Trendlyne Analysis

Nifty 50 recovered over 160 points from the day’s low and closed in the green, above the 17,100 mark. European stocks traded mixed as UK’s GDP fell 0.3% MoM in August, missing estimates. The International Monetary Fund or IMF cut India’s economic growth estimate for FY23 to 6.8% from its July estimate of 7.4%. The IMF also warned of a worsening outlook for the global economy.

Most major Asian indices closed in the red, in line with the US indices, which closed mostly lower on Tuesday. The tech-heavy NASDAQ 100 index lost over 1.2% while the S&P 500 closed 0.7% lower on a volatile day of trade. Brent crude oil futures traded in the green after posting losses for two straight trading sessions amid demand concerns due to rising risks of a global recession.

Nifty Smallcap 100 and Nifty Next 50 closed in the green, following the benchmark index. Nifty Bank and Nifty FMCG closed higher than Tuesday’s levels. Nifty IT also closed higher, despite the tech-heavy NASDAQ 100 shedding over 1% on Tuesday.

Nifty 50 closed at 17,129.05 (145.5, 0.9%) , BSE Sensex closed at 57,625.91 (478.6, 0.8%) while the broader Nifty 500 closed at 14,834.55 (112.7, 0.8%)

Market breadth is in the red. Of the 1,935 stocks traded today, 834 were gainers and 1,045 were losers.

• Stocks like Chalet Hotels, Rites, and Cochin Shipyard are in the overbought zone, according to the Money Flow Index or MFI.

• Life Insurance Corporation and Natco Pharma hit their 52-week lows of Rs 613.8 and Rs 588, respectively. Both stocks fall for four sessions.

• Sugar stocks like Balrampur Chini Mills, Shree Renuka Sugars, Triveni Engineering & Industries, and Bannari Amman Sugars are rising in trade. The rise comes after the Centre extends the validity for exporting raw sugar to the US under the tariff rate quota to December 31 from September 30, according to reports.

• Morgan Stanley maintains its ‘Overweight’ rating on Infosys with a target price of Rs 1,550. The brokerage believes that there is scope for a buyback of up to $1.4 billion via an open offer.

  #CNBCTV18Market | MS gives overweight rating on Infosys, sees potential for a buyback of $1-1.4 bn, more likely through an open offer pic.twitter.com/xYikCQoyys

  — CNBC-TV18 (@CNBCTV18Live) October 12, 2022

• Public sector banks like State Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank and Union Bank of India are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

• Traxcn Technologies Rs 309.3-crore IPO gets bids for 2X of the available 2.1 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 4.9X of the available 38.6 lakh shares on offer.

• Metropolis Healthcare, DCM Shriram and JBM Auto trade above their second resistance or R2 level as market trades higher.

• FMCG stocks like Hindustan Unilever, ITC, Nestle India, Dabur India, Britannia Industries and Godrej Consumer Products are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

• Oil marketing and distribution companies like Indian Oil Corp and Bharat Petroleum Corp rise in trade as the Centre will approve a one-time compensation of under-recovery on LPG sales, according to reports. The compensation will be around Rs 20,000 crore.

• L&T Finance Holdings is rising as Securities and Exchange Board of India approves the proposed sale of its 100% stake in L&T Investment Management to HSBC Asset Management (India). L&T Investment Management is the wholly-owned subsidiary of L&T Finance Holdings and also the asset manager of L&T Mutual Fund.

• Biocon hits a 52-week low of Rs 262.25 today after trading low for the last five trading sessions. This is after the European Directorate for the Quality of Medicines and Healthcare (EDQM) found a major deficiency at its Bengaluru active pharmaceutical ingredient plant on October 6.

• Mahindra & Mahindra (M&M) is rising as Jio-bp announces the strengthening of its partnership with the company, according to reports. This pertains to the setting up of an extensive charging infrastructure for M&M’s upcoming new electric vehicle launches. Jio-bp is a fuels and mobility joint venture between Reliance Industries and bp.

• Crompton Greaves Consumer Electricals is falling as 20.79 lakh shares (0.33% equity) amounting to Rs 79 crore change hands in a large trade, according to reports.

  Crompton Large Trade | 20.79 lakh shares (0.33% equity) worth ?79 crore change hands at average ?380/share#LargeTrade #BlockDeal #CenturyPly pic.twitter.com/INPsRHlhnc

  — CNBC-TV18 (@CNBCTV18Live) October 12, 2022

• Surface Transportation, Coal, and Advertising & Media industries rise more than 1.5% in trade today.

• ICICI Securities remains positive on Sobha’s future growth prospects as it retains its ‘Buy’ rating on the company with a target price of Rs 808. The brokerage expects the company to achieve robust sales value growth in FY23 led by rising demand and a strong launch pipeline. It anticipates the company’s revenue to grow at a CAGR of 19.2% over FY22-24.

• NMDC is rising as the Ministry of Corporate Affairs approves its merger into NMDC Steel along with the respective shareholders and creditors.

• Genesys International Corp bags contract worth Rs 46 crore from the state government of Andhra Pradesh to digitize 30,000 sq km of the state’s land records. The company shows up on a screener with stocks that consistently gave high returns over the past five years.

• KR Choksey expects Shree Cements' net profit to fall by 48% YoY in Q2FY23. However, net sales might rise 12.7% YoY. The stock shows up on a screener with increasing revenue for the past three quarters.

• The International Fund (IMF) lowers its forecast for India’s GDP by 60 bps to 6.8% in FY23 from its earlier estimate of 7.4% due to sluggish growth in Q1FY23.

  The IMF, in its latest World Economic Outlook report, cut the forecast for India’s GDP growth in FY23 by 60 bps to 6.8%, warning of a long and tough economic winter.@aruproytweets reports#IMF #GDP #Indianeconomy #GDPhttps://t.co/6VQwa6giBl

  — Business Standard (@bsindia) October 11, 2022

• Suzlon Energy wins an order from the Aditya Birla Group to develop a 144.9 MW wind power project. Suzlon will install 69 units of wind turbine generators of 2.1 MW each. The project will be executed in Gujarat and Madhya Pradesh and will be commissioned in 2023.

• Delta Corp posts a profit of Rs 68.2 crore in Q2FY23 compared to a loss of Rs 22.6 crore in Q2FY22. Its revenue rises more than 3.6X YoY driven by the gaming operations segment, as the revenue from this segment jumps 6.8X YoY. The company shows up on a screener which lists stocks with an improving book value per share for the past two years.

Riding High:

Largecap and midcap gainers today include L&T Finance Holdings Ltd. (77.90, 3.87%), IDFC First Bank Ltd. (55.10, 3.77%) and Mahindra & Mahindra Financial Services Ltd. (207.05, 3.71%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (63.75, -2.75%), Laurus Labs Ltd. (498.75, -2.62%) and PB Fintech Ltd. (457.30, -2.21%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included La Opala RG Ltd. (384.70, 8.09%), Manappuram Finance Ltd. (104.10, 4.94%) and Cholamandalam Investment & Finance Company Ltd. (744.60, 3.53%).

Top high volume losers on BSE were Bombay Burmah Trading Corporation Ltd. (903.90, -0.65%), Indoco Remedies Ltd. (338.70, -0.35%) and Medplus Health Services Ltd. (597.65, -0.24%).

Century Textiles & Industries Ltd. (834.80, 2.25%) was trading at 3.0 times of weekly average.

BSE 500: highs, lows and moving averages

6 stocks overperformed with 52 week highs, while 8 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - IDFC First Bank Ltd. (55.10, 3.77%), IDFC Ltd. (76.35, 5.02%) and ZF Commercial Vehicle Control Systems India Ltd. (10,756.55, 4.82%).

Stocks making new 52 weeks lows included - Biocon Ltd. (267.45, -0.48%) and Natco Pharma Ltd. (590.50, -1.87%).

15 stocks climbed above their 200 day SMA including L&T Finance Holdings Ltd. (77.90, 3.87%) and Supreme Industries Ltd. (2,021.90, 3.07%). 19 stocks slipped below their 200 SMA including Aarti Drugs Ltd. (448.45, -2.82%) and Kajaria Ceramics Ltd. (1,100.85, -2.16%).