Trendlyne Analysis

Nifty 50 closed in the red after falling nearly 350 points from the day's high. However, Sensex rose over 150 points and closed in the green on a volatile day of trade. Markets showed mixed sentiments toward Finance Minister Nirmala Sitharaman's last full year’s budget before the elections in 2024.

Major Asian indices close higher, in line with the US indices, which also closed in the green on Tuesday. European indices traded in the green amid positive global cues. US stocks rose on Tuesday ahead of the US Fed rate hike decision. Analysts expect the Fed to announce a 0.25% interest rate hike, its smallest increase since March 2022. The tech-heavy Nasdaq 100 rose 1.6% while the Dow Jones settled 1.1% higher. Brent crude oil prices rebounded on Tuesday after falling over 2% on Monday due to demand concerns. In January, crude oil prices remained volatile as traders assessed China’s economy reopening amid demand concerns due to slowing global economic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. However, Nifty FMCG closed higher. All other major sectoral indices closed in the red post the unveiling of the budget. Nifty IT closed in the green, taking cues from the Nasdaq 100, which rose over 1% on Tuesday.

Nifty 50 closed at 17,616.30 (-45.9, -0.3%), BSE Sensex closed at 59,708.08 (158.2, 0.3%) while the broader Nifty 500 closed at 14,847.65 (-87.9, -0.6%)

Market breadth is highly negative. Of the 1,955 stocks traded today, 538 showed gains, and 1,376 showed losses.

• SBI Life Insurance sees a short buildup in its February 23 future series as its open interest rises 33% with a put-call ratio of 0.42.

• HDFC Life Insurance falls 12% in trade, nearing a 52-week low after the revision of income tax slabs in the Union Budget. Reports suggest that this would impact taxpayers’ decisions on buying high-premium products in the insurance market. The stock is trading below its third support or S3.

• Green energy stocks like JSW Energy, Sterling and Wilson Renewable Energy, Inox Wind and Inox Wind Energy rise post announcement of an outlay of Rs 20,700 crore, including the Centre's support of Rs 8,300 crore, for the construction of an interstate transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh.

• Maruti Suzuki’s January total wholesales rise 11.8% YoY to 1,72,535 units, led by 14.3% growth in domestic passenger vehicle sales. Utility and mini-segment cars see healthy growth in sales. The stock shows up in a screener for companies with high TTM EPS growth.

• Medplus Health Services, Tata Power Co and Emami rise 3.8%, 3.7% and 3.9% respectively over the past week, ahead of their Q3FY23 results on Friday.

• ICICI Securities upgrades its rating on Indian Hotels Co to ‘Buy’ from ‘Add’ and increases the target price to Rs 399 from Rs 366. This implies an upside of 23.7%. The brokerage cites continued demand momentum, strong leisure travel and increasing business travel for revising its recommendation and target price. It expects the company’s revenue to grow at a CAGR of 31.2% over FY22-25.

• Punjab National Bank, Trident and Tech Mahindra's Q3FY23 net profit falls 43%, 32% and 5.3% YoY respectively

• NCC receives four new orders worth Rs 1,755 crore in January from state government agencies pertaining to the electrical division.

• India’s manufacturing PMI falls to a three-month low of 55.4 in January, compared to 57.8 in December 2022. However, the reading remains above 50 for the 19th consecutive time.

  #JustIN | India January manufacturing #PMI at 55.4 Vs 57.8 (MoM)#BudgetWithCNBCTV18 pic.twitter.com/JVmNFXwx94

  — CNBC-TV18 (@CNBCTV18Live) February 1, 2023

• Power Grid Corp of India’s Q3FY23 net profit rises 10.7% YoY to Rs 3,645.3 crore and revenue grows 7.8% YoY. This growth comes on the back of a healthy performance in the transmission segment. The stock shows up in a screener for companies with revenue increasing sequentially over the past four quarters.

• GST revenue collections rise 24% to Rs 1.55 lakh crore in January, crossing the Rs 1.50 lakh crore mark for the third time.

  GST collection at Rs 1.55 lakh crore in January, second highest-ever https://t.co/efbKEoKaUa

  — TOI Business (@TOIBusiness) January 31, 2023

• Bajaj Auto's total monthly wholesales in January decline 21% YoY to 2.9 lakh units due to a 25% YoY fall in two-wheeler sales. Total domestic wholesales rise 16% YoY, while total exports fall 47% YoY. Two-wheeler exports and commercial vehicle exports dip 46% and 53% YoY respectively. The stock shows up in a screener for companies with strong momentum.

• ACC trades flat as its Q3FY23 net profit falls 61% YoY to Rs 110.45 crore on the back of increasing costs for the company. Purchase of stock expenses rises 2X YoY with power, fuel and raw material costs rising 20% in Q3. The company’s revenue also increases 7% on an increase in sales volumes. It shows up in a screener of companies with no debt.

• Global indices like Dow Jones, S&P 500 and Nasdaq close in the green in the previous trading session. Asia-Pacific markets also trade higher as investors look ahead to the US Federal Reserve’s decision on rate hikes.

  #GlobalMarkets largely closed in the green. Asia-Pacific shares trade higher as investors gear up for Fed rate hike decision #MarketsWithETNOW #DowJones #CAC #StocksToWatch pic.twitter.com/UFHbhRuEJv

  — ET NOW (@ETNOWlive) February 1, 2023

• Porinju Veliyath adds Lakshmi Automatic Loom Works to his portfolio in Q3FY23, buys a 1.1% stake in the company.

• Rakesh Jhunjhunwala's portfolio buys a 0.4% stake in Karur Vysya Bank in Q3FY23, now holds 4.7% in the company.

• Coal India’s Q3FY23 net profit surges 70.1% YoY to Rs 7,755.6 crore on the back of higher realisations and high premiums in the e-auction sale. Revenue grows by 23.7% YoY led by strong volume growth. The company shows up in a screener for stocks in the PE Buy zone with high durability and rising momentum scores.

Riding High:

Largecap and midcap gainers today include Indian Hotels Company Ltd. (326.70, 8.54%), Cholamandalam Investment & Finance Company Ltd. (749.80, 6.06%) and Dixon Technologies (India) Ltd. (2,806.60, 4.66%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (2,135.35, -28.20%), Adani Ports & Special Economic Zone Ltd. (495.15, -19.18%) and Ambuja Cements Ltd. (334.10, -16.72%).

Movers and Shakers

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

Top high volume gainers on BSE included Indian Hotels Company Ltd. (326.70, 8.54%), EIH Ltd. (175.45, 7.64%) and Borosil Renewables Ltd. (509.60, 6.86%).

Top high volume losers on BSE were ICICI Prudential Life Insurance Company Ltd. (401.95, -11.15%), HDFC Life Insurance Company Ltd. (515.70, -10.91%) and Max Financial Services Ltd. (752.95, -9.90%).

Avanti Feeds Ltd. (384.60, -0.08%) was trading at 13.9 times of weekly average. Cholamandalam Financial Holdings Ltd. (597.00, 0.18%) and Lemon Tree Hotels Ltd. (80.95, 5.82%) were trading with volumes 7.7 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks overperformed with 52-week highs, while 14 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Carborundum Universal Ltd. (975.35, 0.25%), IDFC Ltd. (84.35, -1.63%) and Indian Bank (292.75, -3.94%).

Stocks making new 52 weeks lows included - Adani Ports & Special Economic Zone Ltd. (495.15, -19.18%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,250.00, 0.30%).

25 stocks climbed above their 200 day SMA including EIH Ltd. (175.45, 7.64%) and Cholamandalam Investment & Finance Company Ltd. (749.80, 6.06%). 24 stocks slipped below their 200 SMA including HDFC Life Insurance Company Ltd. (515.70, -10.91%) and Max Financial Services Ltd. (752.95, -9.90%).