Trendlyne Analysis 

Nifty 50 lost over 150 points from the day’s high and closed just above the 17,650 mark. Indian indices closed in the red today, after rising for seven straight trading sessions. European stocks traded higher, extending their gains from Monday as Rishi Sunak is set to become the new UK Prime Minister today. However, major Asian indices closed mixed, despite the US indices closing higher on Monday. The Hang Seng China Enterprises Index, which includes Chinese stocks listed in Hong Kong closed lower after falling over 7% on Monday, touching its lowest level since 2008. Chinese stocks fell as investors reacted to the consolidation of power by Chinese President Xi Jinping.

US indices closed higher on Monday supported by strong quarterly earnings. The tech-heavy NASDAQ 100 rose nearly 1.1%, while the Dow Jones closed over 1.3% higher. Brent crude oil trades in the red after falling 2.2% on Monday after data showed China’s crude imports falling by 2% in September as Zero-Covid policy continues to hurt crude oil demand.

Nifty Smallcap 100 and Nifty Next 50 closed higher, despite the benchmark index, closing in the red. Nifty FMCG and Nifty Energy closed lower than Monday’s levels. Nifty IT closed higher, taking cues from the NASDAQ 100, which rose over 1% on Monday.

Nifty 50 closed at 17,642.65 (-88.1, -0.5%), BSE Sensex closed at 59,543.96 (-287.7, -0.5%) while the broader Nifty 500 closed at 15,148.35 (-50.4, -0.3%)

Market breadth is in the red. Of the 1,918 stocks traded today, 684 were on the uptrend, and 1,183 went down.

• MindTree sees a long build-up in its October 27 future series as its open interest rises 15.4% with put to call ratio of 0.84.

• FSN E-Commerce Ventures (Nykaa) hits an all-time low of Rs 1,108.05, the stock falls below its issue price of Rs 1,125.

• Bank of Maharashtra rises post results, it outperforms Nifty 50 by 9.5% over the past week.

• Home First Finance Co India, Kajaria Ceramics, and Schaeffler India trade below their second support or S2 level as the market trades lower.

• Ramkrishna Forgings' Executive Director and CFO states that the revenue growth guidance for FY23 is intact at 20-25%. He remains confident of the truck market in North America and expects the volume to rise by 10% in H2FY23.

  #OnCNBCTV18 | FY23 revenue guidance intact at 20-25%. Exports volume will be up by 10% in H2 from current levels, says Lalit Khetan of Ramkrishna Forgings pic.twitter.com/jSEFwe5uSv

  — CNBC-TV18 (@CNBCTV18Live) October 25, 2022

• NHPC and Bharat Dynamics hit their all-time highs of Rs 45.5 and Rs 988.6, respectively. NHPC rises for the past two consecutive sessions while Bharat Dynamics rises for the past three consecutive sessions.

• IT stocks like Persistent Systems, Tech Mahindra, Larsen & Toubro Infotech, and Infosys are rising in trade. The broader sectoral index Nifty IT is also trading in green.

• Multi Commodity Exchange is surging as its Q2FY23 net profit jumps 93.7% YoY to Rs 63.3 crore. Revenue rises 53.1% YoY on the back of robust growth in trading of options and stable futures volume. The stock shows up on the screener for companies with rising net profits sequentially for the last four quarters.

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

• Axis Capital upgrades its rating on Kotak Mahindra Bank to 'Buy' with a target price of Rs 2,300. This indicates an upside of 24.4%. The brokerage believes that a healthy credit demand and a kind asset quality environment will provide a strong loan growth opportunity to the company. It expects the bank' net profit to grow at a CAGR of 21% over FY22-25.

  Here's what analysts expect from #KotakMahindraBank going forward.https://t.co/V2EIGST7d4

  — BQ Prime (@bqprime) October 25, 2022

   

• Dr. Reddy's Laboratories recalls 2,838 ampules of phytonadione injectable emulsion in the US market due to failed stability specifications, according to reports. Cipla recalls 9,041 cartons of arformoterol tartrate inhalation solution due to lack of assurance of sterility.

• Reliance Industries' board of directors approve the demerger of its financial services undertaking into Reliance Strategic Investments. The subsidiary will be renamed to Jio Financial Services and listed on the Indian stock exchanges. Shareholders of Reliance Industries will get one share of Jio Financial Services for one share held in Reliance Industries.

• BOB Capital Markets downgrades Laurus Labs to ‘Hold’ from ‘Buy’ and cut its target price to Rs 540 from Rs 645. This indicates an upside of 11%. The brokerage revises its growth outlook on the company due to a steep fall in revenue from finished dosage forms and pricing uncertainty with antiretroviral drugs. Another key reason for the brokerage changing its rating on the firm is due to the management slashing its revenue growth guidance for FY23.

• DLF's Q2FY23 net profit rises 25.9% YoY to Rs 477 crore despite a 12.6% YoY fall in revenue to Rs 1,360.5 crore. The company's new sales booking rises 36% YoY to Rs 2,052 crore.

• Edelweiss maintains its ‘Buy’ rating on CreditAccess Grameen with a target price of Rs 1,200. This implies an upside of 25%. The company is the brokerage’s top pick in the micro-finance institution space given its robust traction in loan disbursements and customer acquisitions, improving asset quality, and expanding margins. It expects the company’s net profit to grow at a CAGR of 71.5% over FY22-24.

• Commodity Printing/Stationery, IT Networking Equipment, and Shipping industries rise by more than 15% over the past month.

• Seshagiri Rao, joint Managing Director and group Chief Financial Officer of JSW Steel says that steel prices are stabilising. He says this will help the company’s H2FY23 performance to be better than H1FY23. He expects the company’s crude steel production for FY23 to be 25 million tonnes and the company’s capex and expansion plans are on track.

  #EarningsWithETNOW | Seshagiri Rao of @JSWSteel says
  
  ????Steel prices have started stabilising
  ????H2 will be better than H1
  ????Keeping our guidance for FY23 unchanged@AyeshaFaridi1 @NayantaraRai #StockMarket #StocksToWatch pic.twitter.com/iYSqLWymM7

  — ET NOW (@ETNOWlive) October 25, 2022

• Ashish Kacholia adds Arvind Fashions to his portfolio in Q2FY23, buys a 1.1% stake in the company.

• ICICI Bank’s Q2FY23 net profit rises 37.1% YoY to Rs 7,557.8 crore as provisions fall 39.4% YoY and net interest income rises 22.6% YoY. The bank’s asset quality improves with gross non-performing assets falling 22 bps YoY to 3.19%. The bank shows up on a screener of stocks with improving return on equity (RoE) over the last two years.

• Hindustan Unilever is falling despite its Q2FY23 net profit rising 22.2% YoY to Rs 2,665 crore led by the home care and personal care segments. Revenue rises 16.1% YoY driven by price hikes and volume growth. The stock shows up on a screener which lists companies with rising profits sequentially for the past four quarters.

• Reliance Industries’ Q2FY23 net profit marginally dips 0.2% YoY to Rs 13,656 crore as the windfall profit tax on the export of fuel and crude oil impacts the firm’s profitability. Revenue grows 33.8% YoY driven by the retail, digital services, and oil to chemicals segments. The stock makes it to the screener for companies with revenue rising sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include Bank of India (56.45, 10.15%), Bharat Heavy Electricals Ltd. (71.10, 7.32%) and Indraprastha Gas Ltd. (407.65, 6.34%).

Downers:

Largecap and midcap losers today include Laurus Labs Ltd. (452.90, -5.61%), Schaeffler India Ltd. (2,961.80, -3.98%) and Indus Towers Ltd. (187.05, -3.66%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Bank of India (56.45, 10.15%), Multi Commodity Exchange of India Ltd. (1,495.25, 9.22%) and Mahanagar Gas Ltd. (838.30, 6.66%).

Top high volume losers on BSE were Laurus Labs Ltd. (452.90, -5.61%), Fortis Healthcare Ltd. (265.75, -2.58%) and CSB Bank Ltd. (229.25, -1.97%).

JK Lakshmi Cement Ltd. (561.95, 4.67%) was trading at 7.2 times of weekly average. Latent View Analytics Ltd. (378.50, 5.08%) and KEI Industries Ltd. (1630.35, 6.39%) were trading with volumes 6.4 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks took off, crossing 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Bank of Baroda (148.35, 2.70%), Canara Bank (284.20, 5.06%) and Cipla Ltd. (1,155.90, 0.78%).

Stocks making new 52 weeks lows included - TV18 Broadcast Ltd. (35.05, -1.27%) and Indian Energy Exchange Ltd. (139.20, 2.02%).

16 stocks climbed above their 200 day SMA including Multi Commodity Exchange of India Ltd. (1,495.25, 9.22%) and Mahanagar Gas Ltd. (838.30, 6.66%). 10 stocks slipped below their 200 SMA including Kajaria Ceramics Ltd. (1,065.05, -4.01%) and Rajesh Exports Ltd. (651.00, -2.84%).