Trendlyne Analysis

Nifty 50 rose over 165 points from its day's low and closed above the key 18,000 mark. India’s WPI inflation data released on Monday indicated inflation eased to 4.95% in December, which is well within the range of RBI guidelines of 2% – 6%. Japan’s Nikkei 225 closed in the green as investors look ahead to policy setting by the Bank of Japan on Wednesday. China’s Hang Seng index closed 1% lower than Monday’s close. China reported a 3% GDP growth for 2022. Industrial production increased by 3.6% for 2022. Both the numbers were well above the Reuters poll. The Chinese economy grew at a slower pace in 2022 compared to GDP growth of 8.1% in 2021. All other Major Asian Indices closed flat from Monday’s close. European Indices traded lower than Monday’s levels.

US markets were closed on Monday in observance of Martin Luther King Jr. Day. Brent crude oil futures are down 0.5% after rising over 8.7% last week on the back of improvement in China’s demand outlook. OPEC is due to release its Oil market report today, followed by International Energy Agency’s monthly report.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat from Monday’s level. Nifty FMCG and Nifty Infra closed higher than Monday’s levels. Nifty IT closed in the green, despite the tech-heavy Nasdaq 100 futures trading in the red.

Nifty 50 closed at 18,053.30 (158.5, 0.9%), BSE Sensex closed at 60,655.72 (562.8, 0.9%) while the broader Nifty 500 closed at 15,396.15 (90.7, 0.6%)

Market breadth is in the red. Of the 1,948 stocks traded today, 822 were on the uptick, and 1,060 were down.

• Larsen & Toubro sees a long buildup in its January 25 future series as its open interest rises 9.7% with a put-call ratio of 0.79.

• Nestle India, Timken India and Hindustan Unilever are trading above their second resistance or R2 as market trades higher.

• Quant Mutual Fund buys a 1.2% stake (10 lakh shares) in Sula Vineyards for Rs 36.2 crore in a bulk deal yesterday

• Mastek is falling as its Q3FY23 net profit declines 18.9% QoQ to Rs 64.2 crore on account of a high base and higher finance costs. The sale of a corporate asset aided in bumping up the net profit in Q2FY23. The firm’s revenue grows 5.3% QoQ, led by robust growth in its North American segment. The stock shows up in a screener for companies with low debt.

• IIFL Finance is one of the high-volume, high-gainer stocks in the market today. The stock ranks high on Trendlyne’s checklist, scoring 69.57%. It also shows up in a screener for companies with improving cash flow and a high durability score.

• Bank of India is falling as its provisions increase 5.6X YoY to Rs 1,879 crore in Q3FY23. However, net profit rises 12% YoY. Asset quality improves as gross NPA falls 280 bps YoY and net NPA is down 105 bps. The bank shows up in a screener of stocks with increasing revenue for the past three quarters.

• PSU bank stocks like Bank of India, Punjab & Sind Bank, Bank of Maharashtra and UCO Bank are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

• TV18 Broadcast's Q3FY23 net profit drops 79.2% YoY to Rs 41.6 crore, but grows more than 7X QoQ. The profit fall is attributed to an increase in marketing expenses, operations and finance costs. Revenue rises 12.8% YoY. The company features in a screener of stocks with declining quarterly net profit and falling profit margin (YoY).

• Asian Paints, Havells India, and L&T Technology Services’ share prices fall over the week, ahead of Q3FY23 results in January.

• CB Ananthakrishnan, Director (Finance) and CFO of Hindustan Aeronautics, says the company's current orderbook is at Rs 84,000 crore. He expects its revenue to grow 8% in FY23 and FY24.

  #OnCNBCTV18 | Expect #revenue growth of 8% in #FY23 & #FY24, double digit revenue growth #FY25 onwards. Current orderbook stands at ?84,000 cr, says CB Ananthakrishnan of @HALHQBLR pic.twitter.com/7Cn85UxcPB

  — CNBC-TV18 (@CNBCTV18Live) January 17, 2023

• Mahindra CIE Automotive rises to an all-time high of Rs 387.7 per share. The stock has been rising for the past five consecutive sessions and is up 14.5% over the past month.

• JSW Ispat Special Products falls as it reports an increase in net loss to Rs 97.98 crore in Q3FY23 from Rs 27 crore in Q3FY22. The company also reports a 30% fall in crude steel production. It shows up in a screener of stocks with low PE.

• The Centre reduces the windfall tax on locally produced crude oil to Rs 1,900 per tonne from Rs 2,100 earlier. It also cuts the export tax on diesel to Rs 5 per litre from Rs 7.5. The windfall tax on aviation turbine fuel (ATF) falls to Rs 3.5 per litre from Rs 4.5.

  #India Monday reduced windfall tax on crude oil to Rs 1900 per tonne from Rs 2100 per tonne.https://t.co/yyHgHkqDm5

  — Economic Times (@EconomicTimes) January 16, 2023

• ICICI Securities maintains its ‘Buy’ rating on Federal Bank and raises its target price to Rs 170 from Rs 155, implying an upside of 20.5%. The brokerage believes the bank’s broad-based recovery in credit growth, steady margin expansion and improving asset quality will drive growth in the coming quarters. It expects the company’s net profit to grow at a CAGR of 25.4% over FY22-25.

• India’s merchandise exports have fallen 12.2% YoY to $34.5 billion as on December 2022. Imports stand at $58.2 billion and trade deficit in December widens to $23.8 billion.

  India’s merchandise exports contracted 12.2% YoY in December to $34.48 billion as slowing external demand amid recession fears in developed economies continued to weigh on outbound shipments.@shreyanandi15 reports#Exports #IndianEconomy #Recessionhttps://t.co/yaoYv8x3MJ

  — Business Standard (@bsindia) January 16, 2023

• Power stocks like Adani Green Energy, NHPC and NTPC are rising in trade. All constituents of the broader BSE Power index are trading in the green.

• Citi maintains ‘Buy’ on Federal Bank but raises target price to Rs 165 after its Q3FY23 results. The brokerage says pre-provisioning operating profit rises 40% YoY because of growth in net interest income. However, net interest margin is less likely to fall until the rate hike cycle continues.

  #CNBCTV18Market | Citi gives buy call on Federal Bank, raises target to Rs 165/sh, says strong, in-line Q3; NIM headwinds likely to materialise from FY24 pic.twitter.com/5b057Wbiy8

  — CNBC-TV18 (@CNBCTV18Live) January 17, 2023

• Dolly Khanna trims her stake in Polyplex Corp to below 1% in Q3FY23 from 1.2% in Q2FY23.

• Ashish Kacholia sells a 1.2% stake in D-Link (India) in Q3FY23, now holds 2.1% in the company.

• Central Bank of India, Persistent Systems and Hindustan Zinc see a positive shift in their share prices ahead of Q3FY23 results in January.

• Siemens signs a contract to manufacture 9,000 HP locomotives with the Ministry of Railways. It will deliver 1,200 electric locomotives at a project cost of Rs 26,000 crore.

• Angel One’s Q3FY23 net profit rises 38.6% YoY to Rs 227.9 crore and its revenue increases by 20.3% YoY. The company’s client base expands by 60.7% YoY to 1.25 crore and its average daily turnover jumps by 108.4% YoY. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (1,086.30, 5.81%), NHPC Ltd. (40.95, 4.20%) and Adani Green Energy Ltd. (2,166.15, 3.65%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (526.10, -4.96%), FSN E-Commerce Ventures Ltd. (133.30, -4.96%) and Zomato Ltd. (50.15, -4.84%).

Volume Rockets

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

Top high volume gainers on BSE included IIFL Finance Ltd. (514.75, 8.96%), Minda Corporation Ltd. (241.10, 6.52%) and Macrotech Developers Ltd. (1,086.30, 5.81%).

Top high volume losers on BSE were Bank of India (93.40, -4.55%), Indus Towers Ltd. (175.95, -3.32%) and Can Fin Homes Ltd. (526.05, -3.10%).

V-Mart Retail Ltd. (2,864.20, 1.95%) was trading at 18.7 times of weekly average. Sundram Fasteners Ltd. (962.00, -0.59%) and TTK Prestige Ltd. (790.00, 0.20%) were trading with volumes 11.0 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks made 52-week highs, while 8 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Jindal Stainless (Hisar) Ltd. (460.50, -0.22%), Mahindra CIE Automotive Ltd. (378.15, -0.28%) and Larsen & Toubro Ltd. (2,213.10, 3.55%).

Stocks making new 52 weeks lows included - Indus Towers Ltd. (175.95, -3.32%) and Natco Pharma Ltd. (543.60, -1.15%).

9 stocks climbed above their 200 day SMA including Macrotech Developers Ltd. (1,086.30, 5.81%) and Adani Green Energy Ltd. (2,166.15, 3.65%). 17 stocks slipped below their 200 SMA including Can Fin Homes Ltd. (526.05, -3.10%) and City Union Bank Ltd. (160.45, -2.96%).