Trendlyne Analysis

Nifty 50 closed at 17,844.60 (-99.6, -0.6%), BSE Sensex closed at 60,691.54 (-311.0, -0.5%) while the broader Nifty 500 closed at 14,938.65 (-65.3, -0.4%). Of the 1,971 stocks traded today, 675 were on the uptrend, and 1,237 went down.

Indian indices settled in the red, with the volatility index rising over 2%. The Nifty 50 fell nearly 100 points and closed below the 17,900 mark. Samvardhana Motherson International rose 2.5% after the company announced that it acquired Germany-based SAS Autosystemtechnik for around Rs 4,789 crore. KEC International also rose sharply as it won new orders worth Rs 3,023 crore across its various businesses.

Nifty Midcap 100 closed marginally higher, despite the benchmark index closing lower. However, Nifty Smallcap 100 pared its gains and settled in the red. Major sectoral indices closed in the red except for Nifty IT, which closed 0.5% higher.

Among major Asian indices, only Indian indices closed in the red. European stocks traded flat to lower, following the US indices futures. Brent crude oil futures traded higher after falling 4% in the past week as traders assessed the US fed’s rate hike trajectory, which could impact economic growth.

• Relative strength index (RSI) indicates that stocks like ZF Commercial Vehicle Control Systems India, Finolex Cables, Sonata Software and Blue Star are in the overbought zone.

• Tata Motors is rising as it signs an MoU with Uber to supply a fleet of 25,000 XPRES–T electric vehicles. They will be used in Uber's premium category service across Delhi, Mumbai and Kolkata, among other cities. Tata Motors will supply the vehicles in a phased manner from February.

• CreditAccess Grameen, Happiest Minds Technologies, Star Health and Allied Insurance and Kalyan Jewellers India are trading above their third resistance or R3 level.

• Sumitomo Chemical India rises more than 11% in trade today and 6.5% over the past week. The stock ranks high on Trendlyne’s checklist, scoring 73.9% and features in a screener of companies with RoCE improving in the past two years.

• Rites secures an order worth Rs 76.1 crore pertaining to automatic signalling with continuous track circuiting and other associated services on the Dhaulpur-Gwalior section of the Jhansi division in the North Central Railway. The stock shows up in a screener for companies with zero promoter pledges.

• PSU banks like Punjab & Sind Bank, UCO Bank, Bank of Maharashtra, Bank of Baroda and Indian Overseas Bank are falling. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the red.

• Commercial Services & Supplies, Utilities and Transportation sectors fall more than 14% over the past month.

• Cipla is plunging as it receives Form 483 with eight observations from the US FDA for its Pithampur manufacturing facility. The form has been issued after the US FDA conducted a current good manufacturing practices (cGMP) inspection on the facility from February 6 to 17.

• Prashant Pitti, co-founder of Easy Trip Planners, expects the company’s margins to hover around 40-45% for FY23 and rise back to 50% in the next few years.

  #OnCNBCTV18 | Expect gross #margin to continue to improve going forward. #Expenses needn’t rise at the same rate as revenues go higher. As #international bookings go higher, expect margin to improve further, says Prashant Pitti (@ppitti) of Easy Trip pic.twitter.com/uw0xxBVUB1

  — CNBC-TV18 (@CNBCTV18Live) February 20, 2023

• Geojit BNP Paribas upgrades its rating on UNO Minda to ‘Buy’ from ‘Add’ but reduces the target price to Rs 586 from Rs 634. This implies an upside of 15.1% from the current market price. The brokerage believes the company’s diversified portfolio and robust order wins will drive healthy growth in the coming quarters. It expects the firm’s revenue to grow at a CAGR of 15.9% over FY23-25.

• Prince Pipes & Fittings' promoters Vipul Jayant Chheda and Parag Jayant Chheda sell 1.2% and 0.7% stakes respectively in the company in a bulk deal on Friday.

• Bharat Dynamics wins an export order worth $255 million. The order will be executed subject to government clearances.

• Oil prices rise and trade around the $83 per barrel mark amid concerns about interest rate hikes. While zinc prices increase, aluminium prices fall due to weak demand in China.

  #CommodityCornerWithETNOW
  
  -Oil rose on Monday, recouping from losses
  -Gold hovered around 6-week low on Monday
  -Aluminum prices pressured by weak demand in China@vinnii_motiwala #Oil #OilPrices #BrentCrude pic.twitter.com/1EedX4xFEi

  — ET NOW (@ETNOWlive) February 20, 2023

• Sun Pharmaceutical Industries acquires a 26.1% stake in Agatsa Software and 27.4% in Remidio Innovative Solutions for a total consideration of Rs 179.9 crore. Agatsa Software is an early-stage digital diagnostic devices company and Remidio Innovative Solutions provides products that enable the early detection of eye diseases.

• Pennar Industries is rising as it bags orders worth Rs 851 crore across various business verticals. The company ranks high on Trendlyne’s checklist with a score of 78.26%. The stock also shows up in a screener for companies with high TTM EPS growth.

• Ajay Patil, CFO of Cummins India, says there has been strong growth in demand across domestic and international markets in Q3FY23. He adds that the company aims to maintain the growth momentum.

  #EarningsWithETNOW | Ajay Patil of Cummins India says
  
  -Witnessing demand growth across all geographies
  -Endeavour to sustain growth momentum
  -See fairly steady demand from export perspective@nikunjdalmia @avannedubash @Cummins #StocksToWatch pic.twitter.com/OQdoUZKpWk

  — ET NOW (@ETNOWlive) February 20, 2023

• KEC International rises as it wins new orders worth Rs 3,023 crore across its various businesses. The orders include executing infra works in the water pipeline and commercial building segments in India, transmission and distribution projects in the Americas and various types of cables in India and overseas.

• Dilip Buildcon is rising as its joint venture receives an order worth Rs 1,947.1 crore from the Madhya Pradesh Jal Nigam, Bhopal. The order pertains to the engineering and construction of the Rewa Bansagar multi-village scheme. The contract also includes a trial run with operations and maintenance of the water supply scheme for 10 years.

• Ajit Venkataraman, CEO of Finolex Industries, says the company reported its highest volumes in Q3FY23. He adds that Q4 and Q1 are strong quarters usually but Q4FY23 will be muted for the company.

  #OnCNBCTV18 | We are looking at #volumes of around 3 lakh tonnes in #FY23. Held onto high value #inventory when prices were going down. Normalised #margin should be around ?10/kg in the pipes & fitting #business, says Ajit Venkataraman of Finolex Industries pic.twitter.com/bVkQuMzxrg

  — CNBC-TV18 (@CNBCTV18Live) February 20, 2023

• United Breweries is falling as its Managing Director and Chief Executive Officer Rishi Pardal resigns on Thursday and accordingly, his six-month notice period commences.

• Crisil’s Q4FY22 (the company follows the calendar year of January-December) net profit falls by 6.3% YoY to Rs 158 crore due to higher employee costs and other expenses. However, revenue rises 16.5% YoY led by healthy growth in the research, analytics and solutions segment. The stock shows up in a screener for companies with no debt.

• Samvardhana Motherson International signs an agreement to acquire a 100% stake in SAS Autosystemtechnik (SAS) at an enterprise value of 540 million euros (Rs 4,790 crore). The company will fund the acquisition through a mix of debt and internal accruals. The stock shows up in a screener with revenues increasing sequentially over the past four quarters.

Riding High:

Largecap and midcap gainers today include Star Health and Allied Insurance Company Ltd. (566.20, 11.23%), Zomato Ltd. (54.60, 5.41%) and Adani Power Ltd. (162.90, 5.00%).

Downers:

Largecap and midcap losers today include Cipla Ltd. (964.00, -6.02%), Adani Enterprises Ltd. (1,621.45, -5.88%) and Adani Transmission Ltd. (874.40, -5.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Star Health and Allied Insurance Company Ltd. (566.20, 11.23%), Sumitomo Chemical India Ltd. (475.70, 11.16%) and Sonata Software Ltd. (735.85, 8.21%).

Top high volume losers on BSE were Cipla Ltd. (964.00, -6.02%), Tata Investment Corporation Ltd. (2,114.00, -4.49%) and V-Guard Industries Ltd. (245.15, -1.82%).

Happiest Minds Technologies Ltd. (905.55, 6.45%) was trading at 12.4 times of weekly average. Cera Sanitaryware Ltd. (6436.00, 8.16%) and KEC International Ltd. (488.45, 2.77%) were trading with volumes 9.2 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks overperformed with 52-week highs, while 16 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Bosch Ltd. (18,148.00, 0.74%), Cera Sanitaryware Ltd. (6,436.00, 8.16%) and Persistent Systems Ltd. (5,062.05, 3.09%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (874.40, -5.00%) and Bata India Ltd. (1,434.05, -0.42%).

13 stocks climbed above their 200 day SMA including Sumitomo Chemical India Ltd. (475.70, 11.16%) and Allcargo Logistics Ltd. (364.25, 6.16%). 19 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.55, -3.93%) and Vedant Fashions Ltd. (1,210.35, -2.57%).