Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 closing above the 18,100 mark. European stocks traded higher than their previous closing levels. India’s forex reserves fall after rising for five straight weeks. Foreign exchange reserves fall by $ 571 million to $ 563.5 billion in the week ending December 16. Major Asian indices trade in the green, taking cues from the US indices’ futures, which are trading higher. Several global markets were closed due holiday on Monday. Crude oil prices traded marginally higher as traders continue to weigh the falling demand in China due to rising Covid cases with supply concerns in the US.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Auto closed higher than Monday’s levels. Nifty IT closed in the green, taking cues from the Nasdaq 100 futures, which is trading higher.

Nifty 50 closed at 18,132.30 (117.7, 0.7%) , BSE Sensex closed at 60,927.43 (361.0, 0.6%) while the broader Nifty 500 closed at 15,418.35 (119.8, 0.8%)

Market breadth is ticking up strongly. Of the 1,933 stocks traded today, 1,493 showed gains, and 398 showed losses.

• Relative strength index (RSI) indicates that Abbott India is in the overbought zone.

• The Central government is considering removing the 2.5% basic customs duty on manganese and chrome ores. It will help steel plants deal with the supply shortage of raw materials. The Nifty Metal index rises 4.2% in trade today.

  #ETNOWExclusive | Steel sector may get relief in the Union budget. Basic custom duty on and chrome ore may be removed @priyadarshi108 #Steel #CustomDuty #Manganese pic.twitter.com/4lNcTmedAM

  — ET NOW (@ETNOWlive) December 27, 2022

• Axis Direct maintains its ‘Buy’ rating on JK Cement with a target price of Rs 3,350. This indicates an upside of 10.9%. The brokerage believes the firm’s acquisition of Acro Paint will enable it to expand its product portfolio and market footprint in the coming quarters. It expects the company to leverage its robust dealer network and strong market presence to augment the paint segment. The brokerage anticipates the company’s net profit to grow at a CAGR of 22.6%.

• Larsen & Toubro is rising as its power & transmission business wins multiple orders worth Rs 1,000-2,500 crore. In India, the company gets orders to build a 90 MW floating solar photovoltaic plant at the Omkareshwar dam in Madhya Pradesh and develop distribution infrastructure in Uttar Pradesh. In the international market, the projects involve the development of transmission lines and a substation.

• Radiant Cash Management’s Rs 387.9 crore IPO gets bids for 46% of the available 2.7 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 20% of the available 1.37 crore shares on offer.

• Capacit’e Infraprojects is rising after winning a repeat order worth Rs 625 crore from the Saifee Burhani Upliftment Trust. The project is for the construction of core and shell work in Mumbai. The company shows up in a screener of stocks with improving cash flow and a strong durability score.

• Analysts are bullish on ICICI Bank, Larsen & Toubro and Mahindra & Mahindra with a broker recommendation consensus of 'Strong Buy' on each of the stocks.

• Fertilizers, Cement & Construction and Metals & Mining sectors rise more than 30% in the past 180 days.

• Motilal Oswal initiates coverage on Poonawalla Fincorp with a 'Buy' rating and a target price of Rs 350. This indicates a potential upside of 42%. The brokerage believes that the company will earn from its fee income and operating cost ratios and improve return on equity (RoE). It estimates the company's asset under management (AUM) to grow at a CAGR of 37% over FY22-25.

  Midcap Spotlight | @poonawallafinco rallies nearly 14% after @MotilalOswalLtd initiates coverage on the stock with a Buy rating. In our special segment Midcap Spotlight, @kothariabhishek tells us why brokerage is bullish on the NBFC. pic.twitter.com/ahtX8GeRtW

  — CNBC-TV18 (@CNBCTV18News) December 26, 2022

• Central Bank of India acquires the remaining 35.6% stake in Cent Bank Home Finance from the National Housing Bank, Specified Undertaking of Unit Trust of India and HUDC.

• Deepak Fertilisers & Petrochemicals Corp falls in a volatile market today. However, the stock ranks high in Trendlyne Checklist, Durability and Valuation scores. The stock is trading below its historical averages and is in the PE Buy Zone.

• Sugar stocks like Uttam Sugar Mills, Dhampur Bio Organics, Shree Renuka Sugars and Triveni Engineering & Industries are rising in trade in anticipation of an increase in export quota by the Centre.

• Venkatraman Narayanan, Managing Director and Chief Financial Officer (CFO) of Happiest Minds Tech, says that there will be a marginal reduction in revenue in Q3FY23 owing to fewer working days. The company is on track to meet its revenue guidance of 25% for FY23 and long-term margin guidance of 22-24%.

  #OnCNBCTV18 | Q3 will see slight reduction in revenue due to fewer working days. Clients are reprioritising tech spends, no cancellations. See a decline in attrition rate, says Venkatraman Narayanan of Happiest Minds Tech pic.twitter.com/2W1XUjrgFN

  — CNBC-TV18 (@CNBCTV18Live) December 27, 2022

• Time Technoplast surges as it receives repeat order worth approx Rs 75 crore from Adani Total Gas for the supply of CNG cascades made from type-IV composite cylinders. The delivery of the cascades will begin in January 2023.

• Laurus Labs is falling after announcing that a flash fire occurred in its API manufacturing plant in Visakhapatnam, Andhra Pradesh. Four employees die in the fire incident and one is undergoing treatment. The company estimates no material impact on its operations.

• Metal stocks like National Aluminium, Jindal Steel & Power, Hindustan Copper and Steel Authority of India (SAIL) are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

• Rohan Verma, CEO of MapmyIndia, says that the core business margin stands at 55%, and the company continues to invest in future growth opportunities. It plans to cut down marketing expenses to meet its goals in FY23.

  #OnCNBCTV18 | Core business margin is at 55%, company is investing for significant growth in future. We have operating leverage in business with strong contribution margin. Metaverse drones and real estate opportunity is huge, says Rohan Verma (@_rohanverma) of @MapmyIndia pic.twitter.com/EVV3nW9qqM

  — CNBC-TV18 (@CNBCTV18Live) December 27, 2022

• Oil exploration & production and refineries stocks rise as brent crude inches towards the $85 mark. Stocks like Oil and Natural Gas Corp, Oil India, Mangalore Refinery and Petroleum are trading in the green.

• Noida Authority sends a notice to DLF to pay Rs 325 crore as compensation to the owner of the land where the Mall of India is constructed. The company, however, is waiting to receive a communication from the authorities. The stock is trading flat in a rising market.

• NTPC signs an MoU with Tecnimont, the Indian arm of Italy-based Maire Tecnimont Group, to evaluate and explore the possibility of commercial-scale green methanol production in India. The stock shows up in a screener for companies with improving cash flow from operations for the past two years.

Riding High:

Largecap and midcap gainers today include Jindal Steel & Power Ltd. (575.95, 9.01%), Indian Overseas Bank (33.30, 6.73%) and Hindalco Industries Ltd. (471.00, 6.33%).

Downers:

Largecap and midcap losers today include Varun Beverages Ltd. (1,318.90, -2.50%), Crompton Greaves Consumer Electricals Ltd. (338.45, -1.87%) and Laurus Labs Ltd. (374.70, -1.85%).

Volume Shockers

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

Top high volume gainers on BSE included KIOCL Ltd. (212.60, 10.38%), Jindal Steel & Power Ltd. (575.95, 9.01%) and CCL Products India Ltd. (561.65, 8.45%).

TTK Prestige Ltd. (817.30, 6.56%) was trading at 26.4 times of weekly average. Privi Speciality Chemicals Ltd. (1,171.90, 8.00%) and HEG Ltd. (1,041.25, 8.11%) were trading with volumes 9.2 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks overperformed with 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - CCL Products India Ltd. (561.65, 8.45%) and Jindal Steel & Power Ltd. (575.95, 9.01%).

Stock making new 52 weeks lows included - Laurus Labs Ltd. (374.70, -1.85%).

45 stocks climbed above their 200 day SMA including KIOCL Ltd. (212.60, 10.38%) and Hindalco Industries Ltd. (471.00, 6.33%). 7 stocks slipped below their 200 SMA including Ajanta Pharma Ltd. (1,165.35, -1.77%) and Jubilant Pharmova Ltd. (376.70, -0.91%).