Weekly Trading Diary: 17th to 21st January 2022

Tradingqna · January 16, 2022, 11:55am

A thread for discussing all your trades, strategies, ideas, news, stories, etc.

Indian equity benchmarks extended their gains for the fourth consecutive week. Sensex ended the week above 61k, rising around 2,5% for the week. Nifty too gained around 2.5% closing the week well above the 18K mark.

Apart from the Nifty FMCG index, all sectoral indices closed in green. Nifty Energy was the top gaining sector, rallying over 5.5%, followed by Realty (+4.9%) and PSU Bank (+4.1%).

Here’s how the major global markets performed over the past week:

IPOs

Primary market will be gearing up for action again as IPO of ACG Transact Technologies opens for subscription on January 19. The price band for the IPO is fixed at Rs. 166 - 175 and will close on January 21. More on ACG Transact Technologies IPO here: Everything You Need to Know About the AGS Transact Technologies IPO

Corporate Earnings to watch out for;

17th Jan	18th Jan	19th Jan	20th Jan	21st Jan	22nd Jan
Ultratech Cement	Bajaj Finance	Bajaj Auto	Bajaj Finserv	Bandhan Bank	ICICI Bank
Tatva Chintan Pharma	General Insurance Corp.	Oracle Financial Services	Bajaj Holdings	Gland Pharma	Yes Bank
Nazara Technologies	ICICI Prudential	ICICI Lombard	Biocon Limited	HDFC Life Insurance Company
	Just Dial	JSW Energy	Century Textiles	IDBI Bank
	L&T Technology Services	LIC Housing Finance	Container Corporation of India	Vodafone Idea
	Tata Elxsi	Larsen & Tubro Infotech	Havells India	JSW Steel
	Trident	Syngene International	Hindustan Unilever	Kajaria Ceramics
		Tata Communications	Asian Paints	L&T Finance Holdings
			MphasiS Limited	Polycab India
			Persistent Systems	PVR
				Reliance Industries
				SBI Life Insurance Company

Key economic events for the week;

	17th Jan		18th Jan		19th Jan		20th Jan		21st Jan
China	Industrial Production (DEC)	Japan	BoJ Monetary Policy Statement	US	Housing Sarts and Building Permits (DEC)	US	Jobless Claims	Britain	Retail Sales (DEC)
	GDP		Industrial Production (NOV)	Britain	CPI Inflation (DEC)		Home Sales
Eurozone	CPI Inflation (DEC)			Germany	CPI Inflation (DEC)		Crude Oil Inventories
						Japan	Trade Balance (DEC)
						China	PBoC Loan Prime Rate
						Eurozone	ECB Monetary Policy Meeting Minutes

Tradingqna · January 17, 2022, 1:18pm

Benchmark indices ended the choppy session on a positive note. Nifty closed the day higher by 0.3% while Sensex managed to gain 0.15%.

Brent Crude: 85.82 -0.28%

USD-INR Spot: 74.2375 +0.12%

India 10Y bond yield: 6.637% +0.84%

Nifty Auto was the top performing sector, rising by over 2%, followed by Realty and Energy, both up by around 1.2%. Nifty Pharma was the top dragger, down by around -0.75%.

Amongst the F&O stocks

Apollo Tyres was the top gainer. The company acquired 27% stake in CSE Deccan Solar.
Granules was the top loser.

Earnings Update:

UltraTech Cement’s Q3 profit up 7.9% at Rs 1,710.14 crore, net sales rise 5.9%.

HCL Tech’s profit comes in at Rs 3,442 crore, revenue grows to Rs 22,331 cr.

HDFC Bank’s net profit increased 18% to ₹10,342.20 cr YoY while net interest income increased 13% to ₹18,443.48 cr.

In the news

Passenger vehicle sales dip 13% to over 2.19 lakh units in Dec: SIAM

NTPC Ltd is looking to raise external commercial borrowing (ECB) in the form of term loan amounting to $500 million plus green shoe option of $250 million.

Maruti Suzuki increased prices of its models by up to 4.3 per cent with immediate effect to partially offset the impact of the rise in input costs. Stock surged by over 2%.

Hero MotoCorp gained by over 5% after it announced a new investment of up to Rs 420 crore in Ather Energy.

Tech Mahindra announced acquisition of 100% stake in Europe-based firm CTC and 25% in two IT platforms for a total of €330 million.

Around the world

China’s central bank on Monday cut the borrowing costs of its medium-term loans for the first time since April 2020, defying market expectations, to cushion any economic slowdown.

JPMorgan stock fell by 6% despite record $48.3bn annual profit as company warns of missed target as costs jump and deals slowdown. Plots ‘astonishing’ $12bn tech spend to beat fintechs. Story here.

Prakashsingh · January 18, 2022, 4:13am

I’m watching only one thing globally and even here… YIELDS…Should be a very interesting day today.

yolotrader · January 18, 2022, 7:09am

manage positions accordingly.

Prakashsingh · January 18, 2022, 7:17am

Headlines is coming on twitter as important economic issue . Wonder whats so important in terms of economic issue before the all important event (budget)

Tradingqna · January 18, 2022, 1:18pm

Nifty and Sensex plunged in final hours of trading, following weakness in global markets. Dow and Nasdaq futures traded low, indicating a gap-down start for the US markets.

Brent Crude: 87.62 +1.32%
USD-INR Spot: 74.57 +0.45%
India 10Y bond yield: 6.627% -0.14%

Day trend:

All sectoral indices closed in red. Nifty Realty, Auto, and Metal were the top draggers, falling by over -2% each.

Amongst the F&O stocks

Cholamandalam Finance was the top gainer.
Ambuja Cements was the top loser.

Earnings Update:

ICICI Securities posted a growth of 42% in net profit to Rs. 380 crore for the quarter ended December.

TV18 Broadcast Q3 Results: Net profit falls 17.4% to Rs 311.5 crore YoY

In the news

Mobile phone manufacturers Apple and Samsung will locally manufacture smartphones worth around $5billion in year 2021-22 under the PLI scheme, exceeding the target set by the central government by over 50%.

Retail arm of Reliance picked up a 54% stake in robotics startup Addverb Technologies for $132 million.

CRISIL says that the COVID19 third wave can slash 200 bps from the growth rate in AUM of housing finance companies in financial years 2021-22 & 2022-23.

Gems and Jewellery Export Promotion Council (GJEPC) has urged Govt. to reduce import duty on gold to 4% and a special package for the sector in the forthcoming Budget to boost shipments.

Around the world

Brent oil hits the highest level in more than 7 years on growing demand optimism, easing concerns about the Omicron Covid variant and geopolitical tensions.

China’s yuan hit the highest level against the dollar in more than three years on Tuesday, as trade settlement inflows driven by robust exports offset the Chinese currency’s dwindling yield advantage.

Prakashsingh · January 19, 2022, 3:34am

Worked out pretty well. Selling zone is btwn 18160-200 today, with yesterday’s high as positional stop for trgts below 18000.

With bajaj finance coming up with good results, financials may outperform and IT and high PE stocks may see some downside.

Prakashsingh · January 19, 2022, 12:11pm

Market made a low of 17884. As expected in the morning, IT and high PE stocks (fmcg) took a beating today. Have a great evng folks. we are heading towards an interesting 2 week period for markets

Tradingqna · January 19, 2022, 1:36pm

Benchmark indices declined sharply for the second straight session following weak global cues. The Dow & Nasdaq futures are slightly higher, indicating a good start for US markets.

Brent Crude: 88.3 +0.90%
USD-INR Spot: 74.42 -0.19%
India 10Y bond yield: 6.599% -0.42%

Day’s trend:

Mixed performance across sectors, with Nifty PSU Bank index climbing more than 2%, while substantial selling on FMCG and IT, with IT being the worst performer, down 2.13%.

Amongst the F&O stocks

Biocon Limited was the top gainer.
L&T Technology Services was the top loser.

Earnings Update:

JSW Energy’s consolidated net profit comes in at Rs. 324 cr vs Rs. 123.5 cr YoY; EBITDA up 31% at Rs. 791.1 cr vs Rs. 603 cr YoY.

Sterlite Tech reports Net loss at Rs 137.1 cr vs profit of Rs 86.6 cr (YoY)

Bajaj Finance posted a net profit of Rs. 2125 cr, up 85% YoY.

ICICI Lombard’s profit fell by 29% to Rs 317.5 cr. revenue rose 1% to Rs 3,854 crore for Q3FY22.

Tata Elxsi reported ₨ 635.4 crores of revenue for Q3FY22, a growth of 6.7% QoQ. Net profit for the quarter stood at Rs. 151 cr. up 20.4% QoQ and 43.5% YoY.

In the news

Hero Electric, Mahindra ink pact to collaborate in EV space. As part of the partnership, Mahindra Group will manufacture Hero Electric’s electric bikes to meet the growing demands of the market, the companies said in a joint statement.

The Cabinet approved sanction of Rs 973.74 crore to State Bank of India (SBI) as reimbursement related to loan moratorium that was implemented in 2020 amid the pandemic.

Around the world

Microsoft has agreed to buy Activision Blizzard in an all-cash transaction valued at $68.7 billion, which would be its largest-ever and the biggest gaming industry deal.

Prakashsingh · January 20, 2022, 5:16am

We are nearing the trgts as expected in this trade setups and I have started part booking the position. I will make a full exit now.

Time starts to slowly build longs now btwn 17800-650

Tradingqna · January 20, 2022, 12:54pm

Nifty and Sensex saw sharp decline for the third straight day. Both indices shedding another percent each. US markets look set for a steady start.

Brent Crude: 88.22 -0.25%%
USD-INR Spot: 74.5 +0.10%%
India 10Y bond yield: 6.608% +0.15%

Day’s trend:

All sectoral indices apart from Metal and Realty closed the day in red. IT and Pharma were the top losers, both sinking by over -1.6% each.

Amongst the F&O stocks

Chola Investment & Fin. was the top gainer.
Oracle Financial Services tumbled by over -7% after posting poor Q3 performance.

Earnings Update:

HUL’s net profit rose by 17% to Rs 2,243 cr YoY; volume growth came in at 2%.

Asian Paints net profit down 18.5% at Rs. 1,031 cr vs Rs. 1,265 cr YoY; EBITDA margin at 18.1% vs 26.3% YoY.

Bajaj Auto’s net profit contracted 22% YoY to Rs. 1,214 crore due to weak domestic volumes.

Bajaj Finserv’s net profit declines 3% YoY to Rs. 1,256 crore; revenue up 10% YoY.

In the news

PTC India Financial Ltd tanks over 18% as three independent directors of PTC Financial Services resign citing governance issues.

Natco Pharma signs non-exclusive licensing agreement with Medicines Patent Pool to manufacture and sell Molnupiravir Capsules in the Indian market for treatment of COVID-19.

Digital payments across the country registered a growth of nearly 40 per cent in a year through September 2021 as per latest data released by RBI.

Around the world

Norway’s central bank says it’s on track to raise borrowing costs in March, citing a continued upswing in the oil-rich economy and signaling less worry over the resurgent coronavirus.

The Russian ruble slides after U.S. President Joe Biden said he thinks Moscow will “move in” on Ukraine, fueling concern tougher sanctions could be on the way.

Turkey plans to inject $3.8 billion into state banks to ensure they keep lending to businesses after the lira’s record drop eroded their buffers.

ilearnbydoing · January 20, 2022, 2:00pm

I have started trading in options, mostly lost big chunk of amount while buying premium.
See the chart of Nifty today

I often noticed on expiry most often nifty rise at around 3pm sharp.

is there any specific event happens during the time. Is it usual?

just curious.

Prakashsingh · January 21, 2022, 3:54am

Market is kind enough to come even down to 17540-500 levels. I like it when there is blood on the street. Bargain bets in the market in stocks are temptingly high.

Tradingqna · January 21, 2022, 1:30pm

Equity benchmarks extended the losses for fourth straight session. Down by around -3.3% for the week, snapping four week gaining streak.

US markets too look set for subdued opening as Dow and Nasdaq futures trade lower.

Brent Crude: 88.22 -0.25%%
USD-INR Spot: 74.1 -0.11%%
India 10Y bond yield: 6.621% +0.20%%

Nifty FMCG was the only sectoral index managing to close the day in green. All other sectors ended on negative note with Nifty Media and PSU Bank index dipping by over -3% each.

Amongst the F&O stocks

Bajaj Auto was the top gainer.
Polycab was the top loser, down by over 6% after muted Q3 results.

Earnings Update:

JSW Steel’s consolidated net profit is up by 69.2% at 4,516 cr vs 2,669 cr YoY; EBITDA margin at 24% vs 27.2% YoY.

Biocon’s net profit rose 11% YoY to Rs. 187 cr in Q3FY22 led by growth across verticals. Revenues grew 18% YoY to Rs. 2,223 cr in Q3FY22 compared to Rs 1,885 crore in Q3FY21.

Gland Pharma’s net profit up 33.8% at Rs. 273 cr vs Rs. 204 cr YoY; EBITDA margin comes in at 32.8% vs 30.7% YoY.

SBI Life’s net profit rises 56% YoY to Rs. 364 cr; net premium income up 31%.

Bandhan Bank posted a net profit of Rs. 859 cr in the December quarter, marking 35.7% jump YoY; net Interest Income for the quarter grew by 2.6% to Rs. 2,124.7 cr.

In the news

AGS Transact IPO was subscribed 8.22x on final day of bidding. Retail portion was subscribed 3x, NII 25x and QIB 2.5x.

OPEC’s share of Indian oil imports fell in 2021 to the lowest in more than a decade despite a 4% rebound in annual crude purchases.

Around the world

Intel announced plans to invest over $20 billion in two new chip-making plants in Ohio, to boost its production capacity amid a global shortage of semiconductors.

Bank of England to raise rates again in February as inflation surges. UK’s Consumer Prices Index (CPI) in December 2021 hit its highest level since early 1992.

FancyyCosmonautt · January 21, 2022, 3:51pm

it was quite a eventful week… thought markets won’t take a downturn until budget but these have knack to surprise you… especially when you least expect it too…