Trendlyne Analysis

Nifty 50 fell nearly 190 points and closed in the red on a volatile day of trade. However, European stocks traded higher than Tuesday’s levels. India’s December Services PMI rose to a 6-month high of 58.5 compared to 56.4 in November. Asian indices closed mixed, despite the US indices closing in the red on Tuesday. US stocks fell and closed in the red on the first trading session of 2023 as investors looked ahead to Fed’s minutes release later today.

The tech-heavy Nasdaq 100 index closed in the red led by heavyweights Apple and Tesla. Tesla fell over 12% on Tuesday as it missed delivery estimates in Q4CY22. S&P 500 fell 0.4% while the Dow Jones closed flat on a volatile day of trade. Brent crude oil futures extended losses and traded deep in the red after falling over 4.2% on Tuesday as investors awaited cues on the US Monetary policy from the minutes of the Federal Reserve’s December meeting.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Media and Nifty FMCG closed lower than Tuesday’s levels. Nifty IT also closed in the red, taking cues from the Nasdaq 100, which fell 0.7% on Tuesday.

Nifty 50 closed at 18,042.95 (-189.6, -1.0%) , BSE Sensex closed at 60,657.45 (-636.8, -1.0%) while the broader Nifty 500 closed at 15,393.00 (-164.8, -1.1%)

Market breadth is sharply down. Of the 1,960 stocks traded today, 548 were gainers and 1,360 were losers.

• Coromandel International beats The Fertilisers & Chemicals Travancore in QoQ revenue & net profit growth, PE ratio, and price-to-book ratio. But it lags in YoY revenue & net profit growth, annual RoE, and one-year price change.

• Sonata Software, Suven Pharmaceuticals and Abbott India outperform their respective industries in terms of return on capital employed (RoCE).

• The Fertilisers & Chemicals Travancore rises 5% in trade today. The stock has risen 142% over the past month. It ranks high in Trendlyne's checklist with a score of 62%.

• Media stocks like Nazara Technologies, Dish TV India, TV18 Broadcast, Sun TV Network and Hathway Cable & Datacom are falling in trade. All constituents of the broader sectoral index Nifty Media are also trading in the red.

• RBL Bank falls more than 4% in trade today. It ranks high on Trendlyne’s valuation and momentum scores but medium on the checklist score.

• Vijay Kumar, Head and VP (Finance) of NCC, says that the company has bagged orders worth Rs 5,000 crore during Q3FY23. He adds that order inflows are strong and could likely be around Rs 16,000 crore in FY23.

  NCC gives a sense on FY23 outlook
  ???? Order inflows likely around 16k cr
  ???? Revenue of 30% is doable
  
  ???? Adds that Non fund based limit is at ?11000 cr & will be enhanced by ?2000cr ???? #StockMarket #Nifty
  
  pic.twitter.com/SRvrPPGFmO

  — Nigel D'Souza (@Nigel__DSouza) January 4, 2023

• Motilal Oswal maintains its ‘Buy’ rating on Prestige Estates Projects with a target price of Rs 675, indicating an upside of 44%. The brokerage expects the company’s launch pipeline to help it sustain robust pre-sales momentum in CY23 and get better cash flow visibility and debt reduction. It sees the firm’s revenue growing at a CAGR of 11% over FY22-25.

• Allcargo Logistics buys a 100% stake in Asiapac Equity Investment, a company dealing with ocean freight logistics, for Rs 41.35 crore. The stock shows up in a screener with improving cash flow from operations for the past two years.

• Crude oil prices fall by over 4% on Tuesday as investors wait for the US Federal Reserve’s monetary policy meeting to conclude. Fears of recession also play a role in the fall. While natural gas and aluminium prices continue to decline, gold prices are at their 7-month high levels.

  #CommodityCorner
  
  -Oil prices fell 4% yesterday, largest decline in >3 months
  -Gold prices hovering around 7-month highs
  -Aluminum down >40% from their March record peak @vinnii_motiwala #Oil #Gold #Aluminum pic.twitter.com/TR6ii19fsh

  — ET NOW (@ETNOWlive) January 4, 2023

  Reliance Industries’ wholly owned subsidiary Reliance Consumer Products is set to acquire a 50% equity stake in beverages company Sosyo. The acquisition will enable Reliance Consumer to enhance its beverage portfolio.

• HDFC Bank’s net advances rise 19.5% YoY to Rs 15.1 lakh crore and deposits grow 19.9% YoY as of December 31, 2022. The bank’s CASA (current account savings account) deposits increase 12% YoY to Rs 7.6 lakh crore. The stock shows up in a screener for companies with high TTM EPS growth.

• Norges Bank – Govt Pension Global buys a 0.66% stake (3.3 lakh shares) in Multi Commodity Exchange of India for Rs 50.1 crore in a bulk deal yesterday.

• Metal stocks like Hindalco Industries, Vedanta and Jindal Stainless fall more than 2% in trade. The broader Nifty Metal index is also trading in the red.

• Realty stocks like Godrej Properties, Brigade Enterprises and Oberoi Realty are falling in trade. All constituents of the broader Nifty Realty index are trading in the red.

• India’s December Services PMI rises to a 6-month high of 58.5 compared to 56.4 in November on the back of robust demand.

  #JustIN | India December Services PMI at 58.5 Vs 56.4 MoM pic.twitter.com/ii3cM4zCT5

  — CNBC-TV18 (@CNBCTV18Live) January 4, 2023

• Avenue Supermart's revenue from operations rises 24.7% YoY to Rs 11,304.6 crore in Q3FY23. The retailer adds four stores during the quarter, taking the total number to 306. It features in a screener of stocks with growth in quarterly net profit and increasing net profit (YoY).

• Jefferies initiates coverage on Allcargo Logistics with a ‘Buy’ rating and target price of Rs 500. The brokerage says that the company is a good player in global trade and expects normalization of FY21-22 gains in FY23-24E.

  #BrokerageRadar | @Jefferies has initiated coverage on Allcargo Logistics with a 'Buy' rating; Pankaj Poddar brings us more details from the brokerage note. Listen in @allcargofficial #StockMarket #StocksToWatch pic.twitter.com/ldQQaVgQlR

  — ET NOW (@ETNOWlive) January 4, 2023

• Radiant Cash Management’s shares list at a premium of 9.6% to the issue price of Rs 94 on its debut on the bourses. The Rs 250 crore IPO was subscribed for 53% of the total shares on offer.

• IndusInd Bank’s net advances rise 19% YoY to Rs 2.7 lakh crore, and deposits grow 14% YoY as on December 31, 2022. Punjab & Sind Bank’s gross advances also see a 17% YoY increase. Punjab & Sind Bank ranks high in the Trendlyne checklist score and is rising in a weak market.

• Railtel Corp of India rises as it receives a work order from South Eastern Coalfields for providing VPN services at several locations under the SECL Command Area for a period of five years. The order value is Rs 186.19 crore.

• Vedanta’s Q3FY23 total aluminium production falls 2% YoY to 566 KT (kilo tonnes), and steel declines 13% YoY due to maintenance activities. The firm’s power sales rise by 5% YoY to 3,616 million units. It shows up in a screener for stocks in the PE Buy zone with high durability and rising momentum scores.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (201.05, 2.42%), UNO Minda Ltd. (538.55, 2.21%) and 3M India Ltd. (22,029.95, 1.98%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (56.35, -4.41%), JSW Steel Ltd. (736.30, -4.12%) and Aditya Birla Capital Ltd. (148.25, -3.95%).

Volume Shockers

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

Top high volume gainers on BSE included Prism Johnson Ltd. (111.50, 7.78%), Carborundum Universal Ltd. (930.30, 4.73%) and Caplin Point Laboratories Ltd. (745.75, 2.93%).

Top high volume losers on BSE were Avenue Supermarts Ltd. (3,924.20, -3.37%), Delhivery Ltd. (327.00, -3.10%) and IndusInd Bank Ltd. (1,223.10, -1.44%).

Equitas Small Finance Bank Ltd. (59.65, 0.51%) was trading at 7.4 times of weekly average. Havells India Ltd. (1,148.75, 1.84%) and Heidelberg Cement India Ltd. (189.00, 0.00%) were trading with volumes 4.5 and 3.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks hit their 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Axis Bank Ltd. (957.45, -0.50%), General Insurance Corporation of India (201.05, 2.42%) and Equitas Small Finance Bank Ltd. (59.65, 0.51%).

Stocks making new 52 weeks lows included - Galaxy Surfactants Ltd. (2,448.00, -0.78%) and Aavas Financiers Ltd. (1,765.40, -1.82%).

10 stocks climbed above their 200 day SMA including Caplin Point Laboratories Ltd. (745.75, 2.93%) and 3M India Ltd. (22,029.95, 1.98%). 18 stocks slipped below their 200 SMA including Balrampur Chini Mills Ltd. (386.75, -3.87%) and Avenue Supermarts Ltd. (3,924.20, -3.37%).