Trendlyne Analysis

Indian indices fell from their day’s high and closed flat on a volatile day of trade. European stocks traded higher than Monday’s levels. Australia’s ASX All Ordinaries and Japan’s Nikkei 225 indices closed in the green, taking cues from the US indices, which closed in the green on Monday. US stocks rose as investors looked ahead to Q3FY23 earnings from major companies this week. The tech-heavy Nasdaq 100 rose 2.2% while the Dow Jones closed 0.8% higher on Monday. Several Asian markets remain closed for Lunar New Year celebrations. Brent crude oil futures traded in the green for a fourth straight trading session.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing in the red. Nifty Energy and Nifty Metal trade lower than Monday’s closing levels. Nifty IT trades in the green, taking cues from the tech-heavy Nasdaq 100, which closed 2.2% higher on Monday.

Nifty 50 closed at 18,118.30 (-0.3, 0%) , BSE Sensex closed at 60,978.75 (37.1, 0.1%) while the broader Nifty 500 closed at 15,388.55 (-14.7, -0.1%)

Market breadth is in the red. Of the 1,953 stocks traded today, 700 were gainers and 1,176 were losers.

• Relative strength index (RSI) indicates that stocks like Max Financial Services, Oil India, Persistent Systems, Coforge and GAIL (India) are in the overbought zone.

• Colgate-Palmolive’s Q3FY23 net profit falls 3.6% YoY as the cost of materials increases 9.4% YoY. The company’s total sales have grown marginally by 0.8% YoY in Q3, despite domestic sales growing 2.3% YoY. It ranks high on the Trendlyne Checklist score.

• Maruti Suzuki is rising as its Q3FY23 net profit jumps 2.3X YoY to Rs 2,391.5 crore on the back of robust demand, softening commodity prices and cost reduction initiatives. Revenue rises 25% YoY as sales volume increases by 8.2% YoY. This stock shows up in a screener for companies with high TTM EPS growth.

• Easy Trip Planners’ board approves the acquisition of a 55% stake in Glegoo Innovations Private, an online travel company. Glegoo will use its app to connect travellers and hoteliers in real time, helping it increase its user base. Easy Trip Planners shows up in a screener of stocks with improving RoE for the past two years.

• Pharmaceuticals & Healthcare stocks like Syngene International, Zydus Lifesciences, Aurobindo Pharma, Gland Pharma and Alkem Laboratories are falling in trade. All constituents of the broader sectoral Nifty Healthcare Index are also trading in the red.

• The PLI Scheme under the Centre’s 'Atmanirbhar Bharat' covers 14 sectors with an outlay of approximately Rs 1.9 lakh crore over the past six years. The beneficiary sectors include pharma, IT hardware, textiles and auto & components.

  #MarketsWithETNOW | We have seen a lot of PLI schemes being introduced in the previous budget
  
  Sectors like autos, IT, pharma, footwear and more have gained from these schemes, @vinnii_motiwala joins in with a round-up of the PLI schemes to strengthen the 'Make in India' push pic.twitter.com/MviKL2R3EH

  — ET NOW (@ETNOWlive) January 24, 2023

• Asahi India Glass, Patanjali Foods and Tata Motors’ delivery volumes rise ahead of their results on January 25.

• Nifty 50 was trading at 18,121.90 (3.4, 0.0%) , BSE Sensex was trading at 61,024.23 (82.6, 0.1%) while the broader Nifty 500 was trading at 15,399.25 (-4.0, 0.0%)

• Market breadth is in the red. Of the 1,945 stocks traded today, 779 were on the uptick, and 1,079 were down.

• KRChoksey maintains its ‘Buy’ rating on Happiest Minds with a target price of Rs 1,158. This implies an upside of 32.4%. The brokerage expects the company’s robust deal momentum, client-centric approach and increasing focus on its digital business to drive growth in the near term. It estimates the firm’s revenue to grow at a 14.9% CAGR over FY22-24.

• Foreign institutional investors pull out Rs 16,437.1 crore from the equity market over the past 30 days, according to Trendlyne's FII dashboard. Meanwhile, index options receive the highest inflow of Rs 78,433.1 crore from foreign investors. Mutual funds invest Rs 757.8 crore in the equity market.

• Puneet Chhatwal, Managing Director and CEO of Indian Hotels Co, says that the hospitality sector’s expectations from the Union Budget 2023 are based on three key themes – growth stimulation, support in infrastructure growth and boost for tourism.

  #Budget2023 | Countdown for Union Budget begins!
  
  What are the hospitality industry's expectations from the Budget?
  
  Tune in to ET NOW as Puneet Chhatwal of @TajHotels decodes the Budget from the hospitality industry's perspective @FinMinIndia @PMOIndia #UnionBudget pic.twitter.com/szg7f3mqP3

  — ET NOW (@ETNOWlive) January 24, 2023

• Delhivery partners with Godrej Appliances to build and manage the supply chain of Godrej’s coolers business pan-India. Delhivery plans to deploy warehouses and a distribution network for better penetration of Godrej’s products. Delhivery is trading near its 52-week low.

• Torrent Pharmaceuticals gets an intimation from the US FDA classifying its inspection as Official Action Indicated (OAI) for its manufacturing facility in Gujarat. The facility had previously received Form 483 with three observations from the agency.

• Jammu & Kashmir Bank is rising as its Q3FY23 net profit grows 79% YoY to Rs 311.6 crore and net interest income rises 27% YoY. Meanwhile, Karur Vysya Bank falls as its provisions surge more than 2X YoY despite its net profit growing 56% YoY to Rs 289.3 crore.

• Gland Pharma touches an all-time low of Rs 1,308.3 as it reports a fall in Q3FY23 net profit by 15% YoY to Rs 231.9 crore. Revenue also declines 12% YoY due to an increase in lead time of processing and low off-take of key products in the US in Q1FY23. It shows up in a screener of stocks with the highest fall from their 52-week highs.

• FSN E-Commerce (Nykaa) is rising as 53.6 lakh shares (0.2% equity) amounting to Rs 68 crore change hands in a large trade.

  #Nykaa Large Trade | 53.6 lakh shares (0.2% equity) worth ?68 cr change hands at ?126.85/sh#BlockDeal pic.twitter.com/SmMdAFRzFL

  — CNBC-TV18 (@CNBCTV18Live) January 24, 2023

• Welspun Corp is rising as its associate company, East Pipes Integrated Co, bags contracts worth 569 million Saudi riyals (Rs 1,234 crore) in Saudi Arabia. The contracts pertain to the supply of steel pipes for water transmission. The stock shows up in a screener for companies with low debt.

• Dilip Buildcon’s wholly-owned subsidiary Dilip Buildcon – Skyway Infraprojects emerges as the lowest bidder for the Madhya Pradesh Jal Nigam tender. The subsidiary bags an order for the engineering, procurement, construction, testing and trial run of Rewa Bansagar. The project cost is estimated at Rs 1,947.1 crore.

• NBCC is rising as it reports its monthly business update for December 2022. The company acquires a total business of Rs 309.1 crore. The stock is trading above its first resistance or R1 level.

• K Satyanarayana Raju, Executive Director of Canara Bank, says the bank’s credit cost is at 1.2% for FY23 and will be 1.2-1.25% for FY24. He adds that the net interest margin for FY24 will be 3%. The bank reports a net profit of Rs 2,881.5 crore in Q3FY23.

  #OnCNBCTV18 | Loan mix would be 45% corporate & 55% retail going forward, looking at 14-15% loan growth for next year. We are lending to an Indian corporate for its foreign operations, says K Satyanarayana Raju of Canara Bank (@canarabank)#3QWithCNBCTV18 pic.twitter.com/T5MOVNEwUi

  — CNBC-TV18 (@CNBCTV18Live) January 24, 2023

• Tata Communication is falling as its Q3FY23 net profit marginally declines by 0.3% YoY to Rs 393.9 crore due to higher network & transmission and employee benefits expenses. Revenue rises 8.2% YoY, led by robust growth in the data services business segment.

• KEI Industries is rising as its Q3FY23 net profit increases 27% YoY to Rs 128.6 crore. Revenue is up 14% on the back of rise in revenue in the cables segment. However, other segments like stainless steel wire and EPC projects see a fall in revenue by more than 8% YoY in Q3. The stock ranks high on the Trendlyne Checklist score.

• Axis Bank’s Q3FY23 net profit surges 61.9% YoY to Rs 5,853.1 crore as net interest income rises 32% YoY. Its net interest margin expands by 73 bps YoY, and revenue grows by 28.8% YoY on the back of market share gains made in the rural and small & medium enterprises segments. The stock shows up in a screener for companies with revenue increasing sequentially for the past eight quarters.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (134.35, 7.70%), Adani Wilmar Ltd. (572.65, 4.90%) and General Insurance Corporation of India (184.20, 4.36%).

Downers:

Largecap and midcap losers today include Tata Communications Ltd. (1,324.60, -4.27%), Syngene International Ltd. (581.05, -3.99%) and Delhivery Ltd. (312.35, -3.82%).

Movers and Shakers

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

Top high volume gainers on BSE included Route Mobile Ltd. (1,229.75, 7.67%), Happiest Minds Technologies Ltd. (876.70, 6.22%) and Sonata Software Ltd. (624.20, 5.24%).

Top high volume losers on BSE were SBI Cards and Payment Services Ltd. (745.00, -2.89%), Medplus Health Services Ltd. (616.00, -2.43%) and Axis Bank Ltd. (910.20, -2.41%).

Chalet Hotels Ltd. (357.10, 4.42%) was trading at 13.2 times of weekly average. Zensar Technologies Ltd. (228.00, 2.98%) and Eureka Forbes Ltd. (519.05, 0.21%) were trading with volumes 9.1 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52 week highs, while 13 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - 360 One Wam Ltd. (1,947.85, -0.12%) and Lloyds Metals & Energy Ltd. (282.95, -2.40%).

Stocks making new 52 weeks lows included - Indus Towers Ltd. (170.45, -1.42%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,271.25, -0.50%).

9 stocks climbed above their 200 day SMA including Maruti Suzuki India Ltd. (8,698.80, 3.35%) and Tata Motors Limited (DVR) (217.35, 2.57%). 18 stocks slipped below their 200 SMA including Syngene International Ltd. (581.05, -3.99%) and Balrampur Chini Mills Ltd. (373.60, -3.38%).