Trendlyne Analysis

Indian indices closed in the red, with the Nifty 50 falling below the 18,000 mark. However, the benchmark Nifty 50 index posted a weekly gain of 0.4 %. European stocks traded higher than Thursday’s levels. Most major Asian indices also closed in the green, despite the US indices closing lower on Thursday. US stocks fell as investors continued to assess several economic data such as retail sales and industrial production. The tech-heavy Nasdaq 100 fell 1% while the Dow Jones closed 0.8% lower. However, US indices’ futures are currently trading in the green.

European Central Bank President Christine Lagarde said inflation is too high and that ECB is determined to bring it back to 2% at the ongoing five-day World Economic Forum's annual meeting. Investors continue to assess the impact of high inflation on company financials as the result season is in full swing. Crude oil prices are set to post a second straight weekly advance as China's outlook brightens amid the reopening of its economy.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Realty and Nifty FMCG closed lower than Thursday’s closing levels. Nifty IT also closed lower, following the tech-heavy Nasdaq 100, which closed in the red on Thursday.

Nifty 50 closed at 18,027.65 (-80.2, -0.4%), BSE Sensex closed at 60,621.77 (-236.7, -0.4%) while the broader Nifty 500 closed at 15,347.90 (-71.8, -0.5%)

Market breadth is in the red. Of the 1,961 stocks traded today, 733 showed gains, and 1,162 showed losses.

• Relative strength index (RSI) indicates that stocks like Max Financial Services, Hindustan Zinc, Edelweiss Financial Services and Swan Energy are in the overbought zone.

• HDFC Life Insurance Co’s Q3FY23 net profit rises 15.2% YoY to Rs 315.2 crore. Its net premium income increases 18.6% YoY as its renewal premiums grow 29.7% YoY. The value of new business for 9MFY23 also rises 22% YoY. The stock shows up in a screener for companies with improving net cash flow for the past two years.

• Laurus Labs receives the establishment inspection report (EIR) from the US FDA for the pre-approval inspection (PAI) conducted at its manufacturing facility in Andhra Pradesh from October 24 to 28, 2022. The company features in a screener of stocks which have a strong cash-generating ability from its core business.

• PVR posts a net profit of Rs 15.9 crore for Q3FY23 against a net loss of Rs 10.2 crore in Q3FY22. Its revenue increases 35% YoY on the back of an increase in the average ticket price, admits and spending per head. Content releases have also contributed to the revenue increase. It shows up in a screener of turnaround companies – loss to profit QoQ.

• Rating Agency Moody’s Investors Service retains the Baa3 rating on State Bank of India, while it upgrades ratings for Punjab National Bank, Canara Bank and Bank of Baroda to Baa3 from Ba1. The agency expects healthy asset quality for the next 12-18 months and has a stable outlook on the four banks.

  Moody's expects the banks' asset quality to be healthy over the next 12-18 months, helped by a supportive operating environment, improved corporate balance sheets, and better retail underwriting quality.https://t.co/kafTdj1imB

  — Mint (@livemint) January 20, 2023

• ICICI Securities upgrades its rating on AU Small Finance Bank to ‘Add’ from ‘Hold’, with a target price of Rs 700. This indicates an upside of 13.3%. The brokerage turns optimistic toward the firm’s prospects given its robust credit growth, stable net interest margins and improving provision coverage ratio. It expects the company’s net profit to grow at a CAGR of 22.7% over FY22-25.

• Amit Syngle, CEO of Asian Paints, says that the company’s sales have been impacted by extended monsoons. He adds that the margin will improve to 2%, aided by backward integration.

• #OnCNBCTV18 | #9MFY23 picture is strong, #product mix was inferior. Expect backward #integration to boost #margin by 2%, says Amit Syngle of @asianpaints pic.twitter.com/K10BZOLa5Z

  — CNBC-TV18 (@CNBCTV18Live) January 20, 2023

• Jindal Stainless, Macrotech Developers and Sterlite Technologies see a positive shift in their share prices ahead of Q3FY23 results in January.

• 360 One Wam touches an all-time high as its Q3FY23 net profit rises 16% YoY to Rs 180 crore. The rise in revenue from wealth management and asset management has aided revenue to grow 10% YoY to Rs 415 crore. The company shows up in a screener of stocks with increasing profit for the past three quarters.

• Fertilizers, Metals & Mining, and Cement & Construction   sectors rise more than 13% in the past 90 days.

• Anil Rai Gupta, Managing Director of Havells India, says B2C demand is weak amid inflationary pressures and expects it to continue over the next two quarters. He adds that the company will take price hikes of 3-4% due to the rate change in fans.

  #OnCNBCTV18 | B2C demand is weak due to inflationary trend, expect it to continue for 2 more quarters. Expect 3-4% price hikes due to fans rating change. Hope to reach normalised margin in FY24, says Anil Rai Gupta of @havellsindia #3QWithCNBCTV18 pic.twitter.com/VNy3PpVUay

  — CNBC-TV18 (@CNBCTV18Live) January 20, 2023

• Hindustan Zinc is falling in trade after its Q3FY23 net profit dips 20% YoY to Rs 2,156 as revenue decreases 2.7% YoY and expenses rise 14% YoY. The rise in expenses is because of increase in power and fuel costs. The company shows up in a screener of stocks with high momentum scores.

• Jubilant Foodworks plans a capex of Rs 900 crore funded through internal accruals over the next 12 to 18 months. It is likely to invest Rs 500 crore to Rs 600 crore in stores, including re-imaging and maintenance. The Bangalore commissary is expected to be operational by Q1FY24 with a planned investment of Rs 250 crore.

• Jefferies says that Cholamandalam Investment & Finance is a top pick in the NBFC space as they expect the company's EPS to stand at 24%. The brokerage expects a loan CAGR of 22% over FY23-25E.

  #BrokerageRadar | Jefferies on Cholamandalam Finance: Strong loan growth outlook; NIMs to bottom out#StockMarket #StocksToWatch pic.twitter.com/qECeleVUc8

  — ET NOW (@ETNOWlive) January 20, 2023

• L&T Technology Services’ Q3FY23 net profit rises 7.5% QoQ to Rs 303.6 crore and EBIT margin expands 60 bps QoQ to 18.7%. The firm’s revenue increases 2.7% QoQ, driven by its transportation and industrial products segments. The stock ranks high on the Trendlyne checklist with a score of 60.9%.

• Surya Roshni rises after it bags an order worth Rs 147.3 crore for the supply of coated and bare pipes from Indian Oil Corp. It also wins an order for power-coated GI pipes from GAIL. The company shows up in a screener of stocks with high TTM EPS growth.

• Indian rupee appreciates to 81.26 from the previous close of 81.36 against the US dollar in early trade today.

  #RupeeCheck | Rupee opens at 81.26/$ vs Thursday’s close of 81.36/$ pic.twitter.com/REgewytNRW

  — CNBC-TV18 (@CNBCTV18Live) January 20, 2023

• Porinju Veliyath sells a 0.5% stake in Kerala Ayurveda in Q3FY23, now holds 1.9% in the company.

• Vijay Kedia adds Siyaram Silk Mills to his portfolio in Q3FY23, buys a 1.1% stake in the company.

• Bharat Heavy Electricals is rising as it bags an order worth Rs 300 crore from the Gujarat State Electricity Corp. The order pertains to the renovation and modernisation of steam turbines at the Ukai Thermal Power Station in Gujarat.

• Sun Pharmaceutical Industries decides to acquire US-based Concert Pharmaceuticals for $576 million (Rs 4,674.5 crore). The company believes this will strengthen its dermatology product range in the US. The stock shows up in a screener which lists the top Indian exporters among listed companies.

• Hindustan Unilever’s Q3FY23 net profit rises 7.7% YoY to Rs 2,474 crore and revenue grows 16.1% YoY. This comes on the back of home care and beauty & personal care segments rising 31.5% YoY and 10.6% YoY respectively. The stock shows up in a screener for companies with revenue rising sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (550.85, 3.55%), Coforge Ltd. (4,102.00, 3.41%) and Hindustan Aeronautics Ltd. (2,509.50, 2.31%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (353.00, -6.50%), L&T Technology Services Ltd. (3,230.70, -4.90%) and TVS Motor Company Ltd. (969.90, -4.35%).

Volume Shockers

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

Top high volume gainers on BSE included Sobha Ltd. (617.30, 4.71%), Engineers India Ltd. (87.90, 4.46%) and Shyam Metalics and Energy Ltd. (326.15, 4.17%).

Top high volume losers on BSE were Hindustan Zinc Ltd. (353.00, -6.50%), Atul Ltd. (7,431.45, -4.13%) and PVR Ltd. (1,610.90, -3.99%).

DCM Shriram Ltd. (898.15, 0.33%) was trading at 9.8 times of weekly average. Coforge Ltd. (4,102.00, 3.41%) and Sterling and Wilson Renewable Energy Ltd. (272.60, 3.34%) were trading with volumes 9.7 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks hit their 52-week highs, while 14 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Swan Energy Ltd. (361.00, 0.74%), Engineers India Ltd. (87.90, 4.46%) and APL Apollo Tubes Ltd. (1,196.70, 1.64%).

Stocks making new 52 weeks lows included - Atul Ltd. (7,431.45, -4.13%) and Indus Towers Ltd. (171.45, -2.75%).

7 stocks climbed above their 200 day SMA including Shyam Metalics and Energy Ltd. (326.15, 4.17%) and Chemplast Sanmar Ltd. (451.10, 1.42%). 13 stocks slipped below their 200 SMA including Aditya Birla Sun Life AMC Ltd. (443.40, -3.17%) and ICICI Securities Ltd. (500.00, -2.41%).