Trendlyne Analysis

Nifty 50 recovered around 100 points from its day’s low but still closed in the red. European indices traded higher than Thursday’s levels. However, major Asian indices closed in the red, in line with the US indices, which closed lower on Thursday. US stocks fell amid rising treasury yields after the US Fed indicated that it may need to raise the interest rates by more than expected to rein in high inflation. The tech-heavy NASDAQ 100 fell 0.2% while the S&P 500 closed 0.3% lower. Crude oil is set for a second weekly decline after Brent Crude oil futures fell over 5% on Thursday amid a worsening demand outlook.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty Auto closed lower than Thursday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed lower on Thursday.

Nifty 50 closed at 18,307.65 (-36.3, -0.2%), BSE Sensex closed at 61,663.48 (-87.1, -0.1%) while the broader Nifty 500 closed at 15,550.85 (-46.4, -0.3%)

Market breadth is in the red. Of the 1,930 stocks traded today, 708 were in the positive territory and 1,168 were negative.

• Money Flow Index (MFI) indicates that stocks like Housing and Urban Development Corp, Mazagon Dock Shipbuilders, Amara Raja Batteries and Indian Railway Finance Corp are in the overbought zone.

• CESC, Kalyan Jewellers India, ITI and Manappuram Finance trade below their second support or S2.

• Coal, Forest Materials and Retailing sectors fall by more than 5% over the past week.

• Sudarshan Chemical Industries and Shilpa Medicare hit their 52-week lows of Rs 379 and Rs 275.5 respectively. Sudarshan Chemical falls for two sessions, while Shilpa Medicare trades lower for four sessions.

• Bharat Electronics signs multiple licensing agreements for the transfer of technology with DRDO's labs and centres for manufacturing digital radar warning receiver, multi-kW beam directed optical channel, laser-based end game fuze and unexploded ordnance handling robot. The company also signs a joint development agreement with the Indian Institute of Technology, Madras, for co-operation in the field of quantum science and technology.

• HDFC Securities maintains 'Add' rating on Berger Paints with a target price of Rs 620. This indicates a potential upside of 2%. The brokerage believes that the company's gross margin will improve in H2FY23 as the cost of raw materials has started to ease up. It expects the company's revenue to grow at a CAGR of 14.3% over FY22-25.

• Strides Pharma Science's arm Strides Pharma Global receives US FDA approval for potassium chloride oral solution USP. It is used to treat hypokalemia with or without metabolic alkalosis when dietary management with potassium-rich foods or diuretic dose reduction are insufficient.

• PSU Bank stocks like Bank of Maharashtra, Indian Overseas Bank, UCO Bank and Central Bank of India are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

• ICICI Direct upgrades its rating on Sobha to ‘Buy’ from ‘Hold’ with a target price of Rs 750, indicating an upside of 18%. The brokerage is positive about the company’s future growth prospects given its rising sales volumes, robust operating cash flows and falling debt. It expects the company’s net profit to grow at a CAGR of 66.5% over FY22-24.

• Polycab India is falling as 16.13 lakh shares (1.1% equity) amounting to Rs 406.6 crore change hands, according to reports.

  #Polycab Large Trade | 16.13 lakh shares (1.1% equity) worth ?406.6 cr change hands at an average of ?2,520/sh#LargeTrade #BlockDeal pic.twitter.com/ODi4Hf3hzu

  — CNBC-TV18 (@CNBCTV18Live) November 18, 2022

• Aurobindo Pharma is rising as its wholly owned subsidiary, Eugia Pharma Specialties, gets final approval from the US FDA for amphotericin B liposome injection. It is used to treat cryptococcal meningitis in HIV-infected patients, among others. According to IQVIA, the estimated market size of the injection is $145 million for 12 months ending September.

• RP Goyal, Director (Finance) of NHPC, says that the company plans to increase its capex to Rs 8,000 crore in FY23. He adds that NHPC’s dues are now at Rs 1,200 crore from Rs 2,600 crore earlier.

  #OnCNBCTV18 | Looking to commission Subansiri lower project in FY23-24. Current dues have come down to ?1,200 cr from ?2,600 cr 6 months ago. Plan to list solar subsidiary in the next 3 years with a capacity of 1,000 MW, says RP Goyal of NHPC pic.twitter.com/4ECU5s8ofc

  — CNBC-TV18 (@CNBCTV18Live) November 18, 2022

• Ahluwalia Contracts bags orders worth Rs 530.1 crore from the Mumbai Metropolitan Region Development Authority (MMRDA) and the Rail Land Development Authority, New Delhi. The MMRDA order pertains to building structural steelworks for the Mumbai Metro Rail for Rs 68.1 crore. The second order is to upgrade Chandigarh Railway Station for Rs 462 crore.

• Defence stocks like Hindustan Aeronautics, Data Patterns (India), Bharat Electronics and Bharat Dynamics are falling in trade. The broader Defence industry is also trading in the red.

• Bajaj Healthcare is rising as it gets zero observations under Form 483 from the US FDA after a pre-approval inspection at the company's active pharmaceutical ingredient (API) facility in Vadodara, Gujarat.

• CLSA maintains ‘Underperform’ rating on Info Edge with a target price of Rs 4,100. The brokerage says that the management is focused on gaining market share, over increasing the company’s profitability.

  #CNBCTV18Market | CLSA gives underperform rating on Info Edge, says demand undercurrents are strong in real estate & education business pic.twitter.com/e2ic9rEbFD

  — CNBC-TV18 (@CNBCTV18Live) November 18, 2022

• Bharat Electronics signs a memorandum of understanding (MoU) with Armoured Vehicles Nigam to meet the requirements of defence markets. The companies seek to utilise their complementary strengths and capabilities to address both domestic and export opportunities in the areas of combat vehicles, main battle tanks (MBTs), infantry fighting vehicles (IFVs), armoured fighting vehicles (AFVs) and related systems.

• Vijay Kedia buys Atul Auto on Thursday through warrants and now holds 18.2% in the company.

• BofA Securities Europe, Morgan Stanley Asia and Societe Generale buy 0.7%, 0.9% and 1.09% stakes respectively in One97 Communications (Paytm) for a total of Rs 1,005.4 crore in a bulk deal on Thursday.

• Public holder Mala Gopal Gaonkar further sells a 2% stake (5.7 crore shares) in FSN E-Commerce Ventures (Nykaa) for Rs 1,009 crore in a bulk deal on Thursday. Canada Pension Plan Investment Board picks up a 0.6% stake (1.7 crore shares) worth Rs 299.3 crore in Nykaa in another bulk deal.

• The Securities and Exchange Board of India allows IHH Healthcare, a Malaysia-based company, to proceed with its open offer for Fortis Healthcare after obtaining relevant permissions from the Delhi High Court. IHH Healthcare plans to buy 26.1% stake each in Fortis Healthcare and Fortis Malar Hospitals.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (402.40, 8.30%), Indian Overseas Bank (21.35, 5.43%) and Union Bank of India (73.90, 5.20%).

Downers:

Largecap and midcap losers today include Bharat Electronics Ltd. (107.35, -2.94%), Adani Total Gas Ltd. (3,644.65, -2.90%) and SRF Ltd. (2,275.25, -2.73%).

Movers and Shakers

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

Top high volume gainers on BSE included IFB Industries Ltd. (1,084.50, 16.05%), Bank of Maharashtra (25.10, 8.66%) and Graphite India Ltd. (390.25, 7.12%).

Top high volume losers on BSE were Chalet Hotels Ltd. (318.85, -10.11%), Mastek Ltd. (1538.60, -5.45%) and Polycab India Ltd. (2,527.50, -1.66%).

SKF India Ltd. (4,993.30, 1.07%) was trading at 7.5 times of weekly average. Central Bank of India (23.55, 3.06%) and Indian Overseas Bank (21.35, 5.43%) were trading with volumes 4.9 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks overperformed with 52-week highs, while 10 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,340.00, 0.26%), Bank of India (75.10, 1.08%) and Bank of Maharashtra (25.10, 8.66%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,321.75, -0.46%) and Motilal Oswal Financial Services Ltd. (677.65, -0.88%).

16 stocks climbed above their 200 day SMA including IFB Industries Ltd. (1,084.50, 16.05%) and Indiabulls Real Estate Ltd. (86.80, 6.77%). 18 stocks slipped below their 200 SMA including Chalet Hotels Ltd. (318.85, -10.11%) and Glenmark Pharmaceuticals Ltd. (409.85, -4.53%).