Trendlyne Analysis

Indian indices closed in the green, with the volatility index, India VIX, falling significantly. The Nifty 50 rose over 150 points and closed above its 50-day simple moving average or SMA. European stocks traded higher as the UK's new Finance Minister Jeremy Hunt reversed previous tax cuts in the mini budget on Monday.

Major Asian indices closed in the green, in line with the US indices which closed sharply higher on Monday. US stocks rose on the back of strong earnings led by Bank of America, which rose over 6% after its earnings release. The tech-heavy NASDAQ 100 index rose nearly 3.5% while the Dow Jones closed 1.9% higher. Brent crude oil futures traded lower as markets weigh tightening supply against rising recession concerns that could affect demand for crude oil.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media open higher than Monday’s close. Nifty IT closed in the green, tracking the tech-heavy NASDAQ 100, which closed 3.5% higher on Monday.

Nifty 50 closed at 17,490.60 (178.8, 1.0%), BSE Sensex closed at 58,960.60 (549.6, 0.9%) while the broader Nifty 500 closed at 15,061.95 (155.8, 1.1%)

Market breadth is in the green. Of the 1,931 stocks traded today, 1,153 were in the positive territory and 709 were negative.

• Stocks like Godfrey Phillips India, Mazagon Dock Shipbuilders, Sun Pharmaceutical Industries, and Rajesh Exports are in the overbought zone, according to the relative strength index or RSI.

• Tata Communications’ Q2FY23 net profit falls 2.1% QoQ to Rs 532.3 crore as finance costs for the company rise 22% QoQ. However, revenue increases by 2.8% QoQ because of an increase in revenue from data services and payment solutions. The company shows up on a screener which lists stocks with improving RoCE in the last two years.

• Indian Bank and City Union Bank hit their 52-week highs of Rs 214.5 and Rs 195.3, respectively. Indian Bank rises for two consecutive sessions, while City Union Bank trades higher for three sessions.

• Gujarat Fluorochemicals is rising as its Q2FY23 net profit surges 74.4% YoY to Rs 361.2 crore and revenue increases by 51.6% YoY. The company’s board announces an interim dividend of Rs 2 per share for FY23, which will be paid by November 17. The stock shows up on the screener which lists companies with increasing revenue sequentially for the past eight quarters.

• SKF India, Siemens, and Vedant Fashions trade above their third resistance or R3 level as market trades higher.

• Computer Hardware, Marine Ports & Services, and Internet & Catalogue Retail industries fall over 10% in trade over the past month.

• Zee Entertainment is rising in trade as 53 million shares (5.5% stake) amounting to Rs 1,396 crore change hands in a block deal, according to reports. Reports suggest that Invesco Developing Markets Fund considered selling half of its stake in the company.

  Shares of Zee Entertainment surged 6% to Rs 280.05 in Tuesday's intra-day trade, after nearly 53 million shares of the company changed hands via block deals.#StockMarket #MarketsWithBS #StocksInFocus https://t.co/rjvwZrt7Yo

  — Business Standard (@bsindia) October 18, 2022

• Alembic Pharma is falling as the US Food and Drugs Administration issues a form 483 with four procedural observations to the company. The inspection was conducted at the company’s oncology injectable formulation facility in Panelav, Gujarat. The company says none of the observations are related to data integrity.

• Media stocks like Zee Entertainment, PVR, and Network 18 Media & Investments rise more than 2% in trade. The broader Nifty Media index trades above 1.8%.

• Nifty 50 was trading at 17,496.75 (185.0, 1.1%), BSE Sensex was trading at 58,967.55 (556.6, 1.0%) while the broader Nifty 500 was trading at 15,054.90 (1.00%).

• Market breadth is surging up. Of the 1,912 stocks traded today, 1,281 were gainers and 551 were losers.

• Gland Pharma is rising as Morgan Stanley initiates coverage with an ‘Overweight’ rating and a target price of Rs 2,748.The brokerage is positive on the company given its strong presence in a difficult injectable category and robust balance sheet.

  #BrokerageRadar | @MorganStanley on Gland Pharma: Initiate coverage with Overweight; A strong balance sheet and its sharp 45% YTD stock price correction#StockMarket #StocksToWatch pic.twitter.com/mPhfBIhxH1

  — ET NOW (@ETNOWlive) October 18, 2022

• EKI Energy is rising as it announces a partnership with Impact Capital Asset Management Pte (ICAM), a Singapore-based fund management company, to start a climate impact fund to help in the development of projects that mitigate climate change. The fund is worth Rs 1,000 crore with EKI investing Rs 200 crore and the rest will be raised by ICAM from institutional investors. The fund will be incorporated as a Variable Capital Company (VCC) with EKI holding a 51% stake in the company.

• ONGC plans to buy a stake in a Russian firm that will manage the Sakhalin 1 project located in Russia through its arm ONGC Videsh, according to reports. ONGC Videsh considers buying the additional stake in the project if it is commercially viable.

  EXCLUSIVE India's ONGC eyes stake in Russian entity managing Sakhalin 1 -sources https://t.co/9lK3czw011 pic.twitter.com/Tng7oMCKxf

  — Reuters (@Reuters) October 18, 2022

• KRChoksey maintains its ‘Accumulate’ rating on Tata Elxsi with a target price of Rs 8,884. This indicates an upside of 14.1%. The brokerage is positive about the company’s future growth potential as it expects strong deal wins across business segments, new client additions, and robust traction in its transportation and medical segment. It anticipates the company’s revenue to grow at a CAGR of 23.3% over FY22-24.

• Mahindra & Mahindra Financial Services is rising as the company enters a strategic partnership with India Post Payments Bank (IPPB). India Post Payments Bank will provide lead referral services to Mahindra & Mahindra Financial Services for passenger vehicles, three-wheeler, tractors and commercial vehicle loan categories and cash EMI deposit facility to existing Mahindra & Mahindra Financial Services customers at post offices.

• Suzlon Energy is rising as it secures an order from Adani Green Energy to develop a 48.3 MW wind power project. The company will install 23 wind turbine generators with a rated capacity of 2.1 MW each. The project is located in Gujarat and is expected to be commissioned in 2023. This is a repeat order from Adani Green Energy, in addition to an existing order for developing a 226.8 MW wind power project.

• Sunil Singhania sells stake in Paras Defence and Space Technologies during Q2FY23, now holds below 1% as against 1.3% in Q1FY23.

• Container Corp of India is rising as its total volumes grow 16.6% YoY to 11.4 lakh units in Q2FY23. A rise in the export-import volume of 18.4% aids growth in total volume. The company features in the screener showing stocks with improving book value per share over the past two years.

• Samvardhana Motherson International falls over 6% as 14.5 crore shares (4.6% equity) amounting to Rs 951.9 crore change hands in a large trade, according to reports.

  #CNBCTV18Market | Samvardhana Motherson Large Trade | 1456.8 lakh shares (4.6% equity) worth ?951.9 cr change hands at an average of ?64.8/share pic.twitter.com/s31Y1S3AJP

  — CNBC-TV18 (@CNBCTV18Live) October 18, 2022

• Tata Coffee is rising as its Q2FY23 net profit jumps 4X YoY to Rs 142 crore which includes an exceptional item from profit from the sale of property worth Rs 105 crore. Revenue increases 30% YoY in Q2. The company shows up on a screener of stocks giving consistent high returns over the last five years.

• Adani Transmission’s total energy units sold rises 13% YoY to 2.2 billion units in Q2FY23 driven by an increase in energy demand led by the commercial and industrial segments. The stock shows up on the screener for companies with revenue increasing sequentially for the past three quarters.

• Can Fin Homes Q2FY23 net profit rise 14.6% YoY to Rs 141.7 crore as net interest income increases 31% YoY. Net interest margin rises marginally and asset quality improves in Q2. Gross NPA and net NPA go down by 16 bps and 12 bps YoY, respectively. The company shows up on a screener listing stocks with improving profit margins YoY.

Riding High:

Largecap and midcap gainers today include Bharat Heavy Electricals Ltd. (68.20, 8.34%), NHPC Ltd. (41.95, 6.61%) and Adani Transmission Ltd. (3,243.00, 5.49%).

Downers:

Largecap and midcap losers today include Tata Elxsi Ltd. (7,204.65, -7.43%), Aarti Industries Ltd. (744.90, -5.48%) and Max Healthcare Institute Ltd. (407.45, -2.87%).

Volume Shockers

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

Top high volume gainers on BSE included Bharat Heavy Electricals Ltd. (68.20, 8.34%), RHI Magnesita India Ltd. (718.35, 7.02%) and Gujarat Alkalies & Chemicals Ltd. (926.80, 6.00%).

Top high volume losers on BSE were Tata Elxsi Ltd. (7,204.65, -7.43%), Alok Industries Ltd. (15.80, -1.86%) and Crisil Ltd. (3,040.35, -1.14%).

Polycab India Ltd. (2,749.05, 4.97%) was trading at 7.7 times of weekly average. Network 18 Media & Investments Ltd. (70.00, 5.42%) and SJVN Ltd. (32.70, 1.40%) were trading with volumes 7.0 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks made 52-week highs, while 10 stocks hit their 52-week lows.

Stocks touching their year highs included - City Union Bank Ltd. (193.35, 0.13%), Coal India Ltd. (241.70, 1.55%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (965.45, -0.07%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (560.15, -1.91%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,366.05, 0.04%).

20 stocks climbed above their 200 day SMA including Honeywell Automation India Ltd. (39,872.15, 3.70%) and SBI Cards and Payment Services Ltd. (883.70, 2.94%). 8 stocks slipped below their 200 SMA including Tata Elxsi Ltd. (7,204.65, -7.43%) and IFB Industries Ltd. (935.30, -2.42%).