Trendlyne Analysis

Nifty 50 closed at 17,711.45 (117.1, 0.7%), BSE Sensex closed at 60,224.46 (415.5, 0.7%) while the broader Nifty 500 closed at 14,881.00 (106.3, 0.7%). Of the 1,985 stocks traded today, 1,153 were gainers and 748 were losers.

Indian indices extended their gains from Friday and closed in the green, with the Nifty 50 closing above the key 17,700 mark. Among Nifty 50 companies, Britannia Industries fell the most and closed over 2% lower after CLSA downgraded Britannia Industries' rating to ‘Sell’, expecting high wheat and milk inflation to dent margins. 

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, following the benchmark index. Nifty Energy and Nifty Infra closed sharply higher than Friday’s closing levels. Zydus Lifesciences and Alembic Pharmaceuticals closed higher after they received USFDA approvals for their abbreviated new drug applications (ANDAs). 

European stocks traded marginally higher, as investors assessed China's modest economic growth target of 5% this year ahead of the release of Eurozone retail sales data. US indices futures traded flat as investors look ahead to US Fed Chairman Jerome Powell's two-day testimony before the US Congress on Tuesday and Wednesday, ahead of Friday’s jobs report for February.

• Analysts say that Tech Mahindra has a consensus estimate of 'Strong Buy' in the long term despite a 30% decline in price since March 2022. Analysts believe that its attractive valuation and strong base formation will help in the long term.

  Down over 30% from its March 2022 highs, Tech Mahindra may be a strong long term buy, suggest experts. @kshanand writes in #StockRadarhttps://t.co/rtdcdiVz0p

  — Economic Times (@EconomicTimes) March 6, 2023

• Money flow index (MFI) indicates that stocks like Anupam Rasayan India, Equitas Small Finance Bank, Procter & Gamble Health and Suprajit Engineering are in the overbought zone.

• Finolex Cables and Carborundum Universal hit an all-time high of Rs 847.5 and Rs 1,045.7 respectively. Finolex Cables rises for two consecutive sessions, whereas Carborundum Universal falls after hitting an all-time high in today's session.

• Oberoi Realty beats Phoenix Mills in YoY & QoQ revenue growth, broker average rating and PE ratio. But it lags in YoY profit growth, FII & MF holdings, one-year price change and broker average target upside.

• Honeywell Automation India, Abbott India, Tata Elxsi and LTIMindtree are trading above their second resistance or R2 level.

• Delhivery, Zomato and Voltas trade at a distance of 52%, 39% and 30% respectively from their 52-week highs.

• FSN E-Commerce Ventures (Nykaa) is falling as Macquarie initiates coverage on the stock with an ‘Underperform’ and a target price of Rs 70. The company faces risk in its beauty segment margin growth as it moves towards expansion in small towns. It also sees the company inching towards profitability as Nykaa ventures into mom-and-pop stores.

• Oil & Gas companies like Adani Total Gas, GAIL (India), Indraprastha Gas, Oil & Natural Gas Corp and Indian Oil Corp are rising in trade. The broader sectoral index BSE Oil & Gas is also trading in the green.

• Aptus Value Housing Finance gains over 9% in trade today. The company ranks high on Trendlyne’s Checklist with a score of 54.55%. It shows up in a screener for stocks with high Piotroski scores along with high RoE and EPS growth.

• Power stocks like JSW Energy, Adani Transmission and NTPC are rising more than 2.5% in trade today. The broader BSE Power index also rises over 2%.

• Manish Raj Singhania, President of FADA, says festivities in March will aid sales growth and adds that they are optimistic about sales in the two-wheeler and passenger vehicle segment as dealers have an inventory level of 30 days. But he emphasizes that the semiconductor crisis is not over yet.

  #OnCNBCTV18 | March has higher festive days which will aid sales. Dealers are at comfortable inventory level of 30 days in 2-wheelers & PVs. Semiconductor crisis has not been resolved completely, says Manish Raj Singhania of #FADA pic.twitter.com/D4hyIgxKlM

  — CNBC-TV18 (@CNBCTV18Live) March 6, 2023

• ICICI Securities maintains its ‘Buy’ rating on Mahanagar Gas and raises its target price to Rs 1,125 from Rs 1,050. This implies an upside of 17.2%. The brokerage remains positive about the company’s prospects as it expects healthy growth in volumes, increased market penetration, and stronger regulatory support.

• Former RBI Deputy Governor SS Mundra says that banks will soon receive many regulatory guidelines as the RBI has decided to switch to the International Financial Reporting Standards (IFRS) from the Generally Accepted Accounting Principles (GAAP). He adds that the new guidelines for provisions will have a big impact on lenders.

  #OnCNBCTV18 | The whole discussion paper is issued by #RBI. Many regulatory guidelines will come in for banks. RBI has decided to go with IFRS rather than GAAP, says SS Mundra, Former RBI Deputy Governor pic.twitter.com/gblLOuVQCu

  — CNBC-TV18 (@CNBCTV18Live) March 6, 2023

• Zydus Lifesciences is rising as it receives the final approval from the US FDA for vigabatrin oral solution, which is used to treat refractory complex partial seizures in patients two years of age and older. Its annual sales in the US till December 2022 is $233.7 million, according to IQVIA.

• Alembic Pharmaceuticals is rising as it receives final approval from the US FDA for its abbreviated new drug application (ANDA) for fluorouracil injection. The injection is used for the treatment of adenocarcinoma of the colon, rectum and breast. It has an estimated market size of $5 million for CY22, according to IQVIA.

• Bajaj Electricals is rising as it wins a project from South Bihar Power Distribution Co for the development of infrastructure for electric supply for Rohtas, Kaimur, Munger and Lakhisarai districts. The project cost is around Rs 564.8 crore. The consensus recommendation on the stock from 10 analysts is ‘Buy’.

• CLSA downgrades Britannia Industries' rating to ‘Sell’, expecting high wheat and milk inflation to dent margins. It cuts Britannia’s earnings for FY23-25 by 1-11%.

#BrokerageRadar | CLSA on @BritanniaIndLtd: Downgrade to 'Sell': High wheat and milk inflation to impact margins#StockMarket #StocksToWatch @CLSAInsights pic.twitter.com/YMivupt77M

— ET NOW (@ETNOWlive) March 6, 2023

• Olectra Greentech rises as its unit Evey Trans wins two orders worth approx Rs 1,000 crore from Telangana State Road Transport Corp for 550 electric buses. The company appears in a screener for stocks with strong annual EPS growth.

• Hitachi Energy India, LIC Housing Finance and Varun Beverages outperform the Nifty 50 index over the week post their Q3FY23 results.

• Ashoka Buildcon wins a project from the South Bihar Power Distribution Co for the development of infrastructure for the electric supply circles of East & West Bihar. The contract value is Rs 264.8 crore. The stock is trading above its second resistance or R2 level.

• Mahanagar Gas will acquire a 100% stake in Unison Enviro from its existing shareholders after getting approval from the Petroleum and Natural Gas Regulatory Board. Existing shareholders include Ashoka Buildcon and North Haven Infrastructure Fund. The transaction amounts to Rs 531 crore.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (269.45, 11.04%), Adani Enterprises Ltd. (1,982.90, 5.50%) and Adani Transmission Ltd. (781.35, 5.00%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (991.05, -3.64%), Zee Entertainment Enterprises Ltd. (195.40, -2.30%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,295.50, -2.21%).

Volume Rockets

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

Top high volume gainers on BSE included Aptus Value Housing Finance India Ltd. (280.50, 18.63%), Swan Energy Ltd. (293.05, 12.13%) and Mahanagar Gas Ltd. (985.95, 8.72%).

Top high volume losers on BSE were TTK Prestige Ltd. (755.45, -3.40%), Bajaj Electricals Ltd. (1,095.10, -0.70%) and Grindwell Norton Ltd. (1805.05, -0.58%).

Privi Speciality Chemicals Ltd. (964.25, 4.94%) was trading at 15.2 times of weekly average. BASF India Ltd. (2,424.05, 5.59%) and ZF Commercial Vehicle Control Systems India Ltd. (10650.00, 3.54%) were trading with volumes 6.6 and 6.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks took off, crossing 52-week highs, while 6 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Carborundum Universal Ltd. (997.15, -1.32%), Finolex Cables Ltd. (785.10, 1.19%) and Gujarat Pipavav Port Ltd. (111.15, 3.01%).

Stocks making new 52 weeks lows included - Bayer Cropscience Ltd. (4,190.00, -0.65%) and Cipla Ltd. (880.90, 0.26%).

33 stocks climbed above their 200 day SMA including Manappuram Finance Ltd. (110.40, 4.05%) and Balrampur Chini Mills Ltd. (376.10, 2.93%). 3 stocks slipped below their 200 SMA including Edelweiss Financial Services Ltd. (61.70, -1.28%) and Procter & Gamble Hygiene & Healthcare Ltd. (13,913.15, -1.05%).