Trendlyne Analysis

Indian indices closed in the red, with the Nifty 50 falling below the 18,500 mark on a volatile day of trade. However, European stocks traded higher than Thursday's levels. Barring Indian indices, most major Asian indices closed in the green, in line with the US indices, which closed higher on Thursday. The S&P 500 snapped its five-day losing streak and closed 0.75% higher led by tech stocks like Nvidia, which rose over 6%. The Dow Jones closed 0.55% higher while the tech-heavy NASDAQ 100 rose 1.2%.

Despite a good showing by US stocks on Thursday, the indices are set for a weekly loss as investors look ahead to the next week's US Federal Reserve meeting. The Fed is expected to raise the interest rates by 50 bps. Crude oil prices continued to fall due to concerns over lower demand on the back of slow economic growth. In the last five trading sessions, crude oil prices have plunged over 11%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty FMCG closed higher than Thursday’s levels. Nifty IT closed deep in the red, despite the NASDAQ 100 closing higher on Thursday.

Nifty 50 closed at 18,496.60 (-112.8, -0.6%), BSE Sensex closed at 62,181.67 (-389.0, -0.6%) while the broader Nifty 500 closed at 15,812.75 (-98.4, -0.6%)

Market breadth is moving down. Of the 1,948 stocks traded today, 535 were gainers and 1,366 were losers.

• Tata Chemicals beats Deepak Nitrite in YoY & QoQ revenue and profit growth, PE ratio and broker average target upside. But it lags in annual RoE and RoCE, and quarterly price change.

• Sanofi India, Cummins India, Birla Corp and Godrej Consumer Products trade above their second resistance or R2 level despite the markets trading lower.

• IIFL Finance and Castrol India hit their 52-week highs of Rs 495 and Rs 136.8 respectively. While IIFL Finance rises for three sessions, Castrol India trades higher for two sessions.

• Credit Suisse expects a fall in the share price of top four IT companies by 10-27% due to valuation correction. It expects a valuation correction of 15% for Infosys and Wipro, and 8% for Tata Consultancy Services. The brokerage believes that cut in revenue estimates will not lead to a huge fall in net profit as strong margin levers are in place for FY24.

  #CNBCTV18Market | Expect top 4 IT cos to fall 10-27%, driven by valuation correction. Do not believe rev cuts this will translate into large earnings cut, says Credit Suisse on IT companies pic.twitter.com/K8yI0YJf0z

  — CNBC-TV18 (@CNBCTV18Live) December 9, 2022

• PSU banks like Bank of India, Union Bank of India and Bank of Maharashtra fall more than 6% in trade. The broader Nifty PSU Bank index falls more than 3% in trade.

• Software & Services, Oil & Gas and Telecom Services sectors decline more than 2.5% over the past week.

• Realty stocks like Indiabulls Real Estate, Brigade Enterprises, Macrotech Developers and Sunteck Realty are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

• Vinod Aggarwal, Managing Director and CEO of Eicher Motors, says that the company will achieve double-digit growth during FY23-24. He adds that CV companies are trying to lower discounts as margins were affected by it.

  #CNBCTV18Exclusive | FY23-24 will be a growth year, should see double-digit growth. Growth will reach peak levels of FY18-19 this year for light & medium duty trucks, says Vinod Aggarwal of Eicher Motors pic.twitter.com/YrjA5f8l3s

  — CNBC-TV18 (@CNBCTV18Live) December 9, 2022

• Bajaj Consumer Care is rising as its board of directors approves the buyback of fully paid equity shares in its board meeting held today. The company plans to buy back 33.7 lakh shares (or 2.3% stake) for Rs 240 each, aggregating to a total of Rs 80.9 crore.

• Larsen & Toubro's arm Larsen & Toubro International FZE acquires OPRO.AI for $1 million. OPRO.AI is engaged in the business of offering deep learning optimization software for process industries.

• ICICI Securities maintains its ‘Buy’ rating on Cera Sanitaryware with a target price of Rs 6,280. This indicates an upside of 18.3%. The brokerage continues to remain positive on the company due to its extensive product portfolio, strong brand presence and robust balance sheet. It expects the company’s revenue to grow at a CAGR of 24.5% over FY22-25.

• IT stocks like HCL Technologies, Infosys, Tech Mahindra, Persistent Systems and Mphasis are falling in trade today. The broader sectoral index Nifty IT is also falling as all its constituents are trading in the red.

• Metropolis Healthcare appoints Surendran Chemmenkotil as the Chief Executive Officer of the company, with effect from January 2, 2023.

• Yes Bank rises over 12% in early trade as 5.3 crore shares (0.2% equity) amounting to Rs 102.8 crore change hands, according to reports.

  #YesBank Large Trade | 5.3 cr shares (0.2% Equity) worth ?102.8 cr change hands at ?20/Sh pic.twitter.com/RFVkWaZHQk

  — CNBC-TV18 (@CNBCTV18Live) December 9, 2022

• GMM Pfaudler’s arm Pfaudler GmbH will acquire industrial mixing systems manufacturer Mixel France and its subsidiary Mixel Agitator for 7 million euros (Rs 60.9 crore). The company says this acquisition is in line with its growth and diversification strategy. The company shows up in a screener for stocks in the PE Buy Zone with a good durability score and rising momentum score.

• One97 Communications (Paytm) is rising as the company's board of directors is set to consider a proposal for the buyback of equity shares in a meeting to be held on Tuesday. The company features in a screener with stocks with improving return on equity (RoE) for the past two years.

• Ashok Leyland appoints Shenu Agarwal as the Managing Director and Chief Executive Officer for five years starting from December 8, 2022, subject to the approval of shareholders.

• Retail sales for the automotive industry rose 25.7% YoY to 23.8 lakh units in November, according to data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales increased 23.6% YoY and retail sales of car makers were up 21.3% YoY.

  Total vehicle retail sales in November up 25.7% at 23.80 Lk units vs 18.93 Lk units YoY. Passenger Vehicle sales up 21.3% at 3.0 Lk units vs 2.5 Lk Units YoY, @FADA_India November data pic.twitter.com/35pRy8CDka

  — CNBC-TV18 (@CNBCTV18Live) December 9, 2022

• Anil Gupta, promoter and director of KEI Industries, sells a 0.12% stake in the company for Rs 17.6 crore. He now holds a 12.3% stake in the company.

• Dhruv Manmohan Sawhney, promoter of Triveni Engineering & Industries, sells 1.7 crore shares (7.03% stake) in the company for Rs 477 crore in a bulk deal.

• Hindustan Unilever acquires stakes in Nutritionalab and Zywei Ventures, two health and wellness companies, for Rs 334.3 crore. The company picked up a 51% stake in Zywie Ventures for Rs 264.3 crore and a 19.8% stake in Nutritionalab for Rs 70 crore. The firm says these acquisitions are in line with its strategy to foray into the health and wellness segment.

Riding High:

Largecap and midcap gainers today include YES Bank Ltd. (19.70, 10.99%), One97 Communications Ltd. (544.60, 7.16%) and The New India Assurance Company Ltd. (110.50, 5.04%).

Downers:

Largecap and midcap losers today include HCL Technologies Ltd. (1,027.50, -6.71%), IDBI Bank Ltd. (54.75, -5.60%) and Union Bank of India (83.70, -5.42%).

Volume Rockets

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

Top high volume gainers on BSE included YES Bank Ltd. (19.70, 10.99%), Central Bank of India (33.15, 5.07%) and The New India Assurance Company Ltd. (110.50, 5.04%).

Top high volume losers on BSE were Vakrangee Ltd. (27.25, -9.17%), HCL Technologies Ltd. (1,027.50, -6.71%) and Sudarshan Chemical Industries Ltd. (370.00, -3.86%).

Kalpataru Power Transmissions Ltd. (531.65, 2.44%) was trading at 23.8 times of weekly average. V-Guard Industries Ltd. (260.00, 4.29%) and Jubilant Pharmova Ltd. (406.00, 4.54%) were trading with volumes 17.6 and 13.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

34 stocks overperformed with 52-week highs, while 3 stocks hit their 52-week lows.

Stocks touching their year highs included - Amara Raja Batteries Ltd. (658.95, -0.70%), Ambuja Cements Ltd. (581.00, -1.15%) and Axis Bank Ltd. (933.70, -0.60%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (454.00, -1.06%) and Sudarshan Chemical Industries Ltd. (370.00, -3.86%).

9 stocks climbed above their 200 day SMA including Jubilant Pharmova Ltd. (406.00, 4.54%) and Marico Ltd. (523.75, 2.60%). 17 stocks slipped below their 200 SMA including HCL Technologies Ltd. (1,027.50, -6.71%) and Mahindra Logistics Ltd. (472.95, -2.97%).