Trendlyne Analysis

Nifty 50 recovered over 175 points from its day’s low but still closed in the red on a volatile day of trade. European indices followed the global trend and traded lower than Friday’s close. India's foreign exchange reserves fall to $532.66 billion, its lowest level since July 2020. India's forex reserves decrease by $4.85 billion for the week ending September 30 compared to the previous week. Indian rupee touches a new lifetime low of 82.64 against the US dollar in early trade today.

Major Asian indices closed in the red, in line with the US indices, which settled sharply lower on Friday. US stocks fell as strong September jobs report raised the possibility of the Federal Reserve continuing with its aggressive monetary policy tightening to combat high inflation. The tech-heavy NASDAQ 100 fell 3.9% while the Dow Jones closed 2.1% lower. Brent Crude oil futures traded lower after rising 3.7% on Friday. Crude oil prices hit a five-week high on Friday amid supply concerns as OPEC+ recommended the largest supply cut since 2020 last week.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Media closed lower than Friday’s levels. Nifty IT closed higher as investors looked ahead to heavyweight Tata Consultancy Services’ Q2FY23 results to be declared later today.

Nifty 50 closed at 17,252.45 (-62.2, -0.4%), BSE Sensex closed at 57,991.11 (-200.2, -0.3%) while the broader Nifty 500 closed at 14,961.25 (-75.5, -0.5%)

Market breadth is overwhelmingly negative. Of the 1,964 stocks traded today, 616 were on the uptrend, and 1,283 went down.

• Hero MotoCorp sees a short build-up in its October 27 future series as its open interest rises 22.5% with put to call ratio of 0.28.

• US introduces new measures to cut off China from various semiconductor chips made in the world with the help of US equipment. The US aims to slow down China’s technological and military advancements through these measures.

  China and USA Are Officially At Economic War
  Technology Restriction Overview
  New regulations will impact global trade by hundreds of billions of dollars annually.
  AI and HPC - Everything?
  Logic - 16nm or non-planar
  DRAM - 18nm
  NAND - 128 layer
  III-V, II-VIhttps://t.co/i3Fjkn3w41

  — Dylan Patel (@dylan522p) October 8, 2022

• ICICI Securities reiterates its 'Buy' rating on Macrotech Developers with a target price of Rs 1,348. This indicates an upside of 35.3%. The brokerage believes that the company's strong launch pipeline and sustenance in sales momentum will help revenue growth. It estimates the company's revenue to grow at a CAGR of 4.3% over FY22-24.

• Suzlon Energy appoints Vinod R Tanti as the Chairman and Managing Director of the company on Friday. The appointment is subject to the approval of the shareholders at the next general meeting.

• Mazagon Dock Shipbuilders and Cochin Shipyard hit their 52-week highs of Rs 680 and Rs 559.8, respectively. Both stocks rise for seven consecutive sessions.

• JSW Steel’s Q2FY23 combined crude steel production rises 12% to 5.68 million tonnes led by its Indian operations’ production volumes rising 36% YoY. However, its combined crude steel production falls 3% QoQ due to maintenance shutdowns, supply chain constraints, and subdued market conditions in the US.

• Axis Direct initiates coverage on IDFC First Bank with a ‘Buy’ rating and a target price of Rs 70, implying an upside of 29%. The brokerage expects the bank’s profitability to improve as it has one of the best CASA ratios among its peers, a well-diversified retail loan book, a pan-India geographical presence, and improving asset quality. The brokerage estimates the bank’s net profit to grow at a CAGR of 194.6% over FY22-25.

• Tracxn Technologies Rs 309.3-crore IPO gets bids for 23% of the available 2.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.2X of the available 38.6 lakh shares on offer. The issue is entirely an offer for sale.

• Nomura expects India’s FY24 GDP growth rate to fall to 5.2% due to a slowdown in the global economy. It expects India's GDP growth to be at 7% in FY23.

  #India's growth rate for FY24 is likely to witness a sharp moderation to 5.2 per cent as compared to FY23, said Japanese brokerage Nomura.https://t.co/BaHBJcpWIw

  — Economic Times (@EconomicTimes) October 10, 2022

• Consulting Services sector rises more than 6% in trade today despite a weak market. Integrated oil & gas, non-alcoholic beverages and surface transportation sectors fall more than 3.5% in trade today.

• Chetan Ahya of Morgan Stanley says that the depreciation of the rupee will continue. He expects a rate hike rate of 25 bps by the US Federal Reserve in January.

  #OnCNBCTV18 | With #oil prices below $100/bbl, #India should manage current account deficit of 3%. Expect #US #Fed to hike rates by 25 bps in January 2023 . #Exports outlook for India is not looking strong, says Chetan Ahya of Morgan Stanley pic.twitter.com/j5E72pCIj8

  — CNBC-TV18 (@CNBCTV18Live) October 10, 2022

• Easy Trip Planners is rising as its board approves a stock split in the ratio of 1:1, subject to shareholders' approval. This will be followed by a bonus issue of three bonus shares for one existing share. The company had done a bonus issue in the ratio of 1:1 in February.

• Adani Group is in advanced talks with Jaiprakash Power Ventures to acquire its cement unit for Rs 5,000 crore, according to reports. Jaiprakash Power Ventures intends to divest its cement grinding unit in Nigrie, Madhya Pradesh and other non-core assets. The company intends to use the proceeds of the sale of its cement unit to cut debt.

• Bandhan Bank falls as its CASA ratio dips 380 bps YoY to 40.8% in Q2FY23. However, loan advances rise 22% YoY and total deposits increase to 21% YoY. The bank’s collection efficiency also improves to 97% in Q2.

• IDBI Bank is rising as the Centre invites bids to sell a large part of its stake in the company. Currently, the Government of India holds a 45.4% stake and the Life Insurance Corp of India (LIC) holds a 49.2% stake in the company. The Centre plans to offload a 30.4% stake and LIC plans to pare its holding by 30.2%. The management control will also be transferred to IDBI Bank.

• Ramkrishna Forgings wins an export order worth Rs 131.5 crore from a rear and front Axle manufacturer for its heavy commercial vehicles application in North America. The order will be executed over a period of four years.

• Hindustan Unilever and Godrej Consumer Products are falling in trade as they cut soap prices due to raw material costs easing up. Fall in palm oil costs results in Hindustan Unilever cutting prices by 5-11% and Godrej Consumer Products by 13-15%.

• Indian rupee touches a new lifetime low of 82.64 against the US dollar in early trade today.

  #Rupee At Record Low | Rupee opens at a record low of 82.64 against US Dollar#RupeeVsDollar #USDINR pic.twitter.com/MFqRgzQR2I

  — CNBC-TV18 (@CNBCTV18Live) October 10, 2022

• One97 Communications (Paytm) is rising as its loan disbursals grow 224% YoY to 92 lakhs in Q2FY23, while the value of loans disbursed rises 482% YoY. Merchant payment volumes increase by 63% YoY. Offline payment volumes, subscription revenue and merchant loan distribution rise as devices deployed at merchant stores increase to 48 lakh in Q2.

• Traxcn Technologies’ raises Rs 139 from investors ahead of its IPO which opens for subscription today. The company allotted 1.7 crore equity shares at a price of Rs 80 per share to the anchor investors. The investors include ICICI Prudential, India Acorn Fund, Whiteoak Capital, Abakkus Emerging Opportunities Fund, BNP Paribas Arbitrage, Tara Emerging Asia Liquid Fund, and Motilal Oswal Fund.

• Tata Motors arm Jaguar Land Rover’s retail sales fall 4.9% YoY to 88,121 units in Q2FY23. However, retail sales were higher on a QoQ basis. The company says that although sales were up in Q2 production continues to be affected by semiconductor shortages.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (46.55, 9.02%), One97 Communications Ltd. (727.25, 2.80%) and Axis Bank Ltd. (776.85, 2.80%).

Downers:

Largecap and midcap losers today include Varun Beverages Ltd. (1,089.60, -4.02%), Tata Motors Ltd. (395.95, -3.93%) and Ashok Leyland Ltd. (154.35, -3.32%).

Movers and Shakers

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

Top high volume gainers on BSE included Brightcom Group Ltd. (41.45, 12.94%), IDBI Bank Ltd. (46.55, 9.02%) and Rail Vikas Nigam Ltd. (38.50, 6.94%).

Top high volume losers on BSE were Cholamandalam Financial Holdings Ltd. (636.90, -1.28%), Crisil Ltd. (3,133.70, -1.12%) and Westlife Development Ltd. (729.75, -0.18%).

Castrol India Ltd. (115.50, 3.22%) was trading at 6.8 times of weekly average. Star Health and Allied Insurance Company Ltd. (732.60, 1.88%) and Jyothy Labs Ltd. (200.80, 2.32%) were trading with volumes 6.7 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks made 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - EID Parry (India) Ltd. (605.80, -1.62%), IDFC Ltd. (72.55, 2.62%) and J B Chemicals & Pharmaceuticals Ltd. (1,970.15, -1.49%).

Stocks making new 52 weeks lows included - Motilal Oswal Financial Services Ltd. (702.65, -1.51%) and Gland Pharma Ltd. (2,051.10, -1.23%).

7 stocks climbed above their 200 day SMA including Equitas Holdings Ltd. (102.65, 2.14%) and DCM Shriram Ltd. (1,047.70, 1.54%). 24 stocks slipped below their 200 SMA including Hatsun Agro Products Ltd. (1,029.50, -3.15%) and Prestige Estates Projects Ltd. (454.50, -2.80%).