Trendlyne Analysis

Indian indices closed in the red for a third straight session on a volatile day of trade. However, other Asian indices closed in the green except for Hang Seng, which fell 0.21%. European indices traded higher than Thursday's levels with DAX being the only exception. US indices closed in the red on Thursday. US stocks fell as hiring numbers beat the estimates indicating strength in the labor market. This fueled speculations that the US Fed has room to keep raising federal fund rates. The tech-heavy Nasdaq 100 fell 1.6% and the Dow Jones closed over 1% lower. Brent crude oil futures traded higher after rising over 1% on Thursday. However, crude oil prices are down around 7% this week.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. All major sectoral indices closed lower than Thursday’s level following the broader Nifty 50 index. Nifty IT closed deep in the red, following the Nasdaq 100, which closed lower on Thursday.

Nifty 50 closed at 17,859.45 (-132.7, -0.7%), BSE Sensex closed at 59,900.37 (-452.9, -0.8%) while the broader Nifty 500 closed at 15,272.00 (-114.2, -0.7%)

Market breadth is overwhelmingly negative. Of the 1,965 stocks traded today, 605 were on the uptick, and 1,300 were down.

• Bajaj Finance sees a short buildup in its January 25 future series as its open interest rises 6.1% with a put-call ratio of 0.44.

• According to reports, LKP Securities initiates coverage on CSB Bank with a ‘Buy’ rating and a target price of Rs 313, indicating an upside of 25%. The brokerage is optimistic about the bank’s growth prospects, given its robust loan growth, improving asset quality and low credit costs. It expects the bank’s net interest income to grow at a CAGR of 17.7% over FY22-24.

• Storage media & peripherals, aerospace, and advertising & media industries rise more than 12% in the past week.

• Sigachi Industries surges as its board considers a proposal to raise funds by way of issuing equity or convertible warrants on a preferential basis to promoters and non-promoters. The stock shows up in a screener for companies with net profits rising sequentially over the past three quarters.

• Dabur India says that demand in Q3FY23 remains weak as rural markets do not show significant improvement. Its revenue growth will be between low to mid-single digit in Q3. It expects international business to clock decent growth in constant currency. The company is trading below its second support or S2 level.

• JP Morgan says that China’s reopening could be a driving force for Indian metal companies. The brokerage prefers the steel segment over base metals and coal. Tata Steel and Steel Authority of India are its preferred picks in the steel segment.

  #MarketsWithETNOW | @jpmorgan on Metals: China reopening should still be the key driver in the near term#StockMarket #StocksToWatch pic.twitter.com/zcJwHH808S

  — ET NOW (@ETNOWlive) January 6, 2023

• Foreign institutional investors pull out Rs 4,615.9 crore from the equity market over the past week, according to Trendlyne's FII dashboard. However, index options receive the highest inflow of Rs 25,847.7 crore from foreign investors. Mutual funds invest Rs 1,048.1 crore in the equity market.

• ICICI Direct initiates coverage on Nitin Spinners with a ‘Buy’ rating and a fair price of Rs 290, indicating an upside of 41.4%. The brokerage believes the firm’s vertically integrated business model, rising exports and capacity expansion will drive revenue growth in the coming quarters. It expects the company’s revenue to grow at a CAGR of 17.9% over FY23-25.

• Sobha is rising as it achieves its highest-ever sales value of Rs 1,425 crore, a 36% YoY growth. Its average price realisation grows by 21.9% YoY to Rs 9,650 per square foot. It shows up on a screener for stocks with strong cash-generating ability from core business.

• Zydus Lifesciences’ arm Zydus Pharmaceuticals launches topiramate extended-release capsules in the United States. It will be used to treat epilepsy in patients older than six years. As of November 2022, its annual sales stand at $488 million in the United States.

• Textile company Welspun India is falling in trade as reports suggest that Bed, Bath & Beyond, one of its biggest customers, is considering filing for bankruptcy. Other textile stocks like KPR Mill, Trident, Raymond and Vardhman Textiles are also trading in the red.

  Bed Bath & Beyond preparing to file bankruptcy within weeks -sources https://t.co/Ud1622fnFE pic.twitter.com/mXcAPsk2Ea

  — Reuters U.S. News (@ReutersUS) January 6, 2023

• Macrotech Developers’ Q2FY23 bookings rise 57% YoY to Rs 3,148 crore and collections grow by 24% YoY on the back of robust demand. The company has added Rs 17,800 crore of gross development value (GDV) in FY23, exceeding its guidance of Rs 15,000 crore. The company features in a screener of stocks with improving net cash flow for the past two years.

• Pranjul Bhandari, Chief India and Indonesia Economist at HSBC Securities and Capital Markets (India), expects India’s GDP growth to fall to 5.5% in FY24 as the country’s growth momentum is gradually slowing down. The Indian economy is expected to grow by 6.8% in FY23.

  India's economy is expected to grow 5.5% in FY24, a notch below the expected potential rate of 6%, as growth momentum in the country was slowing gradually, says HSBC economist.#IndianEconomy #EconomicGrowth #HSBChttps://t.co/qY3BhiRSBM

  — Business Standard (@bsindia) January 5, 2023

• Media stocks like Dish TV India, PVR, Inox Leisure, Network 18 Media & Investments and TV18 Broadcast are falling in trade. All constituents of the broader sectoral index Nifty Media are also trading in the red.

• Mukand is rising after completing the sale of 45.94 acres of its land in Thane, Maharashtra, to AGP DC Infra Two for Rs 796.5 crore. The stock shows up in a screener for companies with revenue increasing sequentially over the past four quarters.

• RHI Magnesita India announces the acquisition of Dalmia OCL, an Indian refractory business of Dalmia Bharat Refractories, via a share swap agreement. The share consideration has a value of approx Rs 1,708 crore.

• Ittira Davis, Managing Director of Ujjivan Small Finance Bank, says the bank’s outstanding loans has grown 33% YoY in Q3FY23. He expects strong growth in loans and deposits moving forward.

  #OnCNBCTV18 | Expect strong loan and deposit growth going forward. Loan growth guidance was 30%, expect to stay ahead of that. Expect further improvement in asset quality in Q4FY23, says Ittira Davis of Ujjivan Small Finance Bank pic.twitter.com/h87brrdFcy

  — CNBC-TV18 (@CNBCTV18Live) January 6, 2023

• Ashish Kacholia adds Raghav Productivity Enhancers to the portfolio in Q3FY23, buys a 2.1% stake worth Rs 21.3 crore.

• Tata Consultancy Services, ICICI Prudential Life Insurance and MphasiS see a positive shift in their share price ahead of their Q3FY23 results.

• Vodafone Idea plans to raise loans worth Rs 7,000 crore from State Bank of India, HDFC Bank, and others, according to reports. The banks are, however, waiting for a clarification on the stake that will be held by the Centre in the company before they give out loans. This is in relation to Vodafone Idea’s pending dues with Indus Towers, worth Rs 7,500 crore.

• Rail Vikas Nigam receives an order worth Rs 166.3 crore from the Gujarat Metro Rail Corp. The order involves the construction of a ballastless steel track from Sarthana to Dream City under the Surat Metro Rail Project. The stock shows up in a screener for companies with improving cash flow and a high durability score.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (59.00, 7.76%), Supreme Industries Ltd. (2,450.15, 2.69%) and Astral Ltd. (2,060.25, 2.50%).

Downers:

Largecap and midcap losers today include General Insurance Corporation of India (180.75, -7.45%), LIC Housing Finance Ltd. (404.95, -3.69%) and Dabur India Ltd. (552.85, -3.47%).

Volume Rockets

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

Top high volume gainers on BSE included IDBI Bank Ltd. (59.00, 7.76%), Radico Khaitan Ltd. (1,072.25, 5.79%) and KPIT Technologies Ltd. (716.65, 4.97%).

Top high volume losers on BSE were Birla Corporation Ltd. (950.55, -3.87%), AIA Engineering Ltd. (2,510.30, -3.28%) and Cholamandalam Investment & Finance Company Ltd. (667.90, -2.25%).

Aether Industries Ltd. (844.30, -0.49%) was trading at 19.2 times of weekly average. Medplus Health Services Ltd. (603.95, -0.95%) and Symphony Ltd. (967.15, 3.09%) were trading with volumes 9.9 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks took off, crossing 52-week highs, while 4 stocks hit their 52-week lows.

Stocks touching their year highs included - Abbott India Ltd. (22,328.05, 1.01%), Apollo Tyres Ltd. (327.75, -3.10%) and Power Finance Corporation Ltd. (157.15, 0.16%).

Stocks making new 52 weeks lows included - Biocon Ltd. (256.35, -1.48%) and Thyrocare Technologies Ltd. (588.80, -2.74%).

8 stocks climbed above their 200 day SMA including Godrej Industries Ltd. (451.30, 4.93%) and GMM Pfaudler Ltd. (1,632.55, 3.42%). 23 stocks slipped below their 200 SMA including Birla Corporation Ltd. (950.55, -3.87%) and Welspun Corp Ltd. (218.75, -3.38%).