Trendylne Analysis

Nifty 50 closed at 19,653.50 (107.8, 0.6%), BSE Sensex closed at 65,995.63 (364.1, 0.6%) while the broader Nifty 500 closed at 17,293.60 (97.8, 0.6%). Market breadth is in the green. Of the 1,954 stocks traded today, 1,237 showed gains, and 665 showed losses.

Indian indices extended the gains from the afternoon session and closed in the green, with the Nifty 50 closing at 19,654. The volatility index, Nifty VIX, dropped by 5.9% and closed at 10.3 points. Ujjivan Small Finance Bank's total deposits grew by 43% YoY to Rs 29,134 crore in Q2FY24, while advances rose 27% YoY to Rs 29,134 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty Pharma closed higher than Thursday’s closing levels. According to Trendlyne’s sector dashboard, realty emerged as the top-performing sector of the day, with a rise of over 2.7%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. The data released by the German Federal Statistical Office indicated that German factory orders in August rose 3.9% MoM against the estimates of 1.8%. German factory orders in July contracted by 11.7% MoM.

• Money flow index (MFI) indicates that stocks like Suven Pharmaceuticals, Gujarat Ambuja Exports, Suzlon Energy and Tata Investment Corp are in the overbought zone.

• Mahindra Holidays & Resorts rises over 7% in trade today. The company ranks high on Trendlyne’s Checklist, scoring 59.1%. It also features in a screener of consistent highest-return stocks over five years.

• Bharat Heavy Electricals rises as it wins two arbitration proceedings against Jaiprakash Power Ventures. This led the company to bag contracts for the 660 MW Jaypee Nigrie Thermal Power Project and the 250 MW Bina Thermal Power Plant. The company appears in a screener of stocks with improving RoA.

• Dabur India's management expects its revenue to grow in the mid to high single digits in Q2FY24. It also expects net profit to increase proportionally. The company features in a screener of stocks with low debt.

• PB Fintech falls as 1.1 crore shares (a 2.5% stake), amounting to Rs 871.2 crore, reportedly change hands in a bulk deal. SoftBank is the likely seller.

• Sharekhan maintains its ‘Buy’ rating on Indian Hotels Co with a target price of Rs 492, implying an upside of 16.3%. The brokerage believes the company is well-placed to benefit from the rising demand for travel in FY24, given its focus on expanding through the asset-light model, improving cash flows and strengthening of balance sheet. It expects the firm’s net profit to grow at a CAGR of 27% over FY23-26.

• Realty stocks like DLF, Godrej Properties, Sobha, Swan Energy and Brigade Enterprises are rising in trade. Barring Mahindra Lifespace Developers, all the other constituents of the broader sectoral index, Nifty Realty, are trading in the green.

• HDFC Securities maintains its ‘Buy’ rating on Navin Fluorine International with a target price of Rs 5,368. This implies an upside of 44.3%. The brokerage believes the firm’s growth momentum is intact despite the resignation of its Managing Director, Radhesh Welling. It expects growth to be driven by long-term contracts, rising contribution from the high-margin business to the sales mix and capacity expansion.

• Strides Pharma Science declines as reports suggest that 13.8 lakh shares (1.5% equity), amounting to Rs 69.1 crore, change hands in a large trade.

  Strides Pharma Large Trade | 13.75 lk shares (1.5% equity) worth ?69.1 cr change hands at an avg ?502/sh pic.twitter.com/RcHjyZTQtn

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

• Valiant Laboratories’ shares debut on the bourses at a 15.9% premium to the issue price of Rs 140. The Rs 152.5 crore IPO has received bids for 29.8 times the total shares on offer.

• Ujjivan Small Finance Bank surges as its total deposits grow by 43% YoY to Rs 29,134 crore in Q2FY24, while advances rise 27% YoY to Rs 29,134 crore.

• InterGlobe Aviation (IndiGo Airlines) rises as reports suggest that it will introduce a fuel charge of up to Rs 1,000 to offset the rising cost of aviation fuel. The fuel surcharge applies to both domestic and international routes and will take effect starting today. The company appears in a screener of stocks with improving cash flow from operations.

• HDFC Securities maintains its ‘Buy’ rating on Navin Fluorine International with a target price of Rs 5,368. This implies an upside of 44.3%. The brokerage believes the firm’s growth momentum is intact despite the resignation of its Managing Director, Radhesh Welling. It expects growth to be driven by long-term contracts, rising contribution from the high-margin business to the sales mix and capacity expansion.

• Macquarie has an ‘Outperform’ rating on Jindal Steel & Power, Tata Steel and Hindalco, while it downgrades its rating on JSW Steel to ‘Neutral’. The brokerage believes that robust domestic demand and strong steel prices augur well for the steel companies.

  Brokerage Radar | "Steel companies to benefit from strong domestic demand and strength in domestic steel prices," Macquarie notes on metals. @Macquarie pic.twitter.com/KsXB9tov0D

  — ET NOW (@ETNOWlive) October 6, 2023

• Sun Pharmaceutical Industries rises as it announces the US FDA's acceptance of its new drug, Deuruxolitinib, used to treat adults with moderate to severe alopecia areata. It appears on a screener for stocks with strong annual EPS growth.

• Foreign institutional investors sell stocks worth Rs 7,660.6 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 1.3 lakh crore from foreign investors.

• Railtel Corp of India rises as it wins a work order worth Rs 68 crore from Jammu Smart City to commission a data centre and disaster recovery centre for the Integrated Command and Control Centre.

• The RBI's Monetary Policy Committee (MPC) maintains India's real GDP growth forecast for FY24 at 6.5% while CPI inflation for Q2FY24 has been raised to 6.4%. According to RBI Governor Shaktikanta Das, challenges to the future outlook include geopolitical tensions, potential global economic recession, and irregular monsoon.

  As expected, the RBI left the repo rate unchanged at 6.5%. The MPC voted to remain focused on the withdrawal of accommodation by 5 votes to 1. CPI inflation forecast for 2023-24 has been left unchanged at 5.4%.
  
  Here are key takeaways from RBI Governor Shaktikanta Das' speech ????… pic.twitter.com/wiszgMoPUN

  — Moneycontrol (@moneycontrolcom) October 6, 2023

• KPI Green Energy rises as it bags multiple orders for the development of solar power projects, totalling 12.1 MW from domestic entities. The projects are expected to be completed in FY24 in various tranches. The company appears in a screener of stocks with strong momentum.

• Kalyan Jewellers is rising after announcing its Q2FY24 business update, as its revenue increases by 27% YoY, led by robust momentum in footfalls across Indian and Middle Eastern markets. Revenue from its Indian operations climbs 32% YoY due to healthy same-store sales. The stock shows up in a screener for companies with improving RoA over the past two years.

• Healthcare stocks like Aurobindo Pharma, Granules India, Alkem Laboratories and Dr Reddy's Laboratories are rising in trade. All constituents of the broader Nifty Healthcare index are also trading in the green.

• Adani Wilmar rises as its total standalone sales volumes grow by 11%, aided by growth in the industry essentials and food & FMCG segments. However, there's a 13% dip in standalone sales value due to a decline in the edible oil segment. The company appears in a screener of stocks with improving net cash flow.

• RBI decides to keep the policy repo rate unchanged at 6.5% during the Monetary Policy Committee meeting.

  #RBIMPC opts for status quo, keeps #reporate unchanged at 6.5 per centhttps://t.co/DArq7oimrE

  — Economic Times (@EconomicTimes) October 6, 2023

• Lupin is rising as it receives tentative approval from the US FDA for its abbreviated new drug application for tolvaptan tablets. This generic variant of Otsuka Pharmaceutical's Jynarque tablets is used for the prevention of heart failure and hormone imbalance. According to IQVIA, the drug had an estimated annual sales of $287 million in the year ending August 2023.

• Dolly Khanna buys a 0.1% stake in Talbros Automotive Components in Q2FY24. She now holds a 1.6% stake in the company.

• Bajaj Finance is rising as its board of directors approves the issue of shares worth up to Rs 8,800 crore through a qualified institutional placement (QIP).

Riding High:

Largecap and midcap gainers today include Bajaj Finserv Ltd. (1,634.65, 5.97%), General Insurance Corporation of India (225.30, 5.18%) and Godrej Properties Ltd. (1,675.00, 4.73%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (10.95, -2.23%), CG Power and Industrial Solutions Ltd. (418.75, -1.70%) and Gujarat Fluorochemicals Ltd. (2,845.50, -1.61%).

Movers and Shakers

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

Top high volume gainers on BSE included Godrej Industries Ltd. (719.10, 19.64%), Kalyan Jewellers India Ltd. (258.15, 10.13%) and Mahindra Holidays & Resorts India Ltd. (433.80, 7.64%).

Top high volume losers on BSE were BASF India Ltd. (2,506.75, -1.54%), Alembic Pharmaceuticals Ltd. (772.85, -0.39%) and Rajesh Exports Ltd. (496.95, -0.21%).

Godrej Agrovet Ltd. (515.00, 7.36%) was trading at 15.2 times of weekly average. AstraZeneca Pharma India Ltd. (4,726.10, 4.93%) and Century Plyboards (India) Ltd. (653.40, 0.97%) were trading with volumes 12.8 and 10.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Bajaj Finance Ltd. (8,168.55, 4.05%), DLF Ltd. (548.70, 4.51%) and eClerx Services Ltd. (2,147.85, 6.21%).

6 stocks climbed above their 200 day SMA including PI Industries Ltd. (3,420.70, 1.03%) and Sterlite Technologies Ltd. (159.40, 0.28%). 1 stock slipped below their 200 SMA including BASF India Ltd. (2,506.75, -1.54%).