Trendlyne Analysis

Indian indices closed in the green for a third straight session. The Nifty 50 rose 225 points or 1.3% and closed above the 18,000 mark. European stocks traded marginally lower ahead of the key Eurozone inflation data release. Most major Asian indices closed in the green, in line with the US indices, which closed sharply higher on Friday. US stocks rose on the back of an encouraging US consumer spending report released on Friday. The tech-heavy NASDAQ 100 rose 3.2% as Apple reported a higher-than-expected profit in Q2FY23. The S&P 500 closed 2.5% higher while the Dow Jones rose 2.6%. Brent crude oil futures trade lower as concerns over Covid curbs in China outweigh strong global crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Auto closed higher than Friday’s close. Nifty IT closed in the green, tracking the NASDAQ 100, which rose over 3% on Friday.

Nifty 50 closed at 18,015.70 (228.9, 1.3%), BSE Sensex closed at 60,746.59 (786.7, 1.3%) while the broader Nifty 500 closed at 15,428.35 (186.8, 1.2%)

Market breadth is in the green. Of the 1,947 stocks traded today, 1,003 were on the uptrend, and 887 went down.

• Stocks like Bank of India, Union Bank of India, Indian Bank, and Canara Bank are in the overbought zone, according to the relative strength index (RSI).

• HDFC Securities maintains a 'Reduce' rating on V-Guard Industries with a target price of Rs 240. This indicates a downside of 5.1%. The brokerage expects the company's EBITDA margin to improve in H2FY23 as its high-cost raw material inventory has been used up. It estimates the company's revenue to grow at a CAGR of 10.6% over FY22-25.

• HFCL rises after receiving purchase orders worth Rs 115 crore from Reliance Projects & Property Management Services for the supply of optical fibre cables. The orders are expected to be executed by January 2023.

• Granules India and Karur Vysya Bank hit their 52-week highs of Rs 372.9 and Rs 104.7 respectively. Both stocks rise for two consecutive sessions.

• DCX Systems' Rs 500-crore IPO gets bids for 2.1X of the available 1.4-crore shares on offer on the first day of bidding. The retail investor quota gets bids for 8.7X of the available 25.3-lakh shares on offer. The offer consists of a fresh issue of Rs 400 crore and an offer for sale of Rs 100 crore.

• Minda Corp rises after signing of technology license and technical assistance agreement with Daesung Eltec, a South Korea-based company. The agreement pertains to Daesung Eltec supporting the company in manufacturing and developing advanced driver assistance products for passenger, commercial and off-road vehicle segments. Its stocks show up on a screener for companies with consistent high returns over the past five years.

• Stocks like Cummins India, Bosch, Mahindra & Mahindra, and Escorts Kubota are rising in trade. All stocks of the broader BSE Auto index are trading in the green.

• Jute & Jute Products, Internet & Catalogue Retail, and Petrochemicals industries rise more than 3% in trade today.

• Indian rupee appreciates 15 paise to 82.32 from Friday’s close of 82.47 against the US dollar in the early trade today.

  The rupee appreciated 15 paise to 82.32 against the US dollar in early trade on Monday tracking easing crude oil prices and a positive trend in domestic equities.https://t.co/46lnD5KOBl

  — Economic Times (@EconomicTimes) October 31, 2022

• Nifty 50 was trading at 17,975.50 (188.7, 1.1%), BSE Sensex was trading at 60,657.63 (697.8, 1.2%) while the broader Nifty 500 was trading at 15,382.50 (0.92%).

• Market breadth is in the green. Of the 1,936 stocks traded today, 1,022 were gainers and 844 were losers.

• CB Ananthakrishnan, Director (Finance) and CFO of Hindustan Aeronautics, expects the orderbook of the company to exceed Rs 1.2 lakh crore and revenue growth of 7% in FY23.

  #ETNOWExclusive | C.B. Ananthakrishnan of @HALHQBLR says
  
  ????Current orderbook at Rs 84,000 cr
  ????Export orders could gain momentum over the next 2-3 years
  ????Expect to achieve minimum 7% revenue growth
  this year @nikunjdalmia @AyeshaFaridi1 @_anishaj @NayantaraRai #StockMarket pic.twitter.com/4tdsojpdFi

  — ET NOW (@ETNOWlive) October 31, 2022

• Axis Direct is optimistic about Aarti Drugs’ growth prospects despite the company’s Q2 gross margins and net profit missing its estimates. The brokerage upgrades its rating on the company to ‘Buy' from ‘Hold' with a target price of Rs 545, indicating an upside of 18%. It believes that the firm is well-placed to benefit from the rise in demand for active pharmaceutical ingredients and a fall in raw material and freight costs. The brokerage expects the company’s net profit to grow at a CAGR of 15% over FY22-24.

• Ramkrishna Forgings wins export orders for heavy-duty commercial vehicles for its European application worth Rs 113.2 crore from a manufacturer of rear and front axles. The order will be conducted over the next four years.

• Larsen & Toubro rises after bagging multiple engineering, procurement, and construction orders worth Rs 1,000–2,500 crore in Saudi Arabia. The orders pertain to the construction of overhead transmission lines and a new gas-insulated substation.

• Maruti Suzuki India is rising as its Q2FY23 net profit jumps 4.3X YoY to Rs 2,112.5 crore. Revenue rises 45.7% YoY, driven by robust sales volume. The company’s sales rise on the back of improving availability of semiconductors and recovery in demand for passenger vehicles. The stock shows up on a screener for companies with zero promoter pledges.

• Hero MotoCorp is rising as its retail sales grow 20% over the festive period. Retail sales in this period were driven by a rise in sales of two-wheelers like 100cc Splendor+ and others.

• Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank, says that the bank's net interest margin will stay around 7.5-8%. He adds that the bank's focus is on MSME growth.

  #OnCNBCTV18 | Net interest margin (#NIM) will remain between 7.5-8% & will normalise in the next two quarters. Expect growth rates to be strong in #Q3FY23 & #Q4FY23, says Bandhan Bank (@bandhanbank_in) MD & CEO Chandra Shekhar Ghosh pic.twitter.com/8sFcnlIL3x

  — CNBC-TV18 (@CNBCTV18Live) October 31, 2022

• Dolly Khanna sells a 0.4% stake in KCP in Q2FY23 and now holds a 3% stake in the company.

• Ashish Kacholia adds Rainbow Childrens Medicare to his portfolio in Q2FY23 and buys a 1% stake in the company.

• Stocks like Tata Consultancy Services, Infosys, HCL Technologies, and Wipro are rising in trade. All stocks of the broader Nifty IT index are trading in the green.

• DCX Systems raises Rs 225 crore from investors ahead of its IPO which opens up for subscription today. The company allotted 1.08 crore equity shares at Rs 207 per share to anchor investors. The investors include Volrado Venture Partners Fund, Cohesion MK Best Ideas and others.

• Vedanta’s Q2FY23 net profit falls 61% YoY to Rs 1,808 crore as total expenses rise 43% YoY. Power and fuel costs surged almost 93.9% YoY, while finance costs increase 54% in Q2. However, revenue increased by 20.6% YoY. The company shows up on a screener listing stocks with improving RoA from the last two years.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (1,152.75, 17.20%), Supreme Industries Ltd. (2,170.30, 6.53%) and JSW Energy Ltd. (337.65, 6.10%).

Downers:

Largecap and midcap losers today include Bandhan Bank Ltd. (238.55, -10.10%), Gland Pharma Ltd. (1,784.35, -4.67%) and LIC Housing Finance Ltd. (405.30, -3.77%).

Volume Rockets

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

Top high volume gainers on BSE included FSN E-Commerce Ventures Ltd. (1,152.75, 17.20%), Swan Energy Ltd. (226.50, 9.98%) and HFCL Ltd. (82.70, 7.40%).

Top high volume losers on BSE were Intellect Design Arena Ltd. (431.60, -13.78%), Bandhan Bank Ltd. (238.55, -10.10%) and Fine Organic Industries Ltd. (5,741.20, -9.65%).

Cholamandalam Financial Holdings Ltd. (628.25, 0.04%) was trading at 42.1 times of weekly average. Grindwell Norton Ltd. (2,103.00, 1.79%) and Indoco Remedies Ltd. (354.00, 3.93%) were trading with volumes 20.9 and 19.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks overperformed with 52-week highs, while 4 stocks hit their 52-week lows.

Stocks touching their year highs included - Bharti Airtel Ltd. (832.00, 1.85%), Blue Star Ltd. (1,236.15, 1.20%) and Container Corporation of India Ltd. (798.00, 1.58%).

Stocks making new 52 weeks lows included - Gland Pharma Ltd. (1,784.35, -4.67%) and Intellect Design Arena Ltd. (431.60, -13.78%).

21 stocks climbed above their 200 day SMA including Swan Energy Ltd. (226.50, 9.98%) and Dalmia Bharat Ltd. (1,600.95, 4.46%). 6 stocks slipped below their 200 SMA including Housing and Urban Development Corporation Ltd. (36.30, -1.49%) and NOCIL Ltd. (242.60, -1.30%).