Trendlyne Analysis

Indian indices settled in the green after gyrating between losses and gains on a volatile day of trade. The Nifty 50 closed just above the 18,200 mark for the first time since January. European indices followed the global trend and traded higher than Friday’s levels. Major Asian indices closed in the green, in line with the US indices which closed higher on a volatile day of trade on Friday. US stocks rose after the US jobs report indicated a higher-than-expected unemployment rate, which could discourage the US Fed to continue with its jumbo-sized rate hikes. The tech-heavy NASDAQ 100 rose 1.6% while the Dow Jones closed 1.4% higher. Brent crude oil futures fell from its two-month high after China commits to the Zero-Covid policy, which hurts the crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Auto and Nifty Bank closed higher than Friday’s levels. Nifty IT closed in the green, taking cues from the NASDAQ 100, which closed 1.6% higher on Friday.

Nifty 50 closed at 18,203.35 (86.2, 0.5%), BSE Sensex closed at 61,185.15 (234.8, 0.4%) while the broader Nifty 500 closed at 15,614.75 (83.9, 0.5%)

Market breadth is in the green. Of the 1,956 stocks traded today, 1,087 were on the uptrend, and 804 went down.

• Britannia Industries sees a long buildup in its November 24 future series as its open interest rises 37.6% with a put-call ratio of 1.02.

• Divi's Laboratories is falling as its Q2FY23 net profit falls 18.6% YoY to Rs 493.6 crore. Fall in revenue and rise in expenses caused the EBITDA margin to decline 7.7 percentage points to 33.5%. The company features on a screener that reflects stocks where mutual funds decreased their shareholding in the last quarter.

• InterGlobe Aviation’s (Indigo) Q2FY23 net loss widens to Rs 1,583.3 crore against Rs 1,435.6 crore in Q2FY22 as expenses increased. Aircraft fuel expenses rose 3X YoY due to rising airline traffic. However, the company also records an increase in revenue by 2.2X YoY to Rs 12,497.6 crore in Q2. Indigo’s CEO Pieter Elbers says, "We witnessed good yields with strong demand across the network. However, fuel prices and exchange rates have impacted our financial performance."

• Gautam Saraogi, CEO of Go Fashion, says that the company aims to acquire more than 25% market share in 3-4 years. He says that high ad spends caused the margin to fall in Q2FY23 to 29.8%, but maintains a margin guidance of 31-32% during FY23.

  #OnCNBCTV18 | Maintain ad spend #guidance of 3.5%. Expect #margin of 31-32% in #FY23. Organised bottom wear market is growing by more than 20%, says Gautam Saraogi of Go Fashion pic.twitter.com/Kn1N5MGSdS

  — CNBC-TV18 (@CNBCTV18Live) November 7, 2022

• Global Health’s Rs 2,205.6 crore IPO gets bids for 9.6X of the available 4.7 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 88% of the available 2.3 crore shares on offer.

• Bikaji Foods' Rs 881.2 crore IPO gets bids for 26.7X of the available 2.06 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 4.8X of the available 1.01 crore shares on offer.

• Rajesh Exports is rising after being selected by the Centre for the Rs 18,100 crore production-linked incentive scheme to produce advanced chemistry cells. The company incorporates a wholly-owned subsidiary for manufacturing advanced chemistry cells.

• ICICI Securities upgrades its rating on Akzo Nobel India to ‘Buy’ from ‘Add’ with a target price of Rs 2,800. This indicates an upside of 32.8%. The brokerage’s outlook on the company’s prospects improves on the back of market share gains and expansion of the distribution network despite inflationary pressures. It expects the company’s profit to grow at a CAGR of 20.2% over FY22-24.

• Rail Vikas Nigam surges as it wins a contract worth Rs 137.6 crore from the Central Organisation of Railway Electrification. The order pertains to increasing the speed potential to 160 kmph on the Pradhankhanta-Bandhua section of the Dhanbad division under the East Central Railway.

• Sanjiv Chadha, Managing Director and CEO of Bank of Baroda, expects credit cost to come down to 1-1.25%, compared to 1.25-1.5% earlier. He also expects the corporate segment's loans to grow.

  #OnCNBCTV18 | Credit cost will now be at 1-1.25% vs earlier guidance of 1.25-1.5%. See much stronger loan growth momentum going ahead, says Sanjiv Chadha of Bank Of Baroda pic.twitter.com/FdUvbes0q4

  — CNBC-TV18 (@CNBCTV18Live) November 7, 2022

• Zydus Lifesciences is rising as it receives an establishment inspection report from the US Food & Drug Administration (USFDA) for its formulations facility in Moraiya, near Ahmedabad, Gujarat. The USFDA determined that the inspection classification of the facility is Voluntary Action Indicated. The inspection from July 26 to August 5 concluded with four observations.

• Voltas plans to invest Rs 1,000 crore to expand its manufacturing capacity by adding a new plant near Chennai and a compressor plant in partnership with China's Highly International, according to reports.

• Public sector banks like Bank of Baroda, Indian Bank, and Union Bank of India rise more than 4% in trade. The broader Nifty PSU Bank index trades above 3%.

• Retail sales in the automotive industry rise 47.6% YoY to 20.9 lakh units in October, finds data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales rise the most by 51.1% YoY. Retail sales of car makers are also up 40.5% YoY.

  #FADA releases #October vehicle sales data, total vehicle retail sales rise by 47.6% on YoY basis to 20.94 lakh units vs 14.18 lakh units in October 2021 pic.twitter.com/5ixWjTknAR

  — CNBC-TV18 (@CNBCTV18Live) November 7, 2022

• TVS Motor's Q2FY23 net profit rises 59.5% YoY to Rs 386.3 crore. Growth in revenue helps the EBITDA margin to increase 130 bps YoY to 12.7%. The company features on a screener reflecting stocks with high trailing twelve-month EPS growth.

• Power Grid Corp of India is rising as its Q2FY23 net profit improves 8.1% YoY to Rs 3,650.2 crore. Its revenue grows by 8.6% YoY to Rs 11.150.6 crore. The company’s board approves the payment of an interim dividend of Rs 5 per share for FY23. It will be paid on November 30. The stock shows up on a screener for companies with increasing revenue sequentially for the past four quarters.

• Indian rupee appreciates 33 paise to 82.11 from Friday's close of 82.44 against the US dollar in the early trade today.

  #Rupee opens higher against US dollar pic.twitter.com/yMdjSV46W8

  — CNBC-TV18 (@CNBCTV18Live) November 7, 2022

• Birlasoft's Chief Executive Officer (CEO) and Managing Director (MD) Dharmander Kapoor resigns due to personal reasons. His resignation will be effective from November 30. The company appoints Angan Guha in his stead for a period of three years, effective December 1.

• Ashish Kacholia buys a 2.1% stake in Raghav Productivity Enhancers for Rs 19.5 crore in a bulk deal on Friday.

• Britannia touches a 52-week high after reporting a 28% YoY increase in net profit to Rs 493.2 crore in Q2FY23. Managing Director Varun Berry says, "An increase in distribution reach helped deliver a robust topline growth of 22% YoY, aided by mid-single-digit volume growth, as we record our highest quarterly revenue." However, Marico’s Q2FY23 net profit fell 2.6% YoY to Rs 301 crore on rising input costs, the depreciating rupee and a higher tax rate.

• State Bank of India’s Q2FY23 net profit surges 73.9% YoY to Rs 13,265 crore with net interest income rising 12.8%. The bank shows significant improvement in asset quality as gross NPAs fall 138 bps YoY to 3.5%. The bank revises its credit growth outlook to 14-16% in FY23 from the earlier 11-12%, as demand for corporate loans rises. It shows up on a screener of stocks with consistent high returns over the past five years.

Riding High:

Largecap and midcap gainers today include Bank of Baroda (158.25, 9.48%), Britannia Industries Ltd. (4,125.00, 8.43%) and Union Bank of India (58.80, 6.43%).

Downers:

Largecap and midcap losers today include Divi's Laboratories Ltd. (3,420.00, -8.71%), Marico Ltd. (504.90, -6.36%) and Vedanta Ltd. (306.35, -4.85%).

Movers and Shakers

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

Top high volume gainers on BSE included JM Financial Ltd. (77.20, 10.36%), Rail Vikas Nigam Ltd. (50.70, 10.10%) and Bank of Baroda (158.25, 9.48%).

Top high volume losers on BSE were Divi's Laboratories Ltd. (3,420.00, -8.71%), Marico Ltd. (504.90, -6.36%) and Alkyl Amines Chemicals Ltd. (2,952.65, -1.98%).

Bombay Burmah Trading Corporation Ltd. (925.00, 5.37%) was trading at 28.9 times of weekly average. Britannia Industries Ltd. (4,125.00, 8.43%) and Sundaram Clayton Ltd. (4,925.00, 3.00%) were trading with volumes 14.0 and 13.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

34 stocks hit their 52-week highs, while 5 stocks hit their 52-week lows.

Stocks touching their year highs included - Bank of Baroda (158.25, 9.48%), Bank of India (70.25, 4.93%) and Bank of Maharashtra (23.25, 2.20%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,337.00, -0.65%) and Voltas Ltd. (834.55, -1.27%).

20 stocks climbed above their 200 day SMA including Finolex Industries Ltd. (156.85, 7.76%) and Jindal Stainless Ltd. (164.80, 7.12%). 9 stocks slipped below their 200 SMA including Marico Ltd. (504.90, -6.36%) and Vedanta Ltd. (306.35, -4.85%).