.1 crore shares on offer.

• Sharekhan maintains its 'Buy' rating on APL Apollo Tubes with a target price of Rs 1,275 per share. This indicates an upside of 16.2%. The brokerage believes that the first mover advantage in structural steel tube space and a potential rise in margins will aid revenue growth. It estimates the company's net profit to grow at a CAGR of 33% over FY22-25.

• Apollo Hospitals Enterprise acquires a 60% stake in Kerala First Health Services through primary and secondary equity investment for a combined consideration of Rs 26.40 crore. Kerala First Health Services offers ayurveda medical care services under the brand AyurVAID Hospitals.

• Macrotech Developers’ Q2FY23 bookings rise 57% YoY to Rs 3,148 crore and collections grow by 24% YoY on the back of robust demand. During the quarter, the company took on four new projects with a saleable area of 2.2 million square feet and a gross development value of Rs 3,100 crore. The stock makes it the screener which lists companies with an improving book value per share over the past two years.

• SpiceJet rises on reports that the airline may get additional funds worth Rs 1,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) in order to manage rising fuel costs and pay pending dues. The Centre raises the ELCGS limit for the aviation industry to Rs 1,500 crore from Rs 400 crore.

• OPEC+ to cut oil production amid rising interest rates. The output will be cut by 2 million barrels per day.

  OPEC+ agreed steep oil production cuts, curbing supply in an already tight market and causing one of its biggest clashes with the West as the U.S. administration called the surprise decision shortsighted https://t.co/BUGCy2b59x pic.twitter.com/Aqz24UPGQ2

  — Reuters (@Reuters) October 6, 2022

• Glenmark Pharmaceuticals rises after announcing the launch of lobeglitazone, an oral drug used for treating type 2 diabetes in adults. The company is the first to launch this drug in India. Oral anti-diabetic drugs in India had annual sales of Rs 11,725 crore for the 12 months ended August 2022.

• Metal stocks like JSW Steel, Vedanta, Hindalco Industries, Jindal Steel & Power and Steel Authority of India (SAIL) are up by more than 2.5%. All constituents of the BSE Metal index are also trading in the green.

• ICICI Securities continues to remain positive on the future growth prospects of Phoenix Mills as it retains its ‘Buy’ rating on the company with a target price of Rs 1,638. This implies an upside of 19%. The brokerage believes the company is well-placed to benefit from the revival in consumption across malls in India. This is due to its strong brand recall, market share leadership, robust pipeline of projects, and healthy balance sheet. It expects the company’s revenue to grow at a CAGR of 34.6% over FY22-25.

• India’s September Services PMI falls to 54.3 compared to 57.2 in August as growth in the services industry falls to a six-month low amid inflationary pressures.

  #India September #Services #PMI at 54.3 vs 57.2 (MoM)
  
  India September #Composite PMI at 55.1 vs 58.2 (MoM) pic.twitter.com/zoA80bqoqd

  — CNBC-TV18 (@CNBCTV18Live) October 6, 2022

• Larsen & Toubro's arm L&T Construction wins an order worth Rs 1,000-2,500 crore from an automobile company to construct a manufacturing facility in Haryana. The company also wins an order to construct a police reserve campus in Guwahati from the government of Assam.

• JSW Energy is rising as its arm inks a pact with the state government of Maharashtra for a 960-MW hydropower plant in Raigarh.

• JP Morgan upgrades its rating on Persistent Systems to ‘Overweight’ from ‘Neutral’ and raises the target price to Rs 4,100 from Rs 3,900. The brokerage says that having a defensive portfolio (isolation from reaction to broad market movements) and maximum revenue coming in US dollar is a sign of strength.

  #BrokerageRadar | @jpmorgan on @Persistentsys: Upgrade to Overweight from Neutral; Co has a relatively defensive portfolio with exposures to software tech #StockMarket #StocksToWatch pic.twitter.com/BdOHDAjBDH

  — ET NOW (@ETNOWlive) October 6, 2022

• Media stocks Zee Entertainment Enterprises, PVR, Inox Leisure, among others are rising in trade. The broader Nifty Media index rises above 3%.

• Happiest Minds Technologies rises after the board approves fund raising of Rs 1,400 crore via equity or debt bonds. The company shows up on a screener which lists stocks with strong cash-generating ability from core business.

• Mahindra Lifespace Developers establishes a joint venture with Actis to develop industrial and logistics real estate facilities across India. The total combined investment in the joint venture over the initial years is estimated to be Rs 2,200 crore.

• Indian Energy Exchange’s total production volumes fall 8% YoY to 8,160 million units. Supply issues continue because of the high prices of e-auction of coal and gas. However, according to National Load Dispatch Center’s data, energy consumption is up 11% YoY to 127 billion units.

• Bajaj Finance’s Q2FY23 assets under management rise 30.8% YoY to Rs 2.1 lakh crore as new loans disbursed go up by 7.9% to 68 lakhs. The NBFC’s deposit book also grows 37% YoY in Q2. The company shows up on a screener of stocks with improving cash flow and good durability.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (330.65, 12.75%), Bharat Forge Ltd. (763.90, 8.05%) and Persistent Systems Ltd. (3,552.75, 7.69%).

Downers:

Largecap and midcap losers today include Godrej Consumer Products Ltd. (853.65, -4.79%), Gland Pharma Ltd. (2,074.80, -2.68%) and Lupin Ltd. (723.20, -2.57%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included JSW Energy Ltd. (330.65, 12.75%), HEG Ltd. (1,186.15, 10.98%) and Sterlite Technologies Ltd. (180.70, 8.95%).

Top high volume losers on BSE were Godrej Consumer Products Ltd. (853.65, -4.79%), Sheela Foam Ltd. (2,736.20, -3.13%) and Galaxy Surfactants Ltd. (2,990.45, -0.48%).

Praj Industries Ltd. (443.65, 7.01%) was trading at 10.2 times of weekly average. Mishra Dhatu Nigam Ltd. (229.70, 7.26%) and Graphite India Ltd. (382.10, 5.29%) were trading with volumes 10.0 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Cipla Ltd. (1,134.45, -0.89%), EID Parry (India) Ltd. (604.60, 2.54%) and IDFC First Bank Ltd. (54.30, 2.07%).

33 stocks climbed above their 200 day SMA including JSW Energy Ltd. (330.65, 12.75%) and Bharat Forge Ltd. (763.90, 8.05%). 6 stocks slipped below their 200 SMA including Lupin Ltd. (723.20, -2.57%) and NLC India Ltd. (69.15, -1.71%).