Trendlyne Analysis

Indian indices closed in the red with the Nifty 50 losing over 60 points and closing below the 18,100 mark. European stocks traded mixed as investors look ahead to the conclusion of a key US Federal Reserve policy-setting meeting today. Most major Asian indices closed higher, despite the US indices closing in the red on Tuesday. US stocks fell as stronger-than-expected US jobs report raised the possibility of the Federal Reserve continuing with its aggressive monetary policy tightening to combat elevated inflation. The tech-heavy NASDAQ 100 closed over 1% lower while the Dow Jones fell 0.2% on a volatile day of trade. Brent crude oil futures traded higher after rising over 2% on Tuesday after the industry report showed a surprise drop in US crude inventories.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, despite the benchmark index closing in the red. Nifty Bank and Nifty Realty closed lower than Tuesday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed 1% lower on Tuesday.

Nifty 50 closed at 18,072.10 (-73.3, -0.4%), BSE Sensex closed at 60,906.09 (-215.3, -0.4%) while the broader Nifty 500 closed at 15,486.70 (-50.7, -0.3%)

Market breadth is balanced. Of the 1,933 stocks traded today, 934 were gainers and 921 were losers.

• LIC Housing Finance sees a short buildup in its November 24 future series as its open interest rises 100.6% with a put-call ratio of 0.55.

• Bikaji Foods, a manufacturer of packaged snacks, opens for IPO subscription tomorrow. The price band for the issue is Rs 286-300 per share and is entirely an offer for sale for Rs 881.2 crore. Global Health, a multi-speciality healthcare provider, also opens for IPO subscription tomorrow. The price band for the issue is Rs 319-336 per share and is entirely an offer for sale for Rs 1,705.6 crore.

• Telecom stocks like Bharti Airtel, Indus Towers, and Vodafone Idea are falling in trade. The broader Telecom Services sector drops more than 2%.

• AIA Engineering and Torrent Pharmaceuticals hit their 52-week highs of Rs 2,814 and Rs 1,708 respectively. AIA Engineering rises for three sessions, while Torrent Pharmaceuticals trades higher for four sessions.

• Alembic Pharmaceuticals is rising as it receives final approval from the US Food & Drug Administration for its abbreviated new drug application for mesalamine extended-release capsules. The drug is used to treat inflammation in the digestive system in adults. It is estimated to have a market value of $133 million over the past year till June.

• Fusion Microfinance's Rs 1,103.9-crore IPO gets bids for 7% of the available 2.1-crore shares on offer on the first day of bidding. The retail investor quota gets bids for 7% of the available 1.07-crore shares on offer. The offer consists of a fresh issue of Rs 600 crore and an offer for the sale of 1.36 crore shares.

• Devyani International, Varroc Engineering, and Chambal Fertilisers & Chemicals trade below their third support or S3 level as market trades lower.

• DCX Systems' Rs 500-crore IPO gets bids for 69.8X of the available 1.4-crore shares on offer on the last day of bidding. The retail investor quota gets bids for 61.8X of the available 25.3-lakh shares on offer.

• Bofa upgrades its rating on FSN E-Commerce Ventures (Nykaa) to ‘Buy’ with a target price of Rs 1,555. The brokerage believes that the company is in a better position to sustain its revenue growth and margin improvement. This comes after the company's net profit rose 251.1% YoY to Rs 4.1 crore and revenue grew 39% YoY to Rs 1,230.8 crore in Q2FY23.

  #MarketsWithETNOW | @MyNykaa extends its upmove after a solid second quarter! BofA has also upgraded the stock to buy, @vinnii_motiwala is here with the fine print. Listen in #StockMarket #StocksToWatch pic.twitter.com/KTiUH6yraP

  — ET NOW (@ETNOWlive) November 2, 2022

• HDFC Securities upgrades its rating on Tata Power to ‘Add’ from ‘Reduce’ with a target price of Rs 243, indicating an upside of 6.1%. The brokerage’s outlook on the company’s prospects turns positive on the back of a growing order book and a decline in loss from the Mundra power plant. It expects the firm’s revenue to improve at a CAGR of 11.3% over FY22-25.

• Distributors, Food & Drugs Retailing, and Jute & Jute Products industries rise more than 24% in trade in the past month.

• NCC is rising as it wins two orders worth Rs 1,056 crore from state government agencies related to the water and environment division.

• TVS Motor Co is falling despite its monthly sales in October rising by 2% YoY to 360,288 units, driven by a 7% YoY growth in domestic two-wheeler sales. Its scooter sales rise 20% YoY, whereas its motorcycle sales decline 4.5% YoY. Three-wheeler sales rise 16% YoY to 15,658 units.

• Centre reduces the windfall tax on locally produced crude oil to Rs 9,500 per tonne from Rs 11,000 earlier. But it increases the export tax on diesel to Rs 13 per litre from Rs 12 and aviation turbine fuel (ATF) to Rs 5 per litre from Rs 3.5.

  Windfall tax cut on crude oil; tax on ATF, diesel export increased#Windfalltax #ATF #exports https://t.co/YocF41HlRq

  — ET NOW (@ETNOWlive) November 2, 2022

• Fusion Microfinance raises Rs 331.2 crore from anchor investors ahead of its IPO, which opens up for subscription today. The company allotted 89.99 lakh equity shares at Rs 368 per share to anchor investors. The investors include Nomura Trust, ICICI Prudential, Edelweiss and others.

• Infosys' board of directors to seek approval from shareholders for a share buyback of Rs 9,300 crore from November 3 to December 2. The IT company's board had previously announced the buyback at Rs 1,850 per share through the open market route.

• BC Asia Investments VII sells a 0.54% stake (1.6 crore shares) in Axis Bank for Rs 1,486.8 crore in a bulk deal on Tuesday.

• Kansai Nerolac Paints’ Q2FY23 net profit rises 23.4% YoY to Rs 113.7 crore with revenue improving 19% YoY. The management says that raw material prices have started to cool off. However, the company reports an increase in input costs by 11.2% YoY in Q2. Anuj Jain, Managing Director of Kansai Nerolac Paints, says, “Company has taken price increase in both decorative and industrial segments and continues to be in discussion with OEMs for further price increases.” The company shows up on a screener of stocks with improving book value for the last two years.

• Karnataka Bank rises in trade as around 22.57 lakh shares (0.7% equity) amounting to Rs 25.13 crore change hands, according to reports.

  Karnataka Bank Large Trade | 22.57 lakh shares (0.7% equity) worth ?25.13 crore change hands at average of ?112/share#LargeTrade #BlockDeal pic.twitter.com/2gW4kEWxYm

  — CNBC-TV18 (@CNBCTV18Live) November 2, 2022

• Adani Ports & Special Economic Zone (APSEZ) is falling despite its Q2FY23 net profit rising 76.3% YoY to Rs 1,677.5 crore on the back of robust cargo volumes. Revenue improves 47.5% YoY, driven by a 30.5% growth in the port activities segment. Karan Adani, CEO and Managing Director of the company, said, “Extending this strong performance into October, APSEZ achieved 200 MMT of cargo throughput within seven months, another milestone.”

• Tech Mahindra’s Q2FY23 net profit rises 13.6% QoQ to Rs 1,285.4 crore. Revenue grows by 3.3% QoQ on the back of communications, media, and entertainment (CME) segment. In terms of geography mix, the US market drives revenue growth for the company. Its attrition rate falls by 200 bps QoQ to 20%. The stock shows up on a screener for companies with revenue rising sequentially for the past eight quarters.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (1,879.95, 5.25%), Cholamandalam Investment & Finance Company Ltd. (744.70, 4.96%) and Sun TV Network Ltd. (544.10, 4.11%).

Downers:

Largecap and midcap losers today include LIC Housing Finance Ltd. (366.65, -8.45%), Kansai Nerolac Paints Ltd. (467.10, -3.57%) and Bharti Airtel Ltd. (809.85, -3.08%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mazagon Dock Shipbuilders Ltd. (724.60, 13.56%), Vakrangee Ltd. (34.00, 7.94%) and Redington Ltd. (147.90, 7.68%).

Top high volume losers on BSE were LIC Housing Finance Ltd. (366.65, -8.45%), Chambal Fertilisers & Chemicals Ltd. (308.05, -5.54%) and Devyani International Ltd. (187.30, -3.63%).

Westlife Development Ltd. (763.50, 2.89%) was trading at 19.6 times of weekly average. Bayer Cropscience Ltd. (4,584.80, -0.65%) and Kansai Nerolac Paints Ltd. (467.10, -3.57%) were trading with volumes 7.1 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (2,773.70, 2.74%), Bharat Forge Ltd. (847.20, -0.41%) and Coal India Ltd. (245.80, 0.06%).

19 stocks climbed above their 200 day SMA including Vakrangee Ltd. (34.00, 7.94%) and Redington Ltd. (147.90, 7.68%). 7 stocks slipped below their 200 SMA including LIC Housing Finance Ltd. (366.65, -8.45%) and Shree Cements Ltd. (22,327.20, -1.38%).