Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 closing just below the 18,200 mark. European indices traded higher than Friday’s levels. Goods and Services Tax (GST) collections grew 15% to over Rs 1.49 lakh crore in December 2022, indicating improved manufacturing output and consumer demand, along with better compliance. India’s manufacturing PMI rose the most in two years to 57.8 in December 2022 compared to 55.7 in November 2022 due to new orders and output growth.

US stocks closed marginally lower on Friday, the last trading session of 2022. The tech-heavy Nasdaq 100 closed 0.1% lower while the Dow Jones fell 0.2%. US indices recorded their worst yearly fall since 2008 amid high inflation and the possibility of a recession induced by high Fed rate hikes. S&P 500 lost around 20% of its value in 2022 while the Nasdaq 100 fell around 30%. Crude oil prices rise over 2.7% on Friday after falling for two consecutive trading sessions.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Energy closed higher than Friday’s levels. Nifty IT closed higher, despite the tech-heavy Nasdaq 100 index closing flat on Friday.

Nifty 50 closed at 18,197.45 (92.2, 0.5%), BSE Sensex closed at 61,167.79 (327.1, 0.5%) while the broader Nifty 500 closed at 15,523.65 (74.8, 0.5%)

Market breadth is highly positive. Of the 1,977 stocks traded today, 1,294 showed gains, and 625 showed losses.

• Tata Steel sees a long buildup in its January 25 future series as its open interest rises 16.0% with a put-call ratio of 0.86.

• TVS Motor Co is falling as its December 2022 wholesales decline 3.6% YoY due to a fall in motorcycle wholesales. Hero MotoCorp’s December 2022 wholesales also fall marginally by 0.1% YoY due to a 5.3% YoY fall in motorcycle wholesales. Both companies see a rise in scooter wholesales by 14% and 109% YoY respectively.

• JMC Projects (India) rises and Kalpataru Power Transmission hits an all-time high of Rs 592.5 per share as the companies fix January 11 as the record date to determine the shareholders to whom the shares of KPTL would be allotted.

• The volume of transactions on India's digital payments platform, Unified Payments Interface (UPI), increases 71% YoY to 782 crore in December 2022. The value of transactions is up 55% YoY to Rs 12.8 lakh crore.

  In the calendar year 2022, UPI processed over 74 billion transactions, worth Rs 125.94 trillion, NPCI data showed https://t.co/Gi9hYYmtBl

  — Business Standard (@bsindia) January 2, 2023

• Sah Polymers’ Rs 66.3 crore IPO gets bids for 1.59X the available 56.1 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 5.3X the available 10.2 lakh shares on offer.

• Blue Dart Express, Cera Sanitaryware, Persistent Systems and AstraZeneca Pharma India trade above their second resistance or R2 level as the markets trade higher.

• Satia Industries is rising as it bags three orders to supply 17,000 tonnes of paper for Rs 200 crore. The contracts pertain to supplying paper for printing textbooks. The stock shows up in a screener for comapnies with increasing net profit sequentially for the past four quarters.

• Bharat Forge is rising as its subsidiary, JS Auto Cast Foundry India, acquires a special economic zone (SEZ) unit in Erode from Indo Shell Mould. The SEZ unit has a capacity of 42,000 MTPA and supplies fully machined critical castings to customers in the automotive industry. This takes the company's total capacity to 1.4 lakh MTPA.

• ICICI Securities downgrades its rating on Multi Commodity Exchange of India (MCX) to ‘Add’ from ‘Buy’ and reduces its target price to Rs 1,669 from Rs 1,795. This indicates an upside of 13.5%. The brokerage cites higher software costs and expensive valuations for revising its rating. However, it remains optimistic about the firm’s growth prospects due to MCX’s robust traction in options and dominant market share.

• Capacit'e Infraprojects is rising as it receives an order worth Rs 203 crore from Ashar Ventures to construct a 60-storied tower in Thane. It features in a screener of stocks with improving cash flow and good durability.

• Mahindra & Mahindra is rising as its December 2022 wholesales grow 45% YoY to 56,677 units, driven by a 62% YoY growth in sports utility vehicle wholesales. Maruti Suzuki’s December 2022 total wholesales fall 9% YoY to 1.39 lakh units due to a 21.2% YoY decline in mini & compact segment passenger vehicle wholesales.

• Metal stocks like Steel Authority of India, Tata Steel, Jindal Steel & Power and National Aluminium are rising in trade. The broader sectoral index BSE Metal is also trading in the green.

• Jefferies upgrades its rating on Tata Steel and Hindalco to a ‘Buy’ from ‘Hold’ and raises target prices to Rs 150 and Rs 600 respectively. The brokerage is positive on the Indian metal companies as Covid policies in China ease. This would increase the demand for metals globally. Meanwhile, it maintains its ‘Hold’ rating on Coal India and ‘Underperform’ on JSW Steel.

  After almost a year of cautious view, global brokerage Jefferies said it has turned positive on India metals. China has started to ease Covid policy and support its ailing property sector.https://t.co/0QgKtDV0v4

  — Mint (@livemint) January 2, 2023

• Indian Overseas Bank appoints Sanjay Vinayak Mudaliyar as Executive Director for a period of three years with effect from January 1.

• Canara Bank's Managing Director and Chief Executive Officer LV Prabhakar retires from the post with effect from December 31, 2022.

• India’s manufacturing PMI rises to 57.8 in December 2022, the highest in two years, due to growth in new orders and output. The PMI was 55.7 in November 2022.

  India's manufacturing industry ended 2022 on a solid footing as business conditions improved at the fastest rate in over two years. #PMI #Manufacturing #IndianEconomy #Business #economy https://t.co/78Hq0OTgTu

  — Business Standard (@bsindia) January 2, 2023

• Religare Enterprises is rising as its subsidiary, Religare Finvest, signs a settlement agreement with 16 of its outstanding lenders in accordance with the sanction letters received. The subsidiary will seek to exit from the corrective action plan (CAP) imposed by the Reserve Bank of India (RBI) and restart its lending business.

• NCC is surging as it bags multiple orders worth Rs 3,601 crore from state government agencies in December 2022. The company wins two orders in the water and electrical segment and one in the irrigation division. It features in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

• Investment Advisor Sandip Sabharwal expects domestically linked stocks in India to perform well during the first phase of 2023. He adds that capital expenditure continues to be the prominent theme for the year.

  #MarketsWithETNOW | What will be the standout trend for 2023? Here's what @sandipsabharwal had to say #StockMarket #StocksToWatch pic.twitter.com/FpvP41nRRK

  — ET NOW (@ETNOWlive) January 2, 2023

• HG Infra Engineering wins a project from the Delhi Metro Rail Corp for the design and construction of elevated viaducts and stations for Rs 398.6 crore. The estimated time to complete the project is 24 months. The stock is trading near its 52-week high.

• Adani Power extends the timeline to acquire thermal assets worth Rs 7,017 crore from DB Power till January 15.

• Bandhan Bank transfers its group and technical write-off loans worth Rs 8,897 crore to an asset reconstruction company for a consideration amount of Rs 801 crore. The bank shows up in a screener of bearish stocks having medium to low Trendlyne scores.

Riding High:

Largecap and midcap gainers today include Steel Authority of India (SAIL) Ltd. (88.95, 7.62%), Power Finance Corporation Ltd. (149.70, 6.06%) and Tata Steel Ltd. (119.25, 5.86%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (3,550.60, -3.85%), Dr. Lal Pathlabs Ltd. (2,200.15, -2.67%) and Bajaj Holdings & Investment Ltd. (5,607.15, -2.34%).

Volume Rockets

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

Top high volume gainers on BSE included NCC Ltd. (91.70, 9.30%), IRB Infrastructure Developers Ltd. (314.00, 7.96%) and Steel Authority of India (SAIL) Ltd. (88.95, 7.62%).

Top high volume losers on BSE were Multi Commodity Exchange of India Ltd. (1,457.70, -6.21%), 3M India Ltd. (21,535.00, -1.86%) and ICICI Securities Ltd. (494.75, -0.52%).

IFB Industries Ltd. (932.00, 3.36%) was trading at 33.9 times of weekly average. Bombay Burmah Trading Corporation Ltd. (935.00, 3.08%) and PNB Housing Finance Ltd. (573.15, 7.42%) were trading with volumes 4.7 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks overperformed with 52-week highs, while 4 stocks hit their 52-week lows.

Stocks touching their year highs included - Canara Bank (336.15, 0.86%), Jindal Steel & Power Ltd. (594.65, 2.42%) and Power Finance Corporation Ltd. (149.70, 6.06%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (434.80, -0.80%) and Ipca Laboratories Ltd. (836.70, -0.76%).

19 stocks climbed above their 200 day SMA including Rain Industries Ltd. (178.85, 4.77%) and Shyam Metalics and Energy Ltd. (326.45, 4.10%). 6 stocks slipped below their 200 SMA including Bajaj Holdings & Investment Ltd. (5,607.15, -2.34%) and 3M India Ltd. (21,535.00, -1.86%).