Trendlyne Analysis

Nifty 50 closed at 19396.45 (2.9, 0.0%) , BSE Sensex closed at 65,220.03 (3.9, 0.0%) while the broader Nifty 500 closed at 16,905.25 (53.2, 0.3%). Of the 1,934 stocks traded today, 1,206 were gainers and 664 were losers.

Indian indices closed flat, with the benchmark Nifty 50 index settling just below the 19,400 mark. The Indian volatility index, Nifty VIX, fell below 12 points. Glenmark Pharmaceuticals closed 2% lower after its wholly owned subsidiary in the US signed an antitrust settlement with the Department of Justice (DOJ), Antitrust Division, to resolve all court proceedings involving historical pricing malpractices by former employees.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Media and Nifty Metal closed higher than Monday’s levels. According to Trendlyne's sector dashboard, Telecommunications Equipment was the top-performing sector of the day.

Major Asian indices closed in the green, except for India’s BSE Sensex, which closed flat. European indices traded in the green. US index futures also traded higher, indicating a positive start to the trading session. However, Brent crude oil futures traded in the red, extending their losses from Monday.

• Money flow index (MFI) indicates that stocks like Solar Industries India, Emami, Shyam Metalics and Energy, and Escorts Kubota are in the overbought zone.

• Birla Cable and Dixon Technologies (India) touch their 52-week highs of Rs 298 and Rs 5,035 respectively. The former has risen 59.5% over the past month, while the latter increased by 17.8%.

• Aeroflex Industries' Rs 351 crore IPO gets bids for 6.72X the available 2.3 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 14.72X of the available 1.2 crore shares on offer.

• Pyramid Technoplast's Rs 153.1 crore IPO gets bids for 18.29X the available 75.6 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 11.71X of the available 46.1 lakh shares on offer.

• Prabhudas Lilladher lowers its 12-month Nifty 50 target to 20,735 from its earlier estimate of 21,430. The brokerage expects the domestic market to account for political risks as state and Lok Sabha elections approach. It also adds low earnings estimates due to floods and the late festive season as reasons for the target cut.

  The brokerage firm has trimmed the Nifty target primarily because of a cut in earnings and expects markets to consolidate ahead of the 2024 elections.https://t.co/IvCkw4KAVp

  — Mint (@livemint) August 22, 2023

• Newgen Software Technologies surges as it wins an international order worth $9,90,000 for licensing, product implementation, and support services.

• Telecommunication stocks like GTL Infrastructure, Tata Teleservices (Maharashtra), Mahanagar Telephone Nigam, Tata Communications and Railtel Corp of India are rising in trade. Barring Optiemus Infracom, all other constituents of the broader sectoral index, S&P BSE Telecom, are trading in the green.

• Glenmark Pharmaceuticals falls as its wholly owned subsidiary in the US signs an antitrust settlement with the Department of Justice (DOJ), Antitrust Division, to resolve all court proceedings involving historical pricing malpractices by former employees. The company will pay $30 million ( Rs 249 crore) in six instalments to the DOJ. It appears on a screener of stocks with declining quarterly net profit.

• According to reports, one crore shares (33.1% equity) of SJS Enterprises, amounting to Rs 610 crore, have changed hands in a block deal. Evergraph Holdings and Sanders Consulting are likely the sellers in this transaction.

  #SJSEnt Large Trade | 1 cr shares (33.1% equity) of worth ?610 cr change hands at ?605/sh#BlockDeal https://t.co/3H6SDbVh9k pic.twitter.com/JzOqYg4TM1

  — CNBC-TV18 (@CNBCTV18Live) August 22, 2023

• NBCC (India) surges more than 5% in trade and hits a 52-week high of Rs 51.4 per share. The stock ranks high on Trendlyne's checklist with a score of 77.3%. It is also in the strong buy zone. The company appears in a screener of stocks where analysts have upgraded their recommendations or target prices over the past quarter.

• One97 Communications (Paytm) rises as it plans to invest in artificial intelligence (AI) for the development of an artificial general intelligence software stack. It aims to help financial institutes in identifying possible risks and frauds, while also protecting them from new risks arising out of advances in AI.

• ICICI Securities initiates coverage on IIFL Finance with a ‘Buy’ rating and a target price of Rs 760, implying an upside of 28.8%. The brokerage is optimistic about the company’s growth prospects given its extensive footprint, diverse portfolio and asset-light approach. It expects the firm’s net profit to grow at a CAGR of 27% over FY23-25.

• Lemon Tree Hotels rises to its all-time high of Rs 108.5 per share as it signs two new properties in Bhubaneswar and Kasauli. The Bhubaneswar property is expected to be operational by Q4FY25 and will be managed by Carnation Hotels while the Kasauli property will be operational by Q3FY24 under Lemon Tree Hotels.

• Harsh Dugar, Executive Director of Federal Bank, notes a rise in deposit rates across the banking sector. He highlights strong demand from both rural and urban areas and expects the bank's loan growth to exceed the industry average by 4-5% and reach 18-20%. He adds that the net interest margin could be around 3.3-3.4% in FY24.

  Federal Bank Says
  ????Rural & urban demand has been quite robust
  ????Expect Loan Book to double by 2027, will outgrow industry by 4%-5%
  ????NIM would be at 3.3%-3.4% in FY24@FederalBankLtd#StockMarket #Niftyhttps://t.co/rUZ4taTvqX

  — Nigel D'Souza (@Nigel__DSouza) August 22, 2023

• Tata Motors sees seven analyst target price upgrades and one recommendation upgrade in the past month. UltraTech Cement, Maruti Suzuki, ICICI Bank and Axis Bank see six analyst target price upgrades over the same time period.

• Welspun Enterprises touches its all-time high of Rs 318.7 per share as it completes the acquisition of 50.1% stake in Michigan Engineers for Rs 137.1 crore from Authum Investment & Infrastructure and Sansaar Housing Finance.

• Patel Engineering is rising as it bags an order worth Rs 1,275.3 crore through a joint venture from the Madhya Pradesh government. The order involves the construction and maintenance of infrastructure for drinking water supply and storage. The company’s share in the joint venture is worth Rs 446.4 crore.

• Aeroflex Industries raises Rs 103.7 crore from anchor investors ahead of its IPO by allotting around 96 lakh shares at Rs 108 each. Investors include Nippon Life Insurance, Societe Generale, Bank of India Mutual Fund, Whiteoak Capital Mutual Fund and Winro Commercial India.

• Nomura maintains its ‘Buy’ rating on Bharat Forge with a target price of Rs 1,157. The brokerage believes that the company has the potential to be a major defense exporter, and will witness exponential growth. It anticipates a strong ramp-up in the defense space in FY24-25.

  Brokerage Radar | Nomura on Bharat Forge: Maintain 'Buy'; Defence segment witnessing a sharp ramp-up in FY24-25 pic.twitter.com/YKcGVhieE4

  — ET NOW (@ETNOWlive) August 22, 2023

• Adani Enterprises rises as promoter Kempas Trade & Investment buys a 2.3% stake in the company. It now holds a 69.9% stake.

• Ambuja Cements makes an open offer to acquire a 26% stake in Sanghi Industries for Rs 767.2 crore. The offer opens on September 29 and closes on October 13.

• Brigade Enterprises is rising as it enters into a sale deed to acquire a 6.5-acre land parcel in Chennai to develop a residential project. The company shows up in a screener for stocks with consistently high returns over the past five years.

• Union Bank of India’s board approves the raising of Rs 5,000 crore by issuing equity shares through the qualified institutional placement (QIP) route. The floor price is set at Rs 91.1 per share. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (347.40, 6.94%), General Insurance Corporation of India (217.05, 5.59%) and Tata Communications Ltd. (1,782.15, 4.59%).

Downers:

Largecap and midcap losers today include Colgate-Palmolive (India) Ltd. (1,939.75, -2.69%), Union Bank of India (90.00, -1.96%) and Bharat Petroleum Corporation Ltd. (346.90, -1.46%).

Volume Shockers

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

Top high volume gainers on BSE included Bharat Heavy Electricals Ltd. (111.05, 10.00%), Linde India Ltd. (5,765.75, 9.86%) and Tata Teleservices (Maharashtra) Ltd. (82.15, 8.52%).

Top high volume losers on BSE were J B Chemicals & Pharmaceuticals Ltd. (2,650.25, -0.58%), Brigade Enterprises Ltd. (589.40, -0.45%) and Solar Industries India Ltd. (4,359.40, -0.11%).

The New India Assurance Company Ltd. (131.20, 5.93%) was trading at 30.4 times of weekly average. Mahindra Lifespace Developers Ltd. (528.25, 3.51%) and General Insurance Corporation of India (217.05, 5.59%) were trading with volumes 15.9 and 11.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks made 52 week highs,

Stocks touching their year highs included - Bharat Electronics Ltd. (133.30, 3.13%), Bharat Forge Ltd. (1,006.70, 2.72%) and Bharat Heavy Electricals Ltd. (111.05, 10.00%).

17 stocks climbed above their 200 day SMA including Tata Teleservices (Maharashtra) Ltd. (82.15, 8.52%) and KNR Constructions Ltd. (270.30, 5.79%). 4 stocks slipped below their 200 SMA including Elgi Equipments Ltd. (466.40, -1.83%) and TTK Prestige Ltd. (764.80, -1.37%).