Trendlyne Analysis

Nifty 50 fell over 300 points and closed below its 100-day simple moving average with the volatility index, India VIX, rising sharply. European induced traded above Thursday’s levels. However, major Asian indices closed in the red, in line with the US indices, which closed lower on Thursday. US indices fell as better-than-expected US economic data supported the US Fed’s case for more ongoing rate increases. The tech-heavy Nasdaq index fell 2.5% led by heavyweights Tesla and Nvidia which declined over 7%. Tesla has lost over 33% in December and is on course for its worst-ever month. Brent crude oil futures traded higher after giving up its gains and closing flat on Thursday.

Nifty Midcap 100 and Nifty Smallcap 100 closed deep in the red, following the benchmark index. Nifty Auto and Nifty Bank closed lower than Thursday’s levels. Nifty IT closed in the red, taking cues from the tech-heavy Nasdaq 100, which closed deep in the red on Thursday.

Nifty 50 closed at 17,806.80 (-320.6, -1.8%), BSE Sensex closed at 59,845.29 (-980.9, -1.6%) while the broader Nifty 500 closed at 15,046.00 (-385.5, -2.5%)

Market breadth is overwhelmingly negative. Of the 1,948 stocks traded today, 129 were in the positive territory and 1,809 were negative.

• Gujarat Gas beats Indraprastha Gas in YoY & QoQ net profit growth, MF holdings and annual RoE & RoCE. But lags in YoY & QoQ revenue growth and broker average target upside.

• Hardware technology and equipment, telecommunications equipment and forest materials sectors fall by more than 11% over the week.

• According to Trendlyne's FII dashboard, foreign institutional investors pulled out a total of Rs 156.2 crore from the equity market over the past week. However, index options received the highest inflow of Rs 21,689.4 crore from foreign investors.

• Realty company Brigade Enterprises is rising in a weak market. The company shows up in a screener of stocks with improving cash flow from operations for the past two years. Trendlyne’s consensus recommendation from 10 analysts on the stock is ‘Buy’.

• Goldman Sacs maintains its ‘Neutral’ rating on Bandhan Bank with a target price of Rs 297. The brokerage expects an RoE of 20% and an RoA of 2.7% during FY23-25. The bank's pre-provisioning operating profit (PPOP) is likely to grow 14% CAGR over FY22-25.

  #CNBCTV18Market | Sale of written-down portfolio a positive surprise, RoA normalisation & diversification are keys, GS on Bandhan Bank pic.twitter.com/h2OuNXynMp

  — CNBC-TV18 (@CNBCTV18Live) December 23, 2022

• Spandana Sphoorty's board of directors approves the sale of its stressed loans worth Rs 323.1 crore to an asset reconstruction company (ARC). The company receives a binding bid of Rs 95 crore from an undisclosed ARC.

• Indus Towers appoints Prachur Sah as Additional Director as well as Managing Director and Chief Executive Officer of the Company with effect from January 3 for a period of five years, subject to the approval of shareholders.

• India's FII inflows improve to $1.1 billion in December. The capital goods sector gets the highest inflow of $395 million, while the energy sector sees the largest outflow of $270 million.

  #MarketsWithETNOW | FII flows remain net positive in the first half of December with capital goods sector seeing the largest inflows; @soumeet_sarkar brings us more details. Listen in #FundFlow #FII pic.twitter.com/53GhSEqFxH

  — ET NOW (@ETNOWlive) December 23, 2022

• Vedanta gets intimation from the Directorate of Mines & Geology, government of Goa, that it has been declared as the preferred bidder in the e-auction of Block-1 Bicholim mineral block. The mineral block has resources of 84.9 million tonnes.

• Fertilizers stocks like Chambal Fertilisers & Chemicals, Gujarat State Fertilizer & Chemicals and The Fertilisers and Chemicals Travancore are trading lower as reports suggest officials are considering cutting the fertilizer subsidy for FY24 to reduce fiscal pressure.

• Metal stocks like Hindalco Industries, Tata Steel and National Aluminium fall more than 3% in trade. All constituents of the broader Nifty Metal index are trading in the red.

• Kishor Patil, Co-founder, CEO and MD of KPIT Technologies, says that the company maintains a revenue growth guidance of 31-32% and margin guidance of 18-19% for FY23. The stock is down by over 5% in trade today.

  #OnCNBCTV18 | Able to maintain premium pricing over competitors due to strong position. Investments by T25 clients in tech & software budgets are growing 8-10%, says Kishor Patil of KPIT Tech pic.twitter.com/cIuz9ze0MJ

  — CNBC-TV18 (@CNBCTV18Live) December 23, 2022

• ICICI Sec maintains its ‘Buy’ rating on Jubilant Foodworks with a target price of Rs 720, indicating an upside of 38.2%. The brokerage expects the company to make market share gains in the coming quarters given its focus on customer convenience, reducing delivery time and superior execution. It estimates the firm’s revenue to grow at a CAGR of 20.9% over FY22-24.

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

• Jefferies initiates coverage on Global Health (Medanta) with a ‘Buy’ rating and a target price of Rs 550. The brokerage says that the healthcare provider has strong brand equity among its customers.

  #BrokerageRadar | @Jefferies initiates coverage on Global Health with a 'Buy' rating; Pankaj Poddar brings us more details from the brokerage note. Listen in #StockMarket #StocksToWatch pic.twitter.com/Rh7LvQdGxQ

  — ET NOW (@ETNOWlive) December 23, 2022

• RailTel Corp of India bags a contract worth Rs 98.6 crore from Webel Technology. The order pertains to enhancing the capacity of the West Bengal State Data Centre in Monibhandar, Kolkata. The stock shows up in a screener for companies with book value per share improving over the past two years.

• Abans Holdings’ shares list at a 1.1% premium to the issue price of Rs 270 on its debut on the bourses. The 345.6 crore IPO was subscribed for 1.1X the total shares on offer.

• Landmark Cars’ shares list at a 6.9% discount to the issue price of Rs 506 on its debut on the bourses. The 552 crore IPO was subscribed for 3.06X the total shares on offer.

• Rail Vikas Nigam wins an order worth Rs 198.93 crore from Gujarat Metro Rail Corp for the construction of Bhesan depot cum workshop.

• Godrej Properties signs an agreement to develop premium residential projects in Gurugram on a 14.27-acre land. The estimated revenue from this project is nearly Rs 3,000 crore. Gaurav Pandey, MD & CEO of Godrej Properties, says, "This project will allow us to increase our market share in Gurugram over the next several years and deepen our presence across key real estate micro-markets."

• Reliance Industries' arm Reliance Strategic Business Ventures acquires a 23.3% stake in the US-based robotics company, Exyn Technologies, for $25 million (approximately Rs 206.8 crore). Another subsidiary of the company, Reliance Projects and Property Management Services acquires a 100% stake in Reliance Infratel for Rs 3,720 crore. Through this deal, the company will acquire 43,000 mobile towers across the country.

Riding High:

Largecap and midcap gainers today include Procter & Gamble Hygiene & Healthcare Ltd. (14,140.00, 1.03%), Vedant Fashions Ltd. (1,310.00, 1.02%) and Syngene International Ltd. (575.30, 0.10%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (26.20, -14.66%), Union Bank of India (67.55, -11.29%) and General Insurance Corporation of India (156.00, -11.21%).

Volume Shockers

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

Top high volume gainers on BSE included Shilpa Medicare Ltd. (288.90, 7.74%), Brigade Enterprises Ltd. (471.20, 3.95%) and Suven Pharmaceuticals Ltd. (496.05, 2.57%).

Top high volume losers on BSE were AstraZeneca Pharma India Ltd. (3,304.00, -3.22%), Aditya Birla Sun Life AMC Ltd. (436.50, -3.12%) and Motherson Sumi Wiring India Ltd. (55.90, -2.61%).

Granules India Ltd. (328.35, 0.34%) was trading at 4.4 times of weekly average. Lupin Ltd. (756.75, -1.25%) and Aarti Drugs Ltd. (455.05, 1.78%) were trading with volumes 3.8 and 3.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit its 52-week high, while 31 stocks hit their 52-week lows.

Stock touching their year highs included - Abbott India Ltd. (21,797.25, -0.21%).

Stocks making new 52 weeks lows included - Greaves Cotton Ltd. (126.15, -4.47%) and Havells India Ltd. (1,100.00, -3.36%).

3 stocks climbed above their 200 day SMA including Suven Pharmaceuticals Ltd. (496.05, 2.57%) and Ajanta Pharma Ltd. (1,235.00, 0.62%). 71 stocks slipped below their 200 SMA including Infibeam Avenues Ltd. (14.65, -11.75%) and Easy Trip Planners Ltd. (45.55, -10.77%).