Trendlyne Analysis

Indian indices closed in the green after gyrating between gains and losses on a volatile day of trade. India’s October Services PMI rose to 55.1 compared to 54.3 in September on the back of strong domestic demand and fast-paced job growth. European indices traded higher than Thursday’s levels. Major Asian indices closed higher on speculations over lifting of Covid restrictions in China.

US indices fell on Thursday as investors assessed the US Fed’s Hawkish commentary while awaiting the US jobs report, scheduled to be released later today. The tech-heavy NASDAQ 100 fell 2% while the Dow Jones closed 0.5% lower. The Bank of England raised its key interest rate by 0.75% - its biggest rate hike in three decades to fight high inflation. Brent crude oil prices traded over 2% higher after falling by 1% on Thursday.

Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Metal closed sharply higher than Thursday’s close. Nifty IT closed in the red, taking cues from the NASDAQ 100, which fell 2% on Thursday.

Nifty 50 closed at 18,127.90 (75.2, 0.4%), BSE Sensex closed at 60,950.36 (114.0, 0.2%) while the broader Nifty 500 closed at 15,536.95 (52.3, 0.3%)

Market breadth is in the green. Of the 1,917 stocks traded today, 1,043 were on the uptick, and 824 were down.

• Money Flow Index (MFI) indicates that stocks like Bank of India, Canara Bank, Syngene International, and Engineers India are in the overbought zone.

• State Bank of India and Rail Vikas Nigam hit all-time highs of Rs 592 and Rs 46.5 respectively. Both stocks rise for five consecutive sessions.

• Cipla is falling despite its Q2FY23 net profit rising 10.9% YoY to Rs 788.9 crore. Revenue grows by 5.6% YoY led by the pharmaceuticals segment rising 5.1% YoY. The stock makes it to the screener with companies that have low debt.

• Global Health’s Rs 2,205.6 crore IPO gets bids for 49% of the available 4.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 25% of the available 2.3 crore shares on offer.

• Jute & Jute Products, Commodity Trading & Distribution, and Financial Institutions industries rise more than 10% over the past week.

• Bikaji Foods' Rs 881.2 crore IPO gets bids for 1.5X of the available 2.06 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.3X of the available 1.01 crore shares on offer.

• Fusion Microfinance's Rs 1,103.9 crore IPO gets bids for 2.95X of the available 2.1 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 51% of the available 1.07 crore shares on offer.

• Indian Energy Exchange’s total production volume falls 13% YoY to 7,972 million units due to the high volume base of October 2021. However, according to National Load Dispatch Center’s data, energy consumption is up 1% YoY to 115 billion units.

• Axis Direct upgrades its rating on Cholamandalam Investment & Finance Co to ‘Buy’ from ‘Hold’ with a target price of Rs 845. This indicates an upside of 13%. The brokerage’s outlook toward the company’s prospects turns positive on the back of rising loan disbursements, a comfortable liquidity position, and a diversified portfolio mix. It expects the company’s net profit to grow at a CAGR of 25.9% over FY22-25.

• Brent crude prices fall to $94.45 per barrel amid higher interest rate concerns from the Central Bank of the US and fresh Covid outbreaks in China.

  Brent crude futures dropped by 22 cents, or 0.2%, to $94.45 a barrel at 0025 GMT after falling 1.5% in the previous session https://t.co/zllKOIkOog

  — Business Standard (@bsindia) November 4, 2022

• Bharat Electronics signs a memorandum of understanding (MoU) with Motorola for cooperation in broadband and push-to-talk service project, according to reports. It will permit the companies to connect their teams with higher speed and efficiency by utilising Motorola WAVE PTX, a push-to-talk service.

• JK Lakshmi Cement is rising even though its Q2FY23 net profit fell 27.6% YoY to Rs 61 crore due to high power and fuel costs. Its revenue improved 13.6% YoY to Rs 1,373.6 crore. The stock shows up on the screener for companies with a rising revenue sequentially for the past three quarters.

• RateGain falls in trade as 28 lakh shares (2.6% equity) amounting to Rs 78.9 crore change hands, according to reports.

  RateGain Large Trade | 28 lakh shares (2.6% equity) worth ?78.9 cr change hands at an average ?282/sh pic.twitter.com/P9xwCuxntL

  — CNBC-TV18 (@CNBCTV18Live) November 4, 2022

• IT stocks like Persistent Systems, Infosys, Coforge, and Mphasis are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

• Vodafone Idea, Jamna Auto Industries, and Hindustan Petroleum Corp trade below their second support or S2 level as the market grows volatile.

• Cochin Shipyard is rising as it bags an order worth Rs 1,000 crore to construct two commissioning service operation vessels from a European client. The project is expected to be completed in 35 months. The company makes it on a screener for stocks that gained more than 20% in one month.

• Nomura upgrades its rating on Larsen & Toubro to ‘Buy’ with a target price of Rs 2,425. The brokerage says that the capex plans in India and the Middle East seem to be going strong for the company. However, its EBITDA margin guidance of 9.5% may be difficult to attain.

  #CNBCTV18Market | Nomura gives buy rating on L&T, says rare instance of India & Middle East capex strengthening pic.twitter.com/6yKoeJDKmB

  — CNBC-TV18 (@CNBCTV18Live) November 4, 2022

• Kalpataru Power Transmission rises as it receives new orders worth Rs 3,567 crore on a consolidated basis for transmission and distribution, water, railway, pipeline and other overseas projects. Its subsidiary JMC Projects is also increasing after bagging orders worth Rs 2,277 crore in the water and building & factories segments.

• Metal stocks like Vedanta, Jindal Steel & Power, and Hindalco Industries are rising in trade. All constituents of the broader BSE Metal index are trading in the green.

• Amara Raja Batteries is rising as its Q2FY23 net profit rises 39.4% YoY to Rs 201.2 crore. The rise in revenue aids the company's EBITDA margin to grow by 140 bps YoY to 13.3%. The company features in a screener reflecting stocks with zero promoter pledge.

• Indian rupee rises to 82.66 against the US dollar in the early trade today.

  #Rupee pic.twitter.com/V1Imnqy7iE

  — NDTV (@ndtv) November 4, 2022

• Vodafone Idea’s Q2FY23 net loss widens to Rs 7,592.5 crore against Rs 7,295.7 crore in Q2FY22. However, its revenue from services rose 2% QoQ as average revenue per unit (ARPU) grew 2.3% QoQ to Rs 131. Akshaya Moondra, CEO of the company, says, "We continue to remain engaged with our lenders and investors for further fundraising to make required investments for network expansion and 5G rollout."

• Hero MotoCorp’s Q2FY23 net profit falls by 7.7% YoY to Rs 688.4 crore on the back of high input costs and weakening rural demand. However, revenue rises 7.3% YoY to Rs 9,158.2 crore. Niranjan Gupta, CEO of the company says, “The global macro headwinds may keep the playfield a bit uncertain, and navigating the same over the next few quarters will be important.” The stock shows up on a screener of companies with an improving book value per share over the last two years.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (21.70, 11.86%), Adani Enterprises Ltd. (3,833.25, 6.76%) and The New India Assurance Company Ltd. (94.75, 6.76%).

Downers:

Largecap and midcap losers today include Aditya Birla Fashion and Retail Ltd. (330.65, -6.17%), Varun Beverages Ltd. (1,138.90, -4.21%) and Hindustan Petroleum Corporation Ltd. (203.60, -3.53%).

Volume Shockers

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

Top high volume gainers on BSE included Indian Overseas Bank (21.70, 11.86%), Amara Raja Batteries Ltd. (569.40, 9.55%) and Punjab & Sind Bank (18.65, 9.06%).

Top high volume losers on BSE were Ajanta Pharma Ltd. (1,256.20, -6.79%), Aditya Birla Fashion and Retail Ltd. (330.65, -6.17%) and Hindustan Petroleum Corporation Ltd. (203.60, -3.53%).

GMM Pfaudler Ltd. (1,975.60, 6.12%) was trading at 14.8 times of weekly average. The New India Assurance Company Ltd. (94.75, 6.76%) and Exide Industries Ltd. (175.55, 6.49%) were trading with volumes 14.8 and 13.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks overperformed with 52-week highs, while 6 stocks hit their 52-week lows.

Stocks touching their year highs included - Bank of India (67.50, 5.47%), Bank of Maharashtra (22.75, 7.82%) and Bharat Heavy Electricals Ltd. (76.05, 0.93%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,345.80, -1.13%) and TV18 Broadcast Ltd. (36.25, 4.77%).

12 stocks climbed above their 200 day SMA including Amara Raja Batteries Ltd. (569.40, 9.55%) and Vedanta Ltd. (321.95, 6.29%). 14 stocks slipped below their 200 SMA including Indigo Paints Ltd. (1,542.65, -5.34%) and Kansai Nerolac Paints Ltd. (448.00, -3.52%).