Trendlyne Analysis

Nifty 50 lost over 80 points and closed in the red on a volatile day of trade. European indices followed the global trend and traded lower than Tuesday’s levels amid weak global cues. Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 35 bps to 6.25% from the earlier 5.9%. RBI also revised down India’s FY23 GDP growth to 6.8% from 7%. Major Asian indices closed in the red, in line with the US indices, which closed lower on Tuesday.

US stocks fell as investors continued to assess the US Fed’s move in its next meeting to combat inflation. In addition, Goldman Sach’s CEO David Solomon warned about jobs and pay cuts amid uncertain outlook. The tech-heavy NASDAQ 100 index fell 2% while the Dow Jones closed 1% lower. Brent crude oil futures traded in the red after falling over 8% in the last three trading sessions as traders assess slowing global economic growth weakening crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media closed lower than Tuesday’s close. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed deep in the red on Tuesday.

Nifty 50 closed at 18,560.50 (-82.3, -0.4%), BSE Sensex closed at 62,410.68 (-215.7, -0.3%) while the broader Nifty 500 closed at 15,862.00 (-60.9, -0.4%)

Market breadth is in the red. Of the 1,950 stocks traded today, 731 were gainers and 1,154 were losers.

• Money Flow Index (MFI) indicates that stocks like GMR Airports Infrastructure, Aditya Birla Capital, Sharda Cropchem and JK Lakshmi Cement are in the overbought zone.

• Brent crude oil prices slipped below $80 per barrel due to weakening global demand.

  #TheGlobalExclusive | @FGEnergy's Fereidun Fesharaki says
  
  -Oil could fall below $80/bbl if China locks down again
  -China is importing more oil from Russia
  -Singapore GRMs were ridiculously high in June 2022 @nikunjdalmia #Oil #SingaporeGRMs #China pic.twitter.com/8NbNsx9jJQ

  — ET NOW (@ETNOWlive) December 7, 2022

• UNO Minda beats Schaeffler India in QoQ and YoY revenue and profit growth, FII holdings, PB ratio and broker average rating. But it lags in PE ratio, annual RoE, one-year price change and broker average target upside.

• Indiabulls Real Estate rises despite the broader sectoral index Nifty Realty falling in trade. The stock ranks negative and checks 35% parameters on Trendlyne’s checklist. Meanwhile, it shows up in a screener of stocks with PE Ratio under 10.

• Dabur India and Cummins India hit their 52-week highs of Rs 610.7 and Rs 1458.9 respectively. Dabur India rises for two sessions, while Cummins India trades higher for five sessions.

• Ahluwalia Contracts secures an order worth Rs 55.4 crore pertaining to a construction at Plaksha University, in Punjab. With this, the company’s order inflow in FY23 stands at Rs 4,017.6 crore. The stock shows up in a screener for companies with low debt.

• High-return durable stocks like Allcargo Logistics, HCL Technologies and Hindustan Aeronautics gain more than 13% in the past 90 days.

• Apollo Hospitals Enterprise, Tata Steel and Hindalco Industries outperform their respective sectors in annual profit growth.

• Healthcare Equipment & Supplies, Telecommunications Equipment and Metals & Mining sectors gain over 6.5% in the past month.

• FII holdings of PI Industries, Zomato and Triveni Turbine increase by 17%, 15.5% and 5.3% QoQ respectively.

• Seshagiri Rao, Joint Managing Director and Group CFO of JSW Steel, says that the global demand for steel fell 3-4% but production levels are adapting. He adds that the import of steel to India is increasing as its economy is in a better position compared to its peers.

  #OnCNBCTV18 | Steel demand has come down globally, and production levels are getting adjusted in line with fall in steel demand
  
  Companies will not see an impact on capex due to rising finance costs
  
  Seshagiri Rao, JSW Steel to CNBC-TV18#CNBCTV18At23 pic.twitter.com/ztXq8Y6u8F

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

• ICICI Securities upgrades its rating on Thermax to ‘Buy’ from ‘Add’ with a target price of Rs 2,480. This indicates an upside of 18.8%. The brokerage is positive on the firm’s prospects given its technical expertise, strong order inflow, robust balance sheet and prudent working capital management. It also believes the company will be a key beneficiary of the centre’s thrust towards clean energy and decarbonisation initiatives. It expects Thermax’s revenue to grow at a CAGR of 19% over FY22-25.

• Realty stocks like DLF, Macrotech Developers, Godrej Properties and Oberoi Realty are falling in trade as RBI announces a decision to hike rates by 35 bps to 6.25%. The broader sectoral index Nifty Realty is also trading in the red.

• Siemens, AU Small Finance Bank and Power Finance Corp trade above their third resistance or R3 level as the market trades lower.

• RBI downgrades its forecast for India’s GDP growth in FY23 to 6.8% from the earlier 7%. It keeps the inflation forecast unchanged at 6.7%.

  Here's a summary of MPC announcements made by Governor Shaktikanta Das ????#RBI #RBIMPC #MPC #RBIPolicy pic.twitter.com/SWh0qYLdsx

  — Moneycontrol (@moneycontrolcom) December 7, 2022

• Media stocks like Network 18 Media & Investments, PVR, Inox Leisure, TV18 Broadcast and Zee Entertainment Enterprises are falling in trade. All the constituents of the broader sectoral index Nifty Media are also trading in the red.

• Larsen & Toubro is rising as its construction business secures orders worth more than Rs 7,000 crore from ArcelorMittal Nippon Steel India. The orders are for the installation of two blast furnaces at Hazira, in Gujarat, and building a six-metric tonnes per annum ore beneficiation plant in Sagasahi, Odisha.

• Siemens is rising after emerging as the lowest bidder for the 9,000 HP (horsepower) electric locomotives project in Dahod, Gujarat. The stock has a high rank of 52.2% in Trendlyne’s checklist score. It also shows up in a screener for companies with improving RoA over the past two years.

• Reserve Bank of India’s Monetary Policy Committee raises the repo rate by 35 bps to 6.25% from the earlier 5.9%.

  #BREAKING: MPC Meet: Reserve Bank of India raises repo rate by a smaller 35 bps amid moderating inflation pressure https://t.co/xdEdyPcGoV #RBIPolicy #MPC #RBI

  — Economic Times (@EconomicTimes) December 7, 2022

• Bikaji Foods is rising as it reports an increase in net profit by 43% YoY to Rs 41.5 crore and net sales by 31.8% YoY. The company also saw a YoY increase in raw material and finance costs by 25% and 74% respectively in Q2. Deepak Agarwal, MD of the company, says, "We will continue to expand our distribution network and start CSD channel in the current quarter." The company also shows up in a screener of stocks with low debt.

• Ircon International wins an order worth Rs 122 crore for the design, installation, testing and certifying of a telecommunication system for a junction in Sri Lanka Railways. The contract will be completed in 24 months. The company shows up in a screener of stocks with high TTM EPS growth.

• Fennel Private sells a 0.95% stake (6 lakh shares) in Sapphire Foods for Rs 83.6 crore in a bulk deal on Tuesday. Meanwhile, Campbell Advertising sells a 0.2% stake in Easy Trip Planners for Rs 19.3 crore. Quant Mutual Fund buys a 0.5% stake in Jindal Stainless for Rs 48 crore in another bulk deal.

Riding High:

Largecap and midcap gainers today include Siemens Ltd. (2,905.35, 5.12%), Indian Overseas Bank (24.05, 4.57%) and Hindustan Petroleum Corporation Ltd. (232.55, 3.79%).

Downers:

Largecap and midcap losers today include Oberoi Realty Ltd. (912.00, -3.42%), Jubilant Foodworks Ltd. (538.70, -2.99%) and Atul Ltd. (8459.65, -2.70%).

Movers and Shakers

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

Top high volume gainers on BSE included Hikal Ltd. (385.85, 9.83%), Central Bank of India (28.15, 6.83%) and Rashtriya Chemicals & Fertilizers Ltd. (135.70, 5.85%).

IFB Industries Ltd. (939.50, 3.26%) was trading at 14.5 times of weekly average. Siemens Ltd. (2,905.35, 5.12%) and HDFC Asset Management Company Ltd. (2,273.80, 3.73%) were trading with volumes 9.2 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks hit their 52-week highs, while 1 stock tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (336.15, 3.78%), AIA Engineering Ltd. (2,748.00, -1.22%) and Bank of Baroda (176.50, 1.20%).

Stock making new 52 weeks lows included - Indigo Paints Ltd. (1,326.15, -0.47%).

7 stocks climbed above their 200 day SMA including IFB Industries Ltd. (939.50, 3.26%) and ICICI Lombard General Insurance Company Ltd. (1,248.00, 2.28%). 17 stocks slipped below their 200 SMA including Sobha Ltd. (634.40, -5.19%) and Sterlite Technologies Ltd. (170.90, -3.91%).