Trendlyne Analysis

Indian indices recovered from their day’s low and closed flat on a volatile day of trade. European stocks followed the global trend and traded lower than Friday's levels. UK’s GDP rose for the first time in four months in October. The Office for National Statistics reported that UK’s GDP rose 0.5% in October 2022, following a fall of 0.6% in September 2022.

Major Asian indices closed lower, in line with the US indices, which closed in the red on Friday. US stocks fell as investors looked ahead to the expected 50 basis points rate hike by the US Fed to be announced later this week. The tech-heavy Nasdaq 100 index fell 0.6% while the Dow Jones closed 0.9% lower on Friday. US Treasury Secretary Janet Yellen expects US inflation to reduce substantially in 2023, barring an unexpected shock. Brent crude oil futures traded lower after plunging over 10% last week as slowing global economic growth hurt crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing flat. Nifty Bank and Nifty Energy closed higher than Friday's levels. Nifty IT closed in the red after falling over 6% last week, taking cues from the Nasdaq 100, which lost over 3.5% last week.

Nifty 50 closed at 18,497.15 (0.6, 0%), BSE Sensex closed at 62,130.57 (-51.1, -0.1%) while the broader Nifty 500 closed at 15,828.00 (15.3, 0.1%)

Market breadth is in the green. Of the 1,965 stocks traded today, 1,026 showed gains, and 877 showed losses.

• Infosys sees a short buildup in its December 29 future series as its open interest rises 11.1% with a put-call ratio of 0.41.

• Honeywell Automation India is rising as Nomura expects a recovery in the services and exports segment to improve the company’s margins in H2FY23, according to reports. The brokerage has a ‘Buy’ rating on the stock and revised the target price to Rs 50,642.

• Oil and Natural Gas Corp (ONGC) is rising as it plans to invest Rs 2,150 crore to drill 53 exploratory wells in Andhra Pradesh, according to reports. The wells will be dug in the Godavari KG basin block and the Cuddapah basin block. ONGC currently produces 700 tonnes of oil from the KG basin.

• Laurus Labs and Rossari Biotech hit their 52-week lows of Rs 402.6 and Rs 648 respectively. Laurus Labs falls for six consecutive sessions, while Rossari Biotech trades lower for three sessions.

• Pradeep Kumar Patel, VP of Morbi Ceramic Association, expects exports to increase to 40-50% by next year. He adds that most firms prefer natural gas over propane and if there are price cuts, companies would shift back to using natural gas.

  #OnCNBCTV18 | There has been a ?5/scm #price cut by #GujaratGas. 30-35% of #Morbi's total #production is exported, will increase to 40-45% next year, says Pradeep Kumar Patel of Morbi Ceramic Association pic.twitter.com/Ht8TvyAD48

  — CNBC-TV18 (@CNBCTV18Live) December 12, 2022

• ICICI Direct maintains ‘Buy’ on Bharat Forge with a target price upside of 22%. The brokerage expects its defence segment to bring in more orders from the Centre in the coming years. It expects the EBITDA margin to increase to 19% by FY25E.

• Sula Vineyards’ Rs 960.3 crore IPO gets bids for 28% of the available 1.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 48% of the available 94.1 lakh shares on offer. The IPO is entirely an offer for sale of Rs 960.3 crore.

• Glenmark Pharmaceuticals is falling as the USFDA issues a warning against the company for manufacturing lapses like failure to establish required laboratory control mechanisms at its plant in Goa, according to reports.

• Oil and gas stocks like Hindustan Petroleum Corp, GAIL (India), Indian Oil Corp and Oil And Natural Gas Corp are rising in trade. The broader sectoral index BSE Oil & Gas is also trading in the green.

• YES Bank touches a 52-week high and gains more than 20% in one week. The rise comes after the bank got Reserve Bank of India's approval to raise funds from Carlyle Group and Verventa Holdings. Reports suggest this will improve the bank’s asset quality.

• Punjab National Bank is rising as JP Morgan upgrades its rating on the stock to ‘Overweight’ from ‘Underweight’ and raises the target price to Rs 72. The brokerage says that the bank’s net slippages have gone down to negative and there is minimal stress in corporate loans.

  #BrokerageRadar | @jpmorgan has upgraded @pnbindia from a long standing Underweight to an Overweight rating. @Ashesha_A get us more details on the brokerage note. Listen in#StockMarket #StocksToWatch pic.twitter.com/KfDK9nVPEZ

  — ET NOW (@ETNOWlive) December 12, 2022

• One97 Communications (Paytm) loan disbursals grow 150% YoY to 68 lakhs in November. The value of loans disbursed increases by 374% YoY. Over 55 lakh merchants now pay subscription for payment devices, a rise from 16 lakh in November 2021. The stock shows up in a screener with improving cash flow from operations for the past two years.

• Va Tech Wabag's European arm wins repeat order worth Rs 260 crore from Purolite for industrial wastewater treatment in Romania.

• Inox Leasing and Finance, promoter of Gujarat Fluorochemicals, sells a 0.3% stake in the company for approx Rs 96.9 crore. It now owns a 52.61% stake.

• Indian rupee falls to 82.60 from the previous close of 82.27 against the US dollar in early trade today.

  #RupeeCheck | #Rupee opens at 82.60/$ vs Friday’s close of 82.27/$ pic.twitter.com/12LJQf6tS5

  — CNBC-TV18 (@CNBCTV18Live) December 12, 2022

• Ashish Kacholia buys a 0.83% stake in Aditya Vision for approx Rs 14.7 crore in a bulk deal on Friday.

• Zydus Lifesciences gets US FDA approval to market silodosin and pregabalin capsules. Silodosin will be used to treat enlarged prostrate glands and pregabalin for nerve damage caused by diabetes. According to IQVIA, silodosin has a market size of $14 million, while pregabalin’s sales were at $242 million for 12 months ending September.

• Nalin Singhal, Managing Director and Chairman of Bharat Heavy Electricals, says that the pressure on margins is likely to continue over the next two years. He says Q2FY23 margins were hit because of high commodity prices. The company has also signed a memorandum of understanding with Coal India for its ammonium nitrate plant.

  #OnCNBCTV18 | #Margin pressure will continue for the next 2 years. Not expected to get back to 40% gross margin level. Signed MoU with Coal India for ammonium nitrate plant, says Nalin Shinghal of #BHEL pic.twitter.com/3gg1a4mM4P

  — CNBC-TV18 (@CNBCTV18Live) December 12, 2022

• Uniparts India’s shares list at a 0.3% discount to the issue price of Rs 577 on its debut on the bourses. The 835.6 crore IPO was subscribed for 25.3X the total shares on offer.

• Sula Vineyards raises Rs 288.1 crore from anchor investors ahead of its IPO by allotting 80.7 lakh shares at Rs 357 per share. Investors include Goldman Sachs, New York State Teachers Retirement System and HDFC Life Insurance.

• PSP Projects wins an order from Nila Spaces worth Rs 121.5 crore for constructing the core and shell of high-rise residential towers at GIFT city, Gandhinagar. The total order inflow for FY23 stands at Rs 1,833.09 crore. The stock shows up in a screener of companies with low debt.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (33.40, 7.57%), YES Bank Ltd. (21.10, 7.11%) and Hindustan Petroleum Corporation Ltd. (251.90, 4.96%).

Downers:

Largecap and midcap losers today include Godrej Consumer Products Ltd. (895.35, -3.06%), One97 Communications Ltd. (528.75, -2.91%) and Dixon Technologies (India) Ltd. (3,988.85, -2.80%).

Volume Rockets

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

Top high volume gainers on BSE included Hitachi Energy India Ltd. (3,320.00, 7.89%), IRB Infrastructure Developers Ltd. (299.45, 5.74%) and Supreme Industries Ltd. (2,536.30, 4.76%).

Top high volume losers on BSE were Sun Pharma Advanced Research Company Ltd. (220.75, -6.26%), Metropolis Healthcare Ltd. (1,368.75, -3.40%) and Fine Organic Industries Ltd. (5,816.35, -3.19%).

Cholamandalam Financial Holdings Ltd. (594.90, -1.30%) was trading at 6.4 times of weekly average. GlaxoSmithKline Pharmaceuticals Ltd. (1,330.45, -0.09%) and Birla Corporation Ltd. (1,007.45, 2.39%) were trading with volumes 5.2 and 4.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks took off, crossing 52-week highs, while 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Apollo Tyres Ltd. (323.10, 2.26%), IRB Infrastructure Developers Ltd. (299.45, 5.74%) and Lakshmi Machine Works Ltd. (13,710.00, 0.27%).

Stocks making new 52 weeks lows included - Laurus Labs Ltd. (404.25, -2.05%) and Rossari Biotech Ltd. (772.00, -1.10%).

14 stocks climbed above their 200 day SMA including Hitachi Energy India Ltd. (3,320.00, 7.89%) and Chemplast Sanmar Ltd. (492.00, 7.38%). 17 stocks slipped below their 200 SMA including Sun Pharma Advanced Research Company Ltd. (220.75, -6.26%) and Dixon Technologies (India) Ltd. (3,988.85, -2.80%).