Trendlyne Analysis

Indian indices closed in the green, with the volatility index, India VIX, falling significantly. Nifty 50 lost over 160 points from its day’s high but still closed 1% higher. European stocks followed the global trend and traded higher than Thursday’s levels.

Major Asian indices closed in the green, in line with the US indices, which closed sharply higher on Thursday. US inflation print came in at 8.2% in September, with energy and food prices accelerating to a new four-decade high. In reaction, US indices gyrated overnight with indices closing over 2% higher after losing 2% in early trade on Thursday. The tech-heavy NASDAQ 100 index opened in the red but recovered over 5% from its day’s low and closed 2.3% higher. The S&P 500 rose 2.6% while the Dow Jones closed 2.8% higher. Crude oil prices headed for a weekly loss as Covid cases in China hurt demand amid higher-than-expected US crude oil inventories.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, despite the benchmark index closing in the green. Nifty Media and Nifty Metal closed lower than Thursday’s levels. Nifty IT closed in the green, as investors assess major IT companies’ Q2FY23 earnings.

Nifty 50 closed at 17,185.70 (171.4, 1.0%), BSE Sensex closed at 57,919.97 (684.6, 1.2%) while the broader Nifty 500 closed at 14,815.10 (84.8, 0.6%)

Market breadth is in the red. Of the 1,935 stocks traded today, 874 were on the uptick, and 972 were down.

• Stocks like Cochin Shipyard, Rajesh Exports, Castrol India, and Mazagon Dock Shipbuilders are in the overbought zone, according to the relative strength index or RSI.

• Bharat Heavy Electricals signs a non-binding MoU with Coal India and NLC India with the intention of setting up coal gasification projects. The company will set up the projects using its indigenously-developed pressurised fluidised bed gasification technology.

• FNS E-Commerce Ventures (Nykaa) and PB Fintech hit their all-time lows of Rs 1,198 and Rs 445.2, respectively. Both stocks fall for five consecutive sessions.

• Rakesh Jhunjhunwala's portfolio sees sale of a 0.5% stake in Canara Bank in Q2FY23, bringing the holdings down to a 1.5% stake.

• Restaurant Brands Asia is falling in trade as Everstone Capital may sell its stake in the company, according to reports.

  Sources To Reuters | Everstone Capital considering selling stake in India’s Restaurant Brands Asia
  
  ?? Alert: Restaurant Brands Asia owns and operates Burger King India pic.twitter.com/MxTpKT9vSS

  — CNBC-TV18 (@CNBCTV18Live) October 14, 2022

• Cyient is falling as its Q2FY23 net profit declines 31.9% QoQ to Rs 79.1 crore due to an increase in employee benefit expenses and other expenses. Revenue rises 11.7% QoQ driven by growth in the services segment. The company’s board announces an interim dividend of Rs 10 per share for FY23, which will be paid by November 9.

• BSE Realty, BSE Oil & Gas, and S&P BSE Utilities fall more than 2% in the past week.

• Federal Bank touches a 52-week high after its Q2FY23 net profit rises 52.9% YoY to Rs 703.7 crore as net interest income rises 19% YoY. The bank’s asset quality improves as its gross NPA and net NPA fall 78 bps and 34 bps YoY, respectively. The bank shows up on a screener of stocks with growth in quarterly net profit and increasing profit margin (YoY).

• India’s Wholesale Price Index (WPI) inflation eases to 10.7% in September, compared to 12.41% in August. WPI food inflation falls to 8.08%.

  #NewsAlert | Sept WPI inflation rate at 10.70% vs 12.41% in Aug
  
  ????Sept WPI primary articles inflation at 11.73% vs 14.93% in Aug
  ????Sept WPI fuel and power inflation at 32.61%#WPI #WPIINflation pic.twitter.com/ipDxcTy1Hr

  — ET NOW (@ETNOWlive) October 14, 2022

• ICICI Securities maintains its ‘Buy’ rating on Havells India with a target price of Rs 1,621. This implies an upside of 31.6%. The brokerage believes the stock is well-placed to grow despite a rise in copper prices due to its ability to pass on high raw material costs. It expects the company’s revenue to grow at a CAGR of 21.9% over FY22-24.

• Angel One is rising as its Q2FY23 net profit grows 59.1% YoY to Rs 213.6 crore. The company's client base rose 77.4% YoY and average daily turnover is up 110.2% YoY to aid the rise in net profit. It shows up in the screener which reflects stock that have a rising return on equity over the past two years.

• The Centre mulls PLI Scheme for footwear and leather sectors, according to reports. The PLI scheme could offer incentives of up to 8%.

• #Government may consider #PLI Scheme for #footwear & #leather sector which may have an outlay of ?2,600 cr, offer #incentives up to 8%, sources to @RoyLakshman pic.twitter.com/zgntFk8T9a

  — CNBC-TV18 (@CNBCTV18Live) October 14, 2022

• Larsen & Toubro is rising as its construction business wins repeat orders worth Rs 1,000-2,500 crore from the government of Gujarat. The order is for design, supply, construction and commissioning of pumping system and pipeline work from Tappar dam to Nirona dam.

• Banks like HDFC Bank, Kotak Mahindra Bank, ICICI Bank, AU Small Finance Bank, and Bandhan Bank are rising in trade. The broader sectoral index Nifty Bank is also trading in the green.

• PSP Projects comes out as the lowest bidder for the Centre’s development project of a sustainable tourist/pilgrimage destination in Gujarat. The bid value was worth Rs 345.3 crore. The company shows up on a screener of stocks with improving book value for the last two years.

• Mindtree is rising as its Q2FY23 net profit grows 7.9% QoQ to Rs 508.7 crore. Its revenue rises 8.9% QoQ driven by the banking, financial services, and insurance segment and robust deal wins. Revenue from North America and the UK & Ireland grows, while revenue from the European market declines. The stock shows up on the screener which lists companies with consistent high share price growth over the past five years.

• CLSA maintains its ‘Outperform’ rating on Tata Motors with a target price of Rs 473. The brokerage expects strong demand in the commercial vehicles segment. It also expects the company’s new launches to improve market share.

  #BrokerageRadar CLSA maintains an 'Outperform' rating on Tata Motors and sees near-term solid demand growth for commercial vehicles, @vinnii_motiwala is here with more details- #StockMarket #StocksToWatch pic.twitter.com/U8NbJuyL0W

  — ET NOW (@ETNOWlive) October 14, 2022

• Ashish Kacholia adds Shankara Building Products to his portfolio in Q2FY23, buys a 2% stake in the company worth Rs 32.9 crore.

• Infosys’ Q2FY23 net profit rises 12.3% QoQ to Rs 6,021 crore with revenue increasing by 6%. Revenue from North America increased however revenue from European clients fell marginally in Q2. The management is being cautious by reducing its margin guidance to 21-22% as it suspects a slowdown in western geographies. However, it raised the lower end of its revenue growth guidance to 15%-16% (from 14%-16%) in FY23. The company also announced a buyback of equity shares worth Rs 9,300 crore at a price of Rs 1,850 per share.

Riding High:

Largecap and midcap gainers today include Federal Bank Ltd. (130.35, 4.36%), Indraprastha Gas Ltd. (384.95, 3.86%) and Infosys Ltd. (1,474.25, 3.83%).

Downers:

Largecap and midcap losers today include Adani Power Ltd. (331.25, -4.50%), Adani Wilmar Ltd. (654.85, -4.23%) and Adani Total Gas Ltd. (3,047.15, -4.10%).

Volume Shockers

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

Top high volume gainers on BSE included IFB Industries Ltd. (985.20, 11.35%), Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (698.05, 5.29%) and Elgi Equipments Ltd. (421.95, 5.20%).

Top high volume losers on BSE were Max Financial Services Ltd. (714.45, -3.39%), Asahi India Glass Ltd. (609.20, -2.11%) and Cyient Ltd. (759.95, -1.64%).

TCNS Clothing Co. Ltd. (655.85, 3.51%) was trading at 4.7 times of weekly average. Federal Bank Ltd. (130.35, 4.36%) and CSB Bank Ltd. (244.15, 0.35%) were trading with volumes 4.2 and 4.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks made 52-week highs, while 12 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Federal Bank Ltd. (130.35, 4.36%), IDFC First Bank Ltd. (54.30, -0.28%) and IDFC Ltd. (76.35, 2.35%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (571.80, -0.66%) and Biocon Ltd. (261.30, -0.42%).

31 stocks climbed above their 200 day SMA including IFB Industries Ltd. (985.20, 11.35%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (698.05, 5.29%). 6 stocks slipped below their 200 SMA including Shipping Corporation of India Ltd. (116.55, -2.75%) and Supreme Industries Ltd. (1,939.55, -1.82%).