Weekly Trading Diary: 18th to 22nd July 2022

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

Here’s what the markets were up to in the week gone by;

Benchmark indices snapped their three-week winning streak with Sensex dropping by around 1.3% and Nifty by around 1%.

Here’s how the major sectoral indices fared. Nifty IT was the biggest loser, sliding over 6% for the week.

On the global front, Chinese markets were the top losers, Hanf Senf index fell over 6.7% amid a sell-off in Chinese Tech stocks. While the Shanghai Composite Index was down about 3.8% amid disappointing Chinese GDP numbers.

Inflation in the US soared to 9.1% in June. US markets however recovered from weekly lows, though ended the week in the red. Here’s how the major markets around the world fared;

Things to watch out for in the coming week;


A busy week on the earnings front as quite a few big names will be releasing their Q1 earnings. Most notably, Hindustan Uniliver on 19th July, Wipro and IndusInd Bank on 20th, Reliance on 22nd, ICICI and Kotak Mahindra Bank on 23rd and Infosys on 24th July.

18th July 19th July 20th July 21st July 22nd July 23rd July 24th July
Ambuja Cements Ceat Can Fin Homes Reliance ICICI Bank Infosys
Hindustan Unilever Havells India Cyient Atul Ltd. Kotak Mahindra Bank
L&F Finance Holdings IndusInd Bank Hindustan Zinc JSW Steel
Network 18 OFSS JSW Energy Coforge Ltd.
TV18 Broadcast Tata Communications MphasiS UltraTech Cement
Au Small Finance Bank Wipro PVR Ltd. Bandhan Bank
ICICI Lombard Syngene International SRF Ltd. HDFC AMC
HDFC Life Gland Pharma RBL Bank

Key macroeconomic events to watch for

On the macroeconomic front, eyes will be on the European Central Bank as the interest rate decision is scheduled on 21st July. The Euro has been under pressure, dropping to 20-year low and reaching parity against the US Dollar. YTD the Euro is down over 11%.

18th July 19th July 20th July 21st July 22nd July
Eurozone CPI Inflation (Jun) UK CPI Inflation (JUN) Japan BoJ Interest Rate Decision Japan CPI Inflation (JUN)
US Home Sales (JUN) Eurozone ECB Interest Rate Decision Eurozone Manufacturing and Services PMI (JUL)
Crude Oil Inventories US Jobless Claims US Manufacturing and Services PMI (JUL)

So, what are you looking forward to in the coming week? Share below and join the discussion :point_down:

USA federal reserve will increase interest rates by 0.75% three times before year end.
Our RBi might do 1/2 of that amount

Wall Street controlled media painting a recession narrative to stop fed increase.

Product/ commodity inflation may stop going up. But service inflation already baked in. ( Rent/ electric/ salary increase/ retail food prices won’t come down).

At best .no more stagflation.
All non corporate employees log will cut consumption. Companies with mountains of debt have to pay more interest. Demand is weak.so prices can not be increased as much as increase in cost. So profit famine is in store.Soft landing :laughing:

Market Wrap

Nifty and Sensex surged over 1.4% today, following positive sentiment across global markets. US markets too look set for a positive opening.

:oil_drum:Brent Crude: 102.76 +1.95%

:heavy_dollar_sign:USD INR Spot: 79.97 +0.12%

:scroll:India 10Y Bond yield: 7.437 -0.01%

42 of the 50 Nifty stocks ended the day in the green.

IT and Financials were the top contributing sectors to the rally.

Check out more stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Shriram Transport Finance was the top gainer.

:chart_with_downwards_trend: Laurus Labs was the top loser.

:page_with_curl: Earnings Update:

HDFC Bank: Net Profit: Rs. 9,196 cr :arrow_up: 19% YoY; Net Interest Income (NII): Rs. 19,481 cr :arrow_up: 14.5% YoY.

BEL: Net Profit: Rs. 431.5 cr against of Rs. 11.15 cr YoY; Revenue: Rs. 3,064 cr :arrow_up: 96% QoQ.

:newspaper: News

The Indian Rupee continued to weaken further and briefly crossed levels of Rs. 80 against the US Dollar before retracing. The Rupee is down over 7.3% year-to-date against the Dollar.

HCL Technologies signed a multi-year deal with Netherland-based Royal DSM to modernize DSM’s core IT business systems.

Shares of Larsen & Toubro surged over 2.5% after the company announced that its realty arm has signed three projects worth $1 billion in the Mumbai Metropolitan Region.

China’s central bank injected additional liquidity into the financial system for the first time since June as a growing mortgage-payment boycott and a virus flare up leads to a sense of crisis.

Inflation in New Zealand surged to 7.3% in the second quarter, hitting fresh 32-year highs. Fueling bets that the central bank will need to continue raising interest rates aggressively.

Benchmark indices recovered from early lows to close up by around 0.4%, extending gains to third trading session. US futures are up too, signaling a positive opening.

:oil_drum:Brent Crude: 104.13 +1.44%
:heavy_dollar_sign:USD INR Spot: 79.94 -0.04%
:scroll:India 10Y Bond yield: 7.437 0.00%

Nifty 50 market breadth for the day.

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: RBL Bank was the top gainer.

:chart_with_downwards_trend: ONGC was the top loser.

:page_with_curl: Earnings Update:

L&T Finance: Net Profit: Rs. 214 cr :arrow_up: 114% YoY; Revenue: Rs. 2,816 cr :arrow_up: 0.2% YoY.

Ambuja Cement: Net Profit: Rs. 1,047.9 cr :arrow_up: 44.9% YoY; Revenue: Rs. 3,993.45 cr :arrow_up: 18.5% YoY.

HUL: Net Profit: Rs. 2,289 cr :arrow_up: 11% YoY; Revenue: Rs. 1,4273 cr :arrow_up: 20% YoY.

:newspaper: In the news

Board of Vedanta Ltd. approved a second interim dividend of Rs. 19.5 per share totaling Rs. 7,250 crores.

Reliance Jio gained over 31 lakh subscribers in May, consolidating its lead at the top. Airtel added around 10.27 lakh subscribers while Vodafone Idea lost 7.59 subscribers.

Investment in the Indian capital markets through participatory notes (P-notes) declined to Rs. 80,092 crore till June end, making it the lowest level in 20 months.

ONGC (-3.04%) and GAIL (-2.15%) fell sharply from days highs on reports that the Government is also planning a windfall tax on gas companies.

Expectations of global growth and corporate profits have plunged to a record low, according to a monthly Bank of America fund manager survey with cash levels rising to their highest in more than two decades as investors cut their exposure to risky assets.

Benchmark indices continued their upward momentum, rising over 1% as the government plan to reduce windfall tax on fuel exports. US stocks are set to open flat.

:oil_drum:Brent Crude: 105.59 -1.53%
:heavy_dollar_sign:USD INR Spot: 79.99 0.06%
:scroll:India 10Y Bond yield: 7.449 0.20%

A look at Nifty 50 market breadth for the day.

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: L&T Technology Services was the top gainer.

:chart_with_downwards_trend: ICICI Lombard General Insurance was the top loser.

:page_with_curl: Earnings Update:

Wipro: Net Profit: Rs. 2,563 cr :arrow_down: 21% YoY; Revenue: Rs. 21,529 cr :arrow_up: 18% YoY.

Gland Pharma: Net Profit: Rs. 229 cr :arrow_down: 18.1% YoY; Revenue: Rs. 857 cr :arrow_down: 21.7% YoY.

Tata Communications: Net Profit: Rs. 545 cr :arrow_up: 83.6% YoY; Revenue: Rs. 4,311 cr :arrow_up: 5.1% YoY.

AU Small Finance: Net Profit: Rs. 267.8 cr :arrow_up: 36% YoY; Net Interest Income: Rs. 976 cr :arrow_up: 34% YoY.

:newspaper: In the news

Global electricity demand is expected to rise by 2.4% in 2022 after a 6% increase last year, matching its average growth rate for the five years preceding the Covid-19 outbreak.: International Energy Agency

As per CRISIL report, India’s demand for gold jewelry is anticipated to decline by 5% to 550 tonnes this fiscal, mainly due to the hike in customs duty from 7.5% to 12.5%.

Inflation in the UK has accelerated to 9.4% In June, a new 40-year high, driven by rising food and fuel prices that are contributing to a cost-of-living crisis.

The EU Commission aims to reduce gas usage by 15% in order to avoid a shortage of gas during the winter amid fears of Russia cutting off deliveries.

Last 3 days, FIIs have been net buyers. Worst of the selling seems to be done so far.

Benchmark indices surged in the second half of the day to settle higher. Futures on Dow and Nasdaq are flat, indicating a mixed start for US markets.

:oil_drum:Brent Crude: 102.59 -3.66%
:heavy_dollar_sign:USD INR Spot: 79.945 -0.06%
:scroll:India 10Y Bond yield: 7.446 -0.04%

A look at Nifty 50 market breadth for the day.

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Tata Communications was the top gainer.

:chart_with_downwards_trend: Crompton Greaves Consumer was the top loser.

:page_with_curl: Earnings Update:

IndiaMart: Net Profit: Rs. 46.7 cr :arrow_down: 46.8% YoY; Revenue: Rs. 224.6 cr :arrow_up: 23.7% YoY.

SRF: Net Profit: Rs. 609 cr :arrow_up: 54.1% YoY; Revenue: Rs. 3,894.7 cr :arrow_up: 44.3% YoY.

RBL Bank: Net Profit: Rs. 201.2 cr against loss of Rs. 459 cr YoY; Net Interest Income: Rs. 1,027.7 cr :arrow_up: 6% YoY.

Hind Zinc: Net Profit: Rs. 3,092 cr :arrow_up: 55.9% YoY; Revenue: Rs. 9,387 cr :arrow_up: 43.7% YoY.

:newspaper: In the news

The Asian Development Bank reduced its FY23 growth forecast for India to 7.2% from 7.5% in April this year, attributing the revised forecast to surging food and fuel prices in India.

At 0.7% of the GDP, India’s R&D spending is lowest in the world, and also lower than other BRICS nations. Spending levels for Brazil, Russia, China, and South Africa are 1.2%, 1.1%, over 2%, and 0.8%. While world average stands at 1.8%: Niti Aayog

India received $87 billion in remittances in 2021, placing it well ahead of countries like China and Mexico, according to a WHO report.

Annual revenue of around 49 auto ancillaries is expected to grow 8-10% in current fiscal year from ₹3 lakh crore, as per ICRA.

Ukraine devalued its hryvnia currency by 25% against the US Dollar to protect its foreign-currency reserves as its economy continues to get affected due to the ongoing war.

Good morning all,

Today seems like a good day to take off your profits in longs and let mrkt give an indication for the next big move.

With 31% of nifty (Reliance, Infy, kotak etc) coming up with results during the weekend, monday is expected to be news specific and choppy.

Nifty and Sensex rounded off a solid week on a positive note, rising 0.7% on the final trading session and ending the week with over 4% gains. US markets look set for a mixed opening.

:oil_drum:Brent Crude: 102.61 -1.19%
:heavy_dollar_sign:USD INR Spot: 79.855 -0.11%
:scroll:India 10Y Bond yield: 7.416 -0.32%

A look at Nifty 50 market breadth for the day.

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Atul was the top gainer.

:chart_with_downwards_trend: Syngene International was the top loser.

:page_with_curl: Earnings Update:

Ultratech Cement: Net Profit: Rs. 1,582 cr :arrow_down:7.45% YoY; Revenue: Rs. 15,164 cr :arrow_up: 22% YoY.

JSW Steel: Net Profit: Rs. 838 cr :arrow_down: 86% YoY; Revenue : Rs. 38,086 cr :arrow_up: 32% YoY.

Bandhan Bank: Net Profit: Rs. 886.5 cr against profit of 373.1 cr YoY; Net Interest Income: Rs. 2,514.4 cr :arrow_up: 18.9% YoY.

HDFC AMC: Net Profit: Rs. 314.5 cr :arrow_down: 9% YoY; Revenue: Rs. 521.6 cr :arrow_up: 2.9% YoY.

:newspaper: In the news

India’s sugar production may fall slightly to 355 lakh tonnes against 360 lakh tonnes in the 2022-23 marketing year starting October, due to the diversion of sugarcane towards ethanol manufacturing, according to Indian Sugar Mills Association.

Companies setting up new factories in proposed development hubs may be allowed to pay a concessional corporation tax rate of 15% for 10 years. The proposal is scheduled to be tabled in the upcoming session of the parliament.

The European Central Bank hiked its interest rate by 50 basis points to zero percent and plans further hikes this year as it strives to control the surging inflation in the eurozone. This was the first rate hike in more than 11 years.

Eurozone business activity slumped into contraction territory in July for the first time in 17 months, dragged lower by a quickening slowdown in manufacturing and near-stagnant growth in services.

Russia’s central bank brought interest rates below their level before the invasion of Ukraine, as it navigates risks to inflation and the economy from sanctions. Policymakers lowered their benchmark to 8% from 9.5%.