Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 rising above the 18,200 mark. The Centre raised windfall tax on petroleum, crude oil and aviation turbine fuel, as per a government order dated January 2. European stocks traded higher than Monday’s levels. Asian markets closed higher, in line with the US indices futures, which were trading higher. US markets were closed on Monday in observance of the New year. However, US indices futures ticked marginally higher as investors looked ahead to a busy week of economic data and Fed minutes release. Brent crude oil futures traded marginally lower after rising over 2.7% in the previous trading session as traders weigh slowing global economic growth against China lifting its Covid lockdowns.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index trading flat.  Nifty Bank and Nifty Pharma closed higher than Monday levels. Nifty IT closed higher, following the tech-heavy Nasdaq 100 futures, which are trading higher.

Nifty 50 closed at 18,232.55 (35.1, 0.2%), BSE Sensex closed at 61,294.20 (126.4, 0.2%) while the broader Nifty 500 closed at 15,557.80 (34.2, 0.2%)

Market breadth is in the green. Of the 1,960 stocks traded today, 1,055 were gainers and 844 were losers.

• Relative strength index (RSI) indicates that stocks like The Fertilisers and Chemicals Travancore, RBL Bank and Solar Industries India are in the overbought zone.

• Indian Energy Exchange’s total electricity production volumes rise 4% YoY to 7,964 million units. According to National Load Dispatch Center’s data, energy consumption is up 10% YoY to 121 billion units. It shows up in a screener of bearish stocks with low to medium Trendlyne scores.

• PSU banks like UCO Bank, Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank of India are rising. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the green.

• ICICI Securities maintains its ‘Buy’ rating on Jindal Steel & Power and increases the target price to Rs 750, an upside of 24.1%. The brokerage sees the firm’s margins grow as cost efficiencies improve due to ramp-up in captive coal production. It believes the company’s logistical advantages and capacity expansion will drive revenue growth in the coming quarters.

• Sah Polymers’ Rs 66.3 crore IPO gets bids for 5.4X the available 56.1 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 16.5X the available 10.2 lakh shares on offer.

• Kotak Institutional Securities initiates coverage on Life Insurance Corp of India with a ‘Buy’ rating and target price of Rs 1,000. The brokerage says shifting the product mix by its agency channel will expand LIC’s margin.

  #BrokerageRadar | Kotak on LIC: Gradual margin expansion, account bifurcation boosts EV and earnings@LICIndiaForever #StockMarket #StocksToWatch pic.twitter.com/TWPRQT6b13

  — ET NOW (@ETNOWlive) January 3, 2023

• Larsen & Toubro’s arm L&T Construction bags orders worth Rs 5,000-7,000 crore from the government of Madhya Pradesh. The orders involve the execution of two lift irrigation projects in Dewar & Dhar of Madhya Pradesh.

• Welspun India prepays term loans of Rs 45.8 crore at the end of 2022, along with other due instalments. The outstanding term loan, as of December 31, 2022, stands at Rs 129.72 crore against Rs 259.64 crore on March 31, 2022.

• IT stocks like Mphasis, Coforge, Tata Consultancy Services and Tech Mahindra are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

• Federal Bank reaches an all-time high of Rs 142.2 per share as its Q3FY23 total deposits rise 14.8% YoY to Rs 2 lakh crore and gross advances rise 19.1% YoY to Rs 1.7 lakh crore. The bank shows up on the screener of stocks with good momentum and return on equity (RoE).

• Advertising & Media, Fertilizers and Shipping industries rise more than 40% in the past 90 days.

• Pranjul Bhandari, Managing Director and Chief India Economist at HSBC (India), expects India’s nominal GDP to fall to 9.5% from 15%, leading to slow tax growth.

  #OnCNBCTV18 | Nominal GDP could see a slowdown resulting in slow tax growth. Investment growth has been strong in the last couple of months. Expect nominal GDP to reduce to 9.5% from 15%, says Pranjul Bhandari of HSBC pic.twitter.com/n9JovFe78e

  — CNBC-TV18 (@CNBCTV18Live) January 3, 2023

• Hindustan Zinc’s Q3FY23 mined metal production rises 1% YoY to 254 KT (kilo tonnes), while its integrated saleable metal production falls 2% due to lower availability and the planned shutdown of one of its lead plants in Q3. The stock shows up in a screener for companies with high TTM EPS growth.

• Bank of Maharashtra rises more than 3% in trade after reporting a 15.8% YoY increase in total business to Rs 3.6 lakh crore in December 2022. Its gross advances grow 21.8% YoY. The bank ranks high in the Trendlyne checklist score and shows up in a screener of stocks with declining RoCE in the past two years.

• The Centre raises the windfall tax on locally produced crude oil to Rs 2,100 per tonne from Rs 1,700 earlier and export tax on diesel to Rs 7.5 per litre from Rs 5. The windfall tax on aviation turbine fuel (ATF) rises to Rs 4.5 per litre from Rs 1.5 earlier. 

  India raises windfall tax on crude oil, diesel and aviation turbine fuel.
  
  Read to know more#windfalltax https://t.co/aQv10axlnP

  — Business Standard (@bsindia) January 3, 2023

• RateGain Travel Technologies is rising as it enters a definitive agreement to acquire Adara Inc through an asset purchase. RateGain's founder and chairman Bhanu Chopra says, "Adara’s key differentiator is its access to permissioned travel-intent data from the world’s top travel and hospitality players as well as destination marketing organizations and relying less on traditional methods of tracking consumer intent."

• Granules India is rising as it inks a pact with Greenko ZeroC for the application of Green Molecule Solutions in the pharmaceutical industry. Granules India will build a green field facility for the manufacture of APIs, intermediates and fermentation-based products. The project costs Rs 2,000 crore and will be built over five years.

• Zomato is falling as its co-founder and Chief Technology Officer (CTO) Gunjan Patidar tenders his resignation on Monday after the market close.

• Jefferies initiates coverage on Piramal Pharma with a ‘Buy’ rating and target price of Rs 150. The brokerage expects a turnaround in the company’s consumer health business in FY24. It estimates an EBITDA CAGR of 21% during FY22-25E.

  #BrokerageRadar | @Jefferies on Piramal Pharma: Initiate Buy; Consumer health business growing well with turnaround expected in FY24#StockMarket #StocksToWatch pic.twitter.com/GKtIFZU9ep

  — ET NOW (@ETNOWlive) January 3, 2023

• HFCL bags purchase orders worth Rs 95.38 crore from Reliance Projects & Property Management Services for the supply of optical fibre cables. The company shows up in a screener of stocks with consistent high returns over the past five years.

• Mahindra & Mahindra Financial Services' December 2022 disbursements grow 67% YoY to Rs 4,650 crore. Total disbursements for Q3FY23 stand at Rs 14,450 crore. Gross NPAs are higher than Stage 3 assets, however, the NBFC maintains that extra provisioning may not be required for FY23.

• PSP Projects emerges as the lowest bidder for the construction of a high-rise office building in Surat, Gujarat, for the Surat Municipal Corporation. The project is worth Rs 1,364.5 crore. The stock shows up in a screener for companies with improving cash flow from operations over the past two years.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (196.30, 4.53%), HDFC Life Insurance Company Ltd. (595.60, 4.44%) and Power Finance Corporation Ltd. (156.00, 4.21%).

Downers:

Largecap and midcap losers today include TVS Motor Company Ltd. (1,041.55, -2.94%), Mahindra & Mahindra Financial Services Ltd. (234.25, -2.82%) and Shriram Finance Ltd. (1,349.65, -2.61%).

Volume Shockers

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

Top high volume gainers on BSE included Swan Energy Ltd. (329.65, 6.08%), HDFC Life Insurance Company Ltd. (595.60, 4.44%) and Power Finance Corporation Ltd. (156.00, 4.21%).

Top high volume losers on BSE were Mahindra & Mahindra Financial Services Ltd. (234.25, -2.82%), Zydus Wellness Ltd. (1,511.00, -1.25%) and Oracle Financial Services Software Ltd. (2,999.55, -0.81%).

CSB Bank Ltd. (251.20, 3.20%) was trading at 16.1 times of weekly average. Motilal Oswal Financial Services Ltd. (711.05, 2.35%) and TeamLease Services Ltd. (2,512.00, -0.54%) were trading with volumes 9.5 and 8.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks made 52-week highs, while 1 stock was an underachiever and hit a 52-week low.

Stocks touching their year highs included - Apollo Tyres Ltd. (325.40, -0.87%), Axis Bank Ltd. (962.30, 2.20%) and Canara Bank (336.80, 0.19%).

Stock making new 52 weeks lows included - Aavas Financiers Ltd. (1,798.05, -0.56%).

15 stocks climbed above their 200 day SMA including V-Mart Retail Ltd. (2,987.00, 5.55%) and Chemplast Sanmar Ltd. (463.80, 3.98%). 5 stocks slipped below their 200 SMA including Procter & Gamble Hygiene & Healthcare Ltd. (13,933.05, -2.38%) and BASF India Ltd. (2,775.05, -1.08%).