Trendlyne Analysis

Nifty 50 closed in the green, rising above the 18,100 level. European indices traded in the green amid positive global cues. Chinese and Taiwanese markets are closed on account of the Lunar new year for the current week. Other major Asian indices closed higher, in line with US indices, which closed in the green on Friday. The S&P 500 rose 1.9%, while the Dow Jones closed 1% higher on Friday. The rally was backed by Fed Governor Christopher Waller’s comment stating central banks' rates are pretty close to sufficiently restricting inflation. The tech-heavy Nasdaq 100 index rose 2.7% backed by gains in Netflix and Alphabet. Crude oil prices traded higher after posting a second straight weekly advance last week as China's outlook brightens amid the reopening of its economy.

Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Bank closed higher than Friday’s levels. Nifty IT closed higher, taking cues from the tech-heavy Nasdaq 100, which closed in the green on Friday.

Nifty 50 closed at 18,118.55 (90.9, 0.5%) , BSE Sensex closed at 60,941.67 (319.9, 0.5%) while the broader Nifty 500 closed at 15,403.20 (55.3, 0.4%)

Market breadth is in the red. Of the 1,993 stocks traded today, 801 were on the uptrend, and 1,126 went down.

• Money flow index (MFI) indicates that stocks like CG Power and Industrial Solutions, Hindustan Copper, Max Financial Services and Oil India are in the overbought zone.

• Indian market trades in the red, underperforming global indices like Dow Jones, S&P 500 and Nasdaq in January.

  Global Equities Rally | Global risk appetite is back, but what does this mean for India? @SurabhiUpadhyay puts some key data in context pic.twitter.com/ARNYIWKM0O

  — CNBC-TV18 (@CNBCTV18News) January 23, 2023

• Torrent Power rises over 6% in trade and is one of the high-volume, high-gainer stocks today. The stock ranks high on Trendlyne’s checklist, scoring 56.52%. It features in a screener of companies with improving net cash flow over the past two years.

• Latent View Analytics, UCO Bank and Sonata Software rise 4.4%, 1.3% and 1.2% respectively over the past week, ahead of their Q3FY23 results tomorrow.

• IDFC First Bank is rising as its Q3FY23 net profit surges more than 2X YoY to Rs 604.6 crore and net interest income rises 27% YoY. Meanwhile, YES Bank falls as its Q3FY23 net profit declines 80.7% YoY to Rs 51.5 crore and provisions surge more than 2X YoY.

• Seshsagiri Rao, Joint Managing Director and Group CFO of JSW Steel, says domestic steel prices could increase further. He expects an improvement in export volumes in Q4FY23. The company announced its Q3 results on Friday.

  #EarningsWithETNOW | Seshagiri Rao of @JSWSteel says
  
  -See scope for further increase in domestic steel prices
  -Don't expect much steel price volatility in 2023
  -Could see increase in export volumes in Q4 @nikunjdalmia @AyeshaFaridi1 @avannedubash @NayantaraRai pic.twitter.com/MjxZDpQ2m9

  — ET NOW (@ETNOWlive) January 23, 2023

• Adani Green Energy's operational capacity increases by 35% YoY to 7,324 MW in 9MFY23. Its sale of energy grows by 59% YoY to 10,235 million units as the company adds new solar and wind power plants in Rajasthan and Madhya Pradesh. The company features in a screener of stocks with increasing annual net profit for the past two years.

• IT stocks like Coforge, Persistent Systems, L&T Technology Services, Tech Mahindra and Infosys are rising in trade. All constituents of the broader sectoral index Nifty IT are also trading in the green.

• Edelweiss maintains its ‘Buy’ rating on ICICI Bank with a target price of Rs 1,135. This implies an upside of 30.1%. The brokerage remains positive about the bank’s prospects on the back of its sustained growth outperformance, digital push, risk management and strong balance sheet. It expects the company’s revenue to grow at a CAGR of 17.1% over FY22-25.

• Cement stocks like UltraTech Cement, Grasim Industries, Ambuja Cements, Shree Cements and ACC are trading in the red. The broader cement & cement products industry falls over 2.5% today.

• Meghamani Organics is falling as it reports a decrease in net profit by 74% YoY in Q3FY23. The company’s revenue and EBITDA decline 13% and 21% respectively. In addition, it announces the commissioning of Phase 1 of the Titanium Dioxide (TiO2) plant at Dahej, Gujarat, with an installed capacity of 16,500 MTPA.

• Ultratech Cement is falling as its Q3FY23 net profit declines 38% YoY to Rs 1,058.2 crore. EBITDA margin falls 400 bps YoY to 15% due to a rise in the cost of raw materials, fuel and freight expenses. The company features in a screener of stocks with declining revenue for the past two consecutive quarters.

• JSW Steel turns profitable with a net profit of Rs 474 crore in Q3FY23, after posting a loss in Q2FY23. A 98.8% QoQ drop in cost of raw materials aids the EBIDTA margin to improve 7.4 percentage points QoQ to 11.6%. The company features in a screener of stocks with growth in net profit and profit margin (QoQ).

• Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank, expects loan growth CAGR of 22-25% over the next few years. He adds that the pandemic has impacted the bank’s NIM (net interest margin) and it will normalise at 7.5% and above.

  #3QWithCNBCTV18 | Expect loan growth CAGR of 22-25% over the next couple of years. NIM was impacted by weak books from pandemic issues
  
  Expect NIM to normalise at 7.5% and above, RoE will be in the range of 22-25%
  
  Chandra Shekhar Ghosh, #Bandhan #Bank to CNBC-TV18 pic.twitter.com/ASl64FV2fp

  — CNBC-TV18 (@CNBCTV18Live) January 23, 2023

• Radhakishan Damani cuts his stake in Metropolis Healthcare in Q3FY23 and now holds a stake below 1%.

• Sunil Singhania buys a 0.3% stake in Mastek in Q3FY23, now holds 3.1% in the company.

• SBI Life Insurance’s Q3FY23 net profit falls 16.4% YoY to Rs 364.06 crore. Even though net premium income rises 6.35% YoY, it falls for products across the participating segment. The non-participating segment sees an increase in net premium, with individual life growing more than 50%. The company ranks medium on the Trendlyne Checklist score.

• Indian rupee appreciates to 80.94 from Friday’s close of 81.12 against the US dollar in early trade today.

  #RupeeHigher | #Rupee opens at 80.94/$ vs Friday’s close of 81.12/$
  
  Alert : Rupee gains vs $, is below 81 for the 1st time since December 1, 2022 pic.twitter.com/y996s7kLix

  — CNBC-TV18 (@CNBCTV18Live) January 23, 2023

• Tanla Platforms falls more than 3% in trade today. The company ranks low in the Trendlyne Checklist score. It shows up in a screener of stocks with no debt.

• Reliance Industries is falling as its Q3FY23 net profit dips 14.9% YoY to Rs 15,792 crore because of an increase in the cost of materials by 8.1% YoY. However, revenue rises 15.3% YoY in Q3, with growth in revenue across all segments like oil to chemicals, oil & gas, retail and digital services. The company shows up in a screener of stocks with declining quarterly profit margin YoY.

• ICICI Bank’s Q3FY23 net profit rises 34% YoY to Rs 8,311.8 crore with net interest income increasing 34.6% YoY. However, the bank’s net provisions grow 12.5% YoY, as it adopts a more conservative approach for future contingencies. The bank also sees growth in retail, business banking and SME loans by more than 20% YoY in Q3.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (491.00, 6.74%), Coforge Ltd. (4,358.90, 6.26%) and Persistent Systems Ltd. (4,593.15, 6.24%).

Downers:

Largecap and midcap losers today include YES Bank Ltd. (18.15, -8.10%), JSW Energy Ltd. (246.85, -5.91%) and Shree Cements Ltd. (23,037.05, -5.67%).

Volume Shockers

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

Top high volume gainers on BSE included Torrent Power Ltd. (491.00, 6.74%), Can Fin Homes Ltd. (551.85, 5.90%) and Bandhan Bank Ltd. (247.95, 4.55%).

Top high volume losers on BSE were YES Bank Ltd. (18.15, -8.10%), Infibeam Avenues Ltd. (17.10, -7.82%) and Saregama India Ltd. (331.75, -7.68%).

Route Mobile Ltd. (1,142.20, -2.90%) was trading at 9.0 times of weekly average. Krishna Institute of Medical Sciences Ltd. (1,435.75, -3.37%) and Chalet Hotels Ltd. (342.00, 0.54%) were trading with volumes 7.7 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks made 52 week highs, while 16 stocks tanked below their 52 week lows.

Stocks touching their year highs included - IDFC Ltd. (87.00, -0.23%), Swan Energy Ltd. (346.75, -4.23%) and Engineers India Ltd. (88.90, 1.14%).

Stocks making new 52 weeks lows included - Atul Ltd. (7,139.95, -3.92%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,277.65, -0.90%).

9 stocks climbed above their 200 day SMA including Can Fin Homes Ltd. (551.85, 5.90%) and Au Small Finance Bank Ltd. (640.90, 3.98%). 14 stocks slipped below their 200 SMA including India Cements Ltd. (207.85, -3.44%) and The Ramco Cements Ltd. (689.90, -2.11%).