Trendlyne Analysis

Nifty 50 closed in the red, falling below the 17,900 mark. Australia’s ASX All Ordinaries closed lower than Tuesday’s levels and Japan’s Nikkei 225 indices closed in the green. Many other Asian markets remain closed for Lunar New Year celebrations. European indices trade in the green. US indices bounced back from losses in the early session and closed flat on Tuesday. Investors look ahead to Q3FY23 earnings from major companies this week. Brent crude oil futures trade in the green and are heading into a third straight weekly gain.

Nifty Smallcap 100 and Nifty Midcap 100 close in the red and are down more than 1%, following the benchmark index. All other major sectoral indices close lower than Tuesday’s closing levels. Nifty IT closes in the red, taking cues from the tech-heavy Nasdaq 100, which closed 0.22% lower on Tuesday.

Nifty 50 closed at 17,891.95 (-226.4, -1.3%) , BSE Sensex closed at 60,205.06 (-773.7, -1.3%) while the broader Nifty 500 closed at 15,171.95 (-216.6, -1.4%)

Market breadth is overwhelmingly negative. Of the 1,955 stocks traded today, 473 were on the uptick, and 1,426 were down.

• ICICI Bank beats HDFC Bank in YoY and QoQ net profit growth, PE ratio, MF holdings and broker average target upside. But it lags in YoY and QoQ revenue growth, annual RoE, one-year price change and broker average rating.

• Aurobindo Pharma touches its one-year low of Rs 416.65 today. The stock has a medium ranking on Trendyne’s checklist, with a score of 39.13%. The stock shows up in a screener for companies with net profits declining sequentially for the past four quarters.

• Pidilite Industries, Godrej Consumer Products and Ambuja Cements are trading below their third support or S3 level as the market trades lower.

• Cipla is falling despite its Q3FY23 net profit rising 9.3% YoY to Rs 801 crore on the back of a 14.8% YoY decline in the cost of materials consumed. Revenue grows 6% YoY as its pharmaceuticals segment rises 3.9% YoY. The stock shows up in a screener for companies with declining net cash flows.

• Axis Bank, ICICI Bank and IDBI Bank’s operating profit margin and growth rise QoQ and YoY in Q3FY23.

• Tarun Sawhney, Vice-Chairman and Managing Director of Triveni Engineering, says there is margin expansion for all segments except sugar. He adds that sugar prices will rise in Q4FY23 and aid margin expansion in the segment. The profitability of the company’s sugar business is lower in Q3.

  #OnCNBCTV18 | Margin expansion was there across segments, except sugar. Looking to increase distillery run-rate to 23 cr litres from 17 cr litres. ?90 cr capex from sugar segment is mostly for cost optimisation, says Tarun Sawhney of Triveni Engineering pic.twitter.com/yagyfIxKxQ

  — CNBC-TV18 (@CNBCTV18Live) January 25, 2023

• ICICI Securities upgrades its rating on Shoppers Stop to ‘Buy’ from ‘Add’ with a target price of Rs 850. This indicates an upside of 29.7%. The brokerage believes the company presents a turnaround opportunity. It cites the firm’s increased focus on private-label brands, growth in its beauty segment and category extensions for revising its rating.

• Indus Towers, Motilal Oswal Finance and Colgate-Palmolive India's Q3FY23 net profit falls QoQ and YoY

• Rail Vikas Nigam bags an order worth Rs 38.4 crore for the provision of automatic block signalling in the Arakkonam junction-Nagari section of the Chennai division in Southern Railway. The company ranks high on the Trendlyne checklist with a score of 69.57%.

• Power stocks like CG Power and Industrial Solutions, NTPC, Power Grid Corp of India, NHPC and JSW Energy are falling in trade. The broader sectoral index BSE Power is also trading in the red.

• India's FII flows stand net negative at $1,850 million in the first half of January. The financial services sector sees the largest outflow of $823 million, while the materials sector has the largest inflow of $287 million.

  #MarketsWithETNOW | FII flows remain net negative in the first half of Jan with financials seeing the largest outflows.
  
  However, small inflows were seen in capital goods, @soumeet_sarkar is here with the details- #StockMarket #StocksToWatch pic.twitter.com/tTFeAPp9nn

  — ET NOW (@ETNOWlive) January 25, 2023

• PSU banks like Bank of Baroda, Bank of India and Canara Bank fall more than 5% in trade. The broader Nifty PSU Bank index falls 4.4% in trade.

• United Spirits is plunging as its Q3FY23 net profit falls 27.4% YoY to Rs 214.2 crore. Revenue dips 25.9% YoY, causing the EBITDA margin to decline by 20 bps YoY. The company shows up in a screener of stocks with declining quarterly net profit and profit margin (YoY).

• Nazara Technologies is rising as its Q3FY23 net profit surges 77.5% QoQ to Rs 18.1 crore. Revenue rises 19.3% QoQ, driven by the esports and gamified early learning segments. The stock shows up in a screener for companies with improving cash flows and high durability scores.

• Tata Steel is rising as 84.3 lakh shares (0.7% equity) amounting to Rs 101.8 crore change hands in a large trade.

  Tata Steel Large Trade | 84.3 lakh shares (0.7% equity) worth ?101.8 cr change hands at ?120.7/sh#BlockDeal #TataSteel pic.twitter.com/IMAfyYsVSc

  — CNBC-TV18 (@CNBCTV18Live) January 25, 2023

• Max Financial Services, Coal India and C.E. Infosystems rise 5.8%, 5.4% and 5.3% respectively over the past week, ahead of their Q3FY23 results on January 31.

• Macrotech Developers’ (Lodha) Q3FY23 net profit surges 41.7% YoY to Rs 404.5 crore as expenses see a dip of 14%. The realty company’s revenue falls 13.9% YoY but pre-sales continue to rise by 16% YoY. Abhishek Lodha, MD & CEO, says, "Demand for quality housing continues to remain strong despite the increase in mortgage rates. The housing upcycle is long-term in nature on the back of strong affordability, job creation and income growth."

• Indian rupee appreciates to 81.61 from the previous close of 81.72 against the US dollar in early trade today.

  #Rupee Check | Rupee opens at 81.61/$ vs Tuesday’s close of 81.72/$#RupeeVsDollar #USDINR #INR #USD #Dollar #USDollar pic.twitter.com/jIFtC4BeMj

  — CNBC-TV18 (@CNBCTV18Live) January 25, 2023

• Sonata Software redesignates Samir Dhir as the Managing Director & CEO of the company from Whole-time Director & CEO. The stock is trading flat and has a high Trendlyne Checklist score.

• Indus Towers posts a net loss of Rs 708 crore in Q3FY23 against a profit of Rs 1,570.8 crore in Q3FY22. This comes after the company made provisions worth Rs 2,298.1 crore for doubtful recovery of debt from Vodafone Idea. Revenue also dips 2% YoY in Q3 as collections fall short. It shows up in a screener of stocks with decreased mutual fund holdings in the past quarter.

• TVS Motor’s consolidated Q3FY23 net profit rises 21.4% YoY to Rs 300.8 crore, with revenue increasing 22.3% on the back of price hikes carried out by the company in the past quarter. Its operating margin falls to 9.1% in Q3 due to increase in expenses on raw materials and the purchase of stock-in-trade. It shows up in a screener of stocks with increasing profit over the past four quarters.

Riding High:

Largecap and midcap gainers today include TVS Motor Company Ltd. (1,037.90, 5.49%), Sona BLW Precision Forgings Ltd. (455.00, 5.18%) and Relaxo Footwears Ltd. (835.90, 2.26%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (2,517.75, -8.85%), Zomato Ltd. (47.75, -8.35%) and Ambuja Cements Ltd. (460.20, -7.77%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Saregama India Ltd. (356.45, 7.58%), KIOCL Ltd. (219.65, 5.52%) and TVS Motor Company Ltd. (1,037.90, 5.49%).

Top high volume losers on BSE were Zomato Ltd. (47.75, -8.35%), Ambuja Cements Ltd. (460.20, -7.77%) and Indus Towers Ltd. (157.90, -7.36%).

Home First Finance Company India Ltd. (794.00, 5.12%) was trading at 15.4 times of weekly average. Sundaram Clayton Ltd. (4,775.00, 0.25%) and Esab India Ltd. (4,050.00, 4.86%) were trading with volumes 12.3 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks tanked below their 52 week lows.

Stocks making new 52 weeks lows included - Atul Ltd. (6,993.20, -2.21%) and Aurobindo Pharma Ltd. (417.75, -4.68%).

6 stocks climbed above their 200 day SMA including Home First Finance Company India Ltd. (794.00, 5.12%) and Lemon Tree Hotels Ltd. (75.05, 1.76%). 27 stocks slipped below their 200 SMA including ACC Ltd. (2,165.70, -7.28%) and Container Corporation of India Ltd. (649.60, -4.52%).