Trendlyne Analysis

Indian indices closed flat after switching between losses and gains throughout the day. Other Asian indices closed lower, in line with the US indices, which closed in the red on Monday. European stocks traded lower than Monday’s levels amid weak global cues. US stocks fell on Monday as investors look ahead to the Fed’s interest rate decision and earnings announcements from major companies this week. The tech-heavy Nasdaq 100 index fell 2% while the Dow Jones closed 0.8% lower. Brent crude oil futures traded lower after falling nearly 2% on Monday. However crude oil prices are on an uptrend since two weeks after China reopened its economy amid softening global inflation.

Nifty Smallcap 100 and Nifty Midcap 100 closed sharply higher, despite the benchmark index closing flat. Nifty Auto and Nifty Metal closed higher than Monday’s levels. Nifty IT closed in red, taking cues from the Nasdaq 100, which closed sharply lower on Monday.

Nifty 50 closed at 17,662.15 (13.2, 0.1%), BSE Sensex closed at 59,549.90 (49.5, 0.1%) while the broader Nifty 500 closed at 14,935.50 (81.3, 0.6%)

Market breadth is ticking up strongly. Of the 1,950 stocks traded today, 1,510 were on the uptrend, and 393 went down.

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

• Sun Pharmaceutical Industries' net profit grows by 5.2% YoY to Rs 2,166 crore in Q3FY23. A rise in revenue aids the EBITDA margin to grow marginally by 30 bps YoY, despite an increase in expenses. The company shows up in a screener of stocks with increasing revenue for the past two quarters.

• Ashok Leyland, Raymond and Redington's weekly average delivery volumes rise ahead of their Q3 results tomorrow.

• The Economic Survey points out that commodity prices rose amid geopolitical tensions and adds that inflation levels are high due to elevated food and energy prices.

  #EconomicSurvey2023 points to sharp rise in commodity prices due to the Russia-Ukraine conflict; prices yet to reach pre-conflict levels. Inflation stays high, driven by high food and energy prices.
  ????Track the latest on #EconomicSurveyWithET ? https://t.co/2RUtMiuw81 pic.twitter.com/BzLWi1HXk3

  — Economic Times (@EconomicTimes) January 31, 2023

• Lupin receives tentative approval from the US Food & Drug Administration under the US President's Emergency Plan for AIDS Relief for its new drug applications for dolutegravir, emtricitabine and tenofovir alafenamide (DETAF) tablets. The tablets will be manufactured at the company’s facility in Nagpur, Maharashtra.

• Punjab National Bank is surging as its net profit rises 52.9% QoQ to Rs 628.9 crore in Q3FY23 after completely provisioning for a fraud account in Q2FY23. This leads to a fall in provisions by 3.9% QoQ. The bank's asset quality improves as its gross and net NPAs decline by 72 bps and 50 bps QoQ respectively. The company features in a screener of stocks with increasing revenue every quarter for the past three quarters.

• Finance Minister Nirmala Sitharaman tables The Economic Survey 2023. It states that India’s FY23 GDP growth is at 7% and pegs GDP for FY24 at 6-6.8%.

  #BREAKING | India Economic Survey pegs FY24 GDP growth at 6-6.8% https://t.co/fCpUtyXLt1 #Economy #EconomicSurvey #GDP #BudgET2023 #RisingBharat #BudgetWithET pic.twitter.com/qySkuxt6ec

  — Economic Times (@EconomicTimes) January 31, 2023

• Utilities, Commercial Services & Supplies, Retailing and Transportation sectors fall more than 10% in the past month.

• SRF is rising as its board of directors approves capex plans of Rs 595 crore for the production of specialty fluoropolymers and Rs 110 crore to set up a facility to produce 300 MT of SS20 per year at Dahej. It would take 24 months to produce specialty fluoropolymers and 10 months to add the proposed capacity of SS20.

• Telecom stocks like GTL Infrastructure, Optiemus Infracom, Indus Towers, Route Mobile and Tata Teleservices (Maharashtra) are rising in trade. All constituents of the broader sectoral index S&P BSE Telecom are also trading in the green.

• ICICI Direct upgrades its rating on Indraprastha Gas to ‘Buy’ from ‘Hold’ with a target price of Rs 490, indicating an upside of 16.1%. The brokerage turns positive on the firm’s prospects on the back of rising production volumes, a decline in gas sourcing costs and expansion into newer markets. It expects the company’s net profit to grow at a CAGR of 11.3% over FY22-25.

• IIFL Finance is rising as its Q3FY23 net profit grows 22.1% YoY to Rs 378.3 crore. A rise in interest and fees & commission income helps the revenue grow 17.9% YoY. The lender's asset quality improves as its gross and net non-performing assets (NPAs) fall 70 bps and 40 bps YoY respectively. The company features in a screener of stocks with improving cash flow and good durability.

• International Monetary Fund (IMF) expects India’s GDP to slow down to 6.1% in 2023 from 6.8% in 2022. It has also lowered its forecast for global growth to 2.9% in 2023.

  IMF has said that it is expecting some slowdown in the Indian economy next fiscal year & projected the growth to 6.1% from 6.8% during the current fiscal ending March 31.https://t.co/CBskY6w29n

  — Mint (@livemint) January 31, 2023

  IT stocks like Tech Mahindra, Coforge, LTIMindtree and HCL Technologies are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

• PSU Bank stocks like Punjab National Bank, Bank of Baroda, Bank of Maharashtra and Punjab & Sind Bank are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

• N Srinivasan, Managing Director of CG Power and Industrial Solutions, says the company’s overall order book is at Rs 4,100 crore. He expects revenue of above Rs 6,000 crore for FY23.

  #OnCNBCTV18 | Overall order book stands at ?4,100 cr, capex of ?125 cr announced for transformer capacity. Expect revenues of more than ?6,000 cr for FY23, says N Srinivasan of CG Power pic.twitter.com/AziJMhBQUj

  — CNBC-TV18 (@CNBCTV18Live) January 31, 2023

• Tech Mahindra’s Q3FY23 net profit marginally grows by 0.8% QoQ to Rs 1,296.6 crore despite falling attrition rates and subcontractor costs. Revenue grows by 4.6% QoQ on the back of moderate demand. The stock ranks high on Trendlyne’s checklist with a score of 52.17%.

• Kansai Nerolac Paints decides to sell its land at Kavesar, Thane, to Shoden Developers, a group company of the House of Hiranandani group, for Rs 655 crore. The total land area is around 96,180 square meters. The stock ranks high on the Trendlyne checklist score.

• Bharat Petroleum Corp’s Q3FY23 net profit falls 36.7% YoY to Rs 1,747 crore as costs increase. High crude oil prices cause raw material costs to rise 23% YoY. Reports suggest that stagnant retail prices have also hurt the company’s margins. It shows up in a screener for stocks with a declining net profit margin YoY.

• KEC International is rising as it bags orders worth Rs 1,131 crore across its various business segments. The company secures transmission & distribution contracts in India, Africa and North America. It has also won orders in its civil and cable segments.

• Larsen & Toubro’s Q3FY23 net profit rises 24.3% YoY to Rs 2,552.9 crore and revenue grows 17.3% YoY to Rs 46,389.7 crore. This growth is led by better execution of infrastructure projects and strong traction in the IT & Technology services business. The stock shows up in a screener for companies with increasing net profit sequentially for the past two quarters.

Riding High:

Largecap and midcap gainers today include Bharat Electronics Ltd. (94.95, 6.75%), Gujarat Fluorochemicals Ltd. (2,777.40, 6.70%) and Vedant Fashions Ltd. (1,186.00, 6.20%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,108.20, -10.00%), Adani Wilmar Ltd. (466.45, -5.00%) and Adani Power Ltd. (223.80, -4.99%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gujarat Ambuja Exports Ltd. (257.90, 12.62%), Kalyan Jewellers India Ltd. (117.95, 12.33%) and EID Parry (India) Ltd. (543.85, 12.20%).

Top high volume losers on BSE were BASF India Ltd. (2,439.35, -6.21%), Laurus Labs Ltd. (330.30, -3.36%) and Tech Mahindra Ltd. (1,015.00, -2.04%).

Orient Electric Ltd. (259.50, -0.75%) was trading at 15.0 times of weekly average. Century Textiles & Industries Ltd. (704.90, 5.41%) and Syngene International Ltd. (566.70, -0.12%) were trading with volumes 8.9 and 8.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Aegis Logistics Ltd. (381.65, 2.15%), AIA Engineering Ltd. (2,747.45, 3.88%) and Carborundum Universal Ltd. (972.90, 0.76%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,774.00, 3.85%) and Aurobindo Pharma Ltd. (408.15, -0.78%).

28 stocks climbed above their 200 day SMA including Bharat Electronics Ltd. (94.95, 6.75%) and Tejas Networks Ltd. (566.65, 5.84%). 4 stocks slipped below their 200 SMA including TCI Express Ltd. (1,720.00, -1.14%) and Cholamandalam Investment & Finance Company Ltd. (706.95, -0.53%).