Trendlyne Analysis

Nifty 50 fell nearly 150 points and closed below the 18,300 mark on a volatile day of trade. European stocks followed the global trend and traded lower than Thursday’s levels. India's merchandise exports recorded a flat growth YoY at $ 31.99 billion in November, with the merchandise trade deficit narrowing marginally to $23.89 billion from $26.91 billion in the previous month.

Most major Asian indices closed in the red, in line with the US indices, which closed sharply lower on Thursday. US stock fell as investors digested the US Fed’s hawkish commentary. In addition, US retail sales fell more than expected in November, as the holiday season kicked off. The European Central Bank (ECB) raised rates by half a percentage point, its fourth successive hike on Thursday, Brent crude oil futures traded lower but is set for a weekly gain amid supply issues.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Pharma closed lower than Thursday’s levels. Nifty IT closed in the red, taking cues from the tech-heavy Nasdaq 100 index, which fell over 3.3% on Thursday.

Nifty 50 closed at 18,269.00 (-145.9, -0.8%), BSE Sensex closed at 61,337.81 (-461.2, -0.8%) while the broader Nifty 500 closed at 15,636.35 (-147.5, -0.9%)

Market breadth is highly negative. Of the 1,942 stocks traded today, 615 were on the uptrend, and 1,267 went down.

• Relative strength index (RSI) indicates that stocks like Central Bank of India, Indian Overseas Bank, RBL Bank and General Insurance Corp of India are in the overbought zone.

• Ashok Leyland beats Escorts Kubota in YoY and QoQ revenue and profit growth, MF holdings and broker average rating. But lags in PE ratio, annual RoE and one-year stock price returns.

• KFin Technologies, a financial services provider, opens for IPO subscription on Monday. The price band for the issue is Rs 347-366 per share and is entirely an offer for sale for Rs 1,500 crore.

• Raymond and Mahindra CIE Automotive hit their all-time highs of Rs 1,644 and Rs 334 respectively. Raymond rises for three consecutive sessions, while the other trades higher for two sessions.

• Mutual funds trim stakes in Gujarat Gas, HDFC Life Insurance and ICICI Bank in the past month.

• Power stocks like ABB India, Adani Transmission, JSW Energy, Siemens and Tata Power are falling in trade. All constituents of the broader sectoral index BSE Power are trading in the red.

• GMM Pfaudler falls over 18% in the early trade today. Reports suggest that the promoter entity likely sold 1.34 crore shares (29.88% stake) worth Rs 2,278 crore in the company via a block deal.

  GMM Pfaudler shares plunged more than 18% during the early trade on Friday, recording its biggest percentage fall in five yearshttps://t.co/nU0UDfSN8Q

  — ETMarkets (@ETMarkets) December 16, 2022

• Dilip Buildcon wins an order worth Rs 976 crore from the National Highways Authority of India for four laning of the Mehgama-Hansdila section of NH-133 in Jharkhand.

• Sugar stocks like Ugar Sugar Works, Bajaj Hindusthan Sugar, Dalmia Bharat Sugar and Industries, and Dhampur Sugar Mills are rising in trade as reports suggest that government may hike sugar export quota.

• Sunil Bohra, Executive Director and Group CFO of UNO Minda, says that the company targets an EBITDA margin of 11-12% in FY23 and will improve revenues by 1.5X of the industry’s growth. He adds that the company aims to outperform its industry in the next 8-10 years.

  #OnCNBCTV18 | Target EBITDA margin of 11-12% in FY23, compared with 10.3% in FY22, grow our revenues by 1.5x of industry growth rate. Will outperform industry in 8-10 years, says Sunil Bohra of Uno Minda pic.twitter.com/n0mFiv4I2T

  — CNBC-TV18 (@CNBCTV18Live) December 16, 2022

• CAMS rises more than 1.5% in trade in a weak market. The stock is trading above its second resistance or R2 level. It shows up in a screener of stocks with improving RoA for the past two years. The stock ranks medium on the Trendlyne checklist score.

• Patel Engineering is rising as its board approves raising funds through a rights issue. It plans to raise Rs 350 crore by allotting equity shares with a face value of Rs 1 each to eligible shareholders of the company.

• Public holder Kravis Investment Partners sells a 1.29% stake (3.6 crore shares) in FSN E-commerce Ventures (Nykaa) for Rs 629.06 crore in a bulk deal.

• India’s November merchandise exports grew marginally to $32 billion from $29.8 billion in October. Imports stood at $55.9 billion and the trade deficit in November narrowed to $23.9 billion.

  India's exports on Thursday recorded a flat growth at USD 31.99 billion in November as against USD 31.8 billion in the same month last year.
  https://t.co/RkUbzoqE57

  — Economic Times (@EconomicTimes) December 15, 2022

• Promoter Sapphire Foods Mauritius sells a 6.14% stake (39 lakh shares) in Sapphire Foods for Rs 525.5 crore in a bulk deal. Another holder WWD Ruby sells a 4.5% stake in Sapphire Foods for Rs 385.1 crore. The Government of Singapore, PI Opportunities Fund I and Mirae Asset Mutual Funds, among others, pick up the shares.

• Engineers India is rising as it secures an order from Mundra Solar Technology, a group company of Adani Enterprises. The order pertains to the production of 30,000 metric tonnes per annum (MTPA) of polysilicon and 500 MTPA of monosilane. The stock shows up in a screener for companies with no debt.

• AIA Engineering acquires a 26% stake in Clean Max Meridus for setting up a Hybrid (solar and wind) Power Plant in Gujarat. AIA Engineering shows up in a screener of stocks with improving book value for the past two years.

• The Centre slashes the windfall tax on locally produced crude oil to Rs 1,700 per tonne from Rs 4,900 earlier. It cuts the windfall tax on the export of diesel to Rs 5 per litre (including Rs 1.5 as road infrastructure cess) from Rs 8. The windfall tax on aviation turbine fuel (ATF) falls to Rs 1.5 per litre from Rs 5 earlier.

  ????#BREAKING | Government cuts windfall tax on locally produced oil to ? 1,700 per tonne from ? 4,900 per tonne https://t.co/UETKg2QDzs pic.twitter.com/BSNI10mpRo

  — NDTV (@ndtv) December 16, 2022

• Porinju Veliyath buys a 0.5% stake in Max India for approx Rs 2.3 crore in a bulk deal on Thursday.

• IDBI Bank files an insolvency plea against Zee Entertainment (ZEEL) to recover dues worth Rs 149.6 crore. ZEEL has, however, challenged the plea with the National Company Law Tribunal bench.

• Hindustan Foods is acquiring a pharmaceutical factory from Reckitt Benckiser Health in Himachal Pradesh to expand its healthcare and wellness division. The transaction is worth Rs 156 crore and likely to be completed by H2FY23. The company shows up in a screener of stocks with improving annual profits for the past two years.

Riding High:

Largecap and midcap gainers today include Bayer Cropscience Ltd. (4,830.20, 3.84%), Procter & Gamble Hygiene & Healthcare Ltd. (14,400.00, 3.27%) and Tube Investments of India Ltd. (2,921.85, 3.18%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (2,753.90, -7.63%), Union Bank of India (84.70, -5.94%) and General Insurance Corporation of India (166.65, -5.90%).

Volume Rockets

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

Top high volume gainers on BSE included EPL Ltd. (191.05, 13.86%), Kalyan Jewellers India Ltd. (125.45, 5.46%) and Sterlite Technologies Ltd. (186.65, 5.24%).

Top high volume losers on BSE were GMM Pfaudler Ltd. (1,644.50, -14.56%), Medplus Health Services Ltd. (649.60, -6.31%) and Bharat Electronics Ltd. (99.45, -3.68%).

Dr. Reddy's Laboratories Ltd. (4,309.10, -3.58%) was trading at 12.7 times of weekly average. Deepak Fertilisers & Petrochemicals Corporation Ltd. (820.65, 1.10%) and Krishna Institute of Medical Sciences Ltd. (1,451.80, 2.32%) were trading with volumes 12.2 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks made 52-week highs, while 5 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (358.20, 3.21%), Apollo Tyres Ltd. (323.05, 0.14%) and Indian Overseas Bank (33.40, -3.88%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (441.85, -1.13%) and SIS Ltd. (387.70, -0.46%).

6 stocks climbed above their 200 day SMA including Sterlite Technologies Ltd. (186.65, 5.24%) and Procter & Gamble Hygiene & Healthcare Ltd. (14,400.00, 3.27%). 29 stocks slipped below their 200 SMA including GMM Pfaudler Ltd. (1,644.50, -14.56%) and Avenue Supermarts Ltd. (3,990.00, -4.59%).