Trendlyne Analysis

Nifty 50 closed in the red, below the 18,100 mark. European indices traded lower than Wednesday’s levels. Major Asian indices closed in the green, barring Japan's Nikkei 225 index and China’s Hang Seng index, which closed lower than Wednesday’s level. On Wednesday, the S&P 500 closed 1.6% lower while the Dow Jones fell 1.86% on a volatile day of trade.

US economic data released on Wednesday showed retail sales dropped by 1.1%, slightly more than the 1.0% estimated by analysts. US industrial production in December fell by 0.7% vs analyst estimates of 0.1% and November output dropped by 0.6%, lower than analyst estimates of 0.2%. The tech-heavy Nasdaq 100 index closed 1.3% lower than Tuesday’s closing level. Brent crude oil futures traded trade lower as industry data released by the US on Wednesday indicated a weekly build-up in US crude inventories.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. All the major sectoral indices closed in the red barring Nifty PSU Bank, which closed higher than Wednesday’s level. Nifty IT closed in the green, despite Nasdaq 100 closing lower on Wednesday.

Nifty 50 closed at 18,107.85 (-57.5, -0.3%), BSE Sensex closed at 60,858.43 (-187.3, -0.3%) while the broader Nifty 500 closed at 15,419.70 (-46.7, -0.3%)

Market breadth is in the red. Of the 1,951 stocks traded today, 766 were on the uptick, and 1,118 were down.

• IndusInd Bank sees a short buildup in its January 25 future series as its open interest rises 11.5% with a put-call ratio of 0.36.

• Asian Paints, Titan and Tata Power are trading below their third support or S3 level as the market trades lower.

• Happiest Minds is falling as its consolidated net profit dips 3.1% QoQ to Rs 57.6 crore on the back of employee costs as a percentage of revenue rises by 110 bps QoQ. Revenue increases by 3.2% QoQ to Rs 366.9 crore. The stock shows up in a screener for companies with revenue growing sequentially for the past eight quarters.

• Domestic air traffic grows 14% YoY to around 1.3 crore passengers in December 2022. Indigo and Vistara lose 80 bps and 10bps MoM in market share respectively.

  #AviationData | Domestic airline traffic up 14% YoY At 12.7 million. IndiGo market share at 54.9% vs 55.7% MoM
  
  Here's more???? pic.twitter.com/tmbK5vOcKU

  — CNBC-TV18 (@CNBCTV18Live) January 19, 2023

• Asian Paints is falling despite its net profit rising 5.6% YoY to Rs 1,072.7 crore on account of falling raw material prices. Revenue grows by only 1.7% YoY on account of muted demand. The stock shows up in a screener for companies with decreasing promoter pledges.

• ICICI Securities is falling as its net profit declines by 26.7% YoY to Rs 280.5 crore in Q3FY23. The fall in income from the services and brokerage segment has caused the revenue to reduce by 6.7% YoY. The company shows up in a screener of stocks with declining quarterly net profit and profit margin (YoY).

• Alembic Pharmaceuticals is rising as it receives tentative approval from the US FDA for its abbreviated new drug application (ANDA) for 'acalabrutinib' capsules. It has an estimated market value of $1.5 billion for the year ending September 2022, according to IQVIA. The drug is equivalent to the reference listed drug product (RLD) of AstraZeneca UK.

• Tata Investment Corp, ICICI Prudential Life Insurance and Avenue Supermarts see a fall in net profit growth both QoQ and YoY after declaring their Q3FY23 results in the past week.

• HDFC Securities maintains its ‘Buy’ rating on Angel One but reduces its target price to Rs 1,800 from Rs 2,020. However, this is an upside of 40.7% from the current price. The brokerage cites a drop in the company's 12-month rolling activation rates for its target price revision. It remains positive on the firm’s prospects given its flat-fee model, lean cost structure and market leadership.

• Aneel Gambhir, CFO of Blue Dart Express, says there is softening of demand after the festive season but expects it to pick up soon. He adds that the company plans to add 100 stores in a year time and expand its retail footprint.

  #OnCNBCTV18 | #Demand is taking a pause, may return soon, says Aneel Gambhir, CFO, Blue Dart. Tells @_prashantnair , @_soniashenoy & @Nigel__DSouza that they have market leadership position in #AirLogistics. Co will expand its #retail footprint further, he adds. pic.twitter.com/O0tyM3y5a8

  — CNBC-TV18 (@CNBCTV18News) January 19, 2023

• Rallis India is falling as its Q3FY23 net profit and exports decrease 43% YoY to Rs 22.6 crore and 6.5% respectively. EBITDA margin also dips 220 bps YoY due to higher marketing expenses. Commenting on the results, Sanjiv Lal, MD & CEO of the company, said, "Our Q3 revenues witnessed 0.3% growth over past year against the backdrop of erratic rainfall in the domestic market and headwinds in International business."

• Hotels, Restaurants & Tourism, Media and Retailing sectors fall more than 6.5% in trade in the past month.

• RattanIndia Enterprises’ annual RoCE stands at 77.6%, outperforms its industry by 68.1%.

• Tata Steel is rising as around 33.3 lakh shares (0.26% equity) amounting to Rs 39.9 crore change hands in a large trade, according to reports.

  Tata Steel Large Trade | 32.26 lakh shares (0.26% equity) worth ?39.93 cr at an average of ?124/sh#tatasteel #LargeTrade pic.twitter.com/ykbAW7v9KK

  — CNBC-TV18 (@CNBCTV18Live) January 19, 2023

• IndusInd Bank’s Q3FY23 net profit rises 58% YoY to Rs 1,964 crore and net interest income grows 18% YoY. Net NPA also increases marginally to 0.62% in Q3. The bank shows up in a screener of stocks with a decrease in provision in recent results.

• UBS downgrades its rating on Titan to ‘Neutral’ from ‘Buy’ and cuts the target price to Rs 2,600 from Rs 3,000. The brokerage expects jewellery demand to be weak in FY24 due to rising gold prices and lower pandemic savings.

  CNBC-TV18 Stocks Board | #UBS downgrades @TitanCompanyLtd to #Neutral from #Buy & cuts #TargetPrice to Rs 2,600 from Rs 3,000. Says, rise in #gold prices & depleting pandemic savings will impact grammage growth. @blitzkreigm with more details pic.twitter.com/xmygL2DewB

  — CNBC-TV18 (@CNBCTV18News) January 19, 2023

• Rakesh Jhunjhunwala's portfolio cuts 0.2% stake in Fortis Healthcare in Q3FY23, now holds 4.5% in the company.

• Ashish Kacholia buys a 0.6% stake in SJS Enterprises in Q3FY23, now holds 4.4% in the company.

• Mahindra Lifespace Developers is rising as it announces redevelopment projects related to residential societies in Santa Cruz, Mumbai. The revenue potential of this project is Rs 500 crore. The company shows up in a screener of stocks with low debt.

• The US FDA issues Form 483 with two observations to Aurobindo Pharma’s subsidiary APL Health Care located in Telangana. The observations are procedural in nature. The stock is trading near its 52-week low.

• Vedanta rises as its board approves the acquisition of Meenakshi Energy, a 1,000 megawatt coal power plant, for Rs 1,440 crore. The acquisition is likely to be completed by FY24.

• Persistent Systems’ standalone Q3FY23 net profit and revenue rise 8.2% QoQ to Rs 237.9 crore and 5.9% respectively. Its EBIT margin increases to 15.4% from 14.6% in Q2FY23. However, the company also reports an increase in expenses by 44% QoQ because of a rise in employee benefit expenses. The company has declared an interim dividend of Rs 28 per share for FY23.

Riding High:

Largecap and midcap gainers today include Persistent Systems Ltd. (4,258.15, 7.54%), Hindustan Zinc Ltd. (377.55, 4.48%) and Coal India Ltd. (223.95, 3.27%).

Downers:

Largecap and midcap losers today include Adani Green Energy Ltd. (1,954.30, -6.80%), Torrent Power Ltd. (455.75, -4.96%) and Adani Enterprises Ltd. (3,463.55, -3.70%).

Volume Rockets

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

Top high volume gainers on BSE included Persistent Systems Ltd. (4,258.15, 7.54%), Prism Johnson Ltd. (108.95, 5.47%) and KEI Industries Ltd. (1,539.75, 4.97%).

Top high volume losers on BSE were Rallis India Ltd. (223.90, -8.80%), Torrent Power Ltd. (455.75, -4.96%) and Alok Industries Ltd. (14.40, -3.68%).

Mahindra Lifespace Developers Ltd. (365.00, 4.95%) was trading at 15.0 times of weekly average. Amber Enterprises India Ltd. (1,869.75, 0.62%) and Orient Electric Ltd. (264.90, 1.13%) were trading with volumes 6.1 and 5.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks hit their 52-week highs, while 10 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Hindustan Zinc Ltd. (377.55, 4.48%), Swan Energy Ltd. (358.35, 4.93%) and APL Apollo Tubes Ltd. (1,177.40, -0.97%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,298.15, -0.50%) and Natco Pharma Ltd. (534.50, -1.14%).

6 stocks climbed above their 200 day SMA including Shyam Metalics and Energy Ltd. (313.10, 2.93%) and UPL Ltd. (747.55, 2.08%). 9 stocks slipped below their 200 SMA including Rallis India Ltd. (223.90, -8.80%) and ICICI Lombard General Insurance Company Ltd. (1,169.60, -2.55%).