Weekly Trading Diary: 19th to 23rd September 2022

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

Here’s how the markets fared in the week gone by:

Indian benchmark indices started off the week strongly but erased all the gains made early in the week and some more in the last three trading sessions of the week as markets around the world saw a strong sell-off.

Sensex ended the week down by around 1.6%, while Nifty was down by 1.7% for the week, snapping a two-week winning streak.

Here’s how the major sectors fared in the week ended 16th September:

Coming to global markets, things look much bearish, especially in the US, the benchmark US indices dropped between 4.1% to 5.5%. A look at how the major global indices fared in the week gone by;

Things to watch out for in the coming week;

Key macroeconomic events to watch for;

In the coming week, all eyes will be on the outcome of the US Fed’s monetary policy meeting. Along with this, the Bank of Japan and Bank of England too are set to announce their interest rate decision, on Thursday.

Here are some of the major macroeconomic events for the week.

19th September 20th September 21st September 22nd September 23rd September
Japan CPI Inflation (AUG) US Fed Interest Rate Decision Japan BOJ Interest Rate Decision Eurozone Services PMI (SEP)
Home Sales UK BOE Interest Rate Decision Manufacturing PMI (SEP)
Crude Oil Inventories US Jobless Claims Markit Composite PMI (SEP)
UK Services PMI (SEP)
Manufacturing PMI (SEP)
Composite PMI (SEP)
US Services PMI (SEP)
Manufacturing PMI (SEP)
Markit Composite PMI (SEP)

What are you looking forward to in the week? Share below and join the discussion :point_down:

1 Like

Good morning folks,

seems like a data heavy week this time around. I’m assuming most of the news related to quantum of rate hike is already factored in what needs to be seen is the policy direction. Last week’s nifty close , although seems not so good but relatively speaking we are doing much better than the global peers. 17400-350 is a good support zone and I guess till 22nd, we will be on a wait n watch mode.

Benchmark indices recovered from the day’s lows and gained over 0.5% to settle higher ahead of the Federal Open Market Committee meeting this week. US futures are trading lower.

:oil_drum:Brent Crude: 88.93 -2.84%
:heavy_dollar_sign:USD INR Spot: 79.77 0.04%
:scroll:India 10Y Bond yield: 7.279 0.18%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: India Cements was the top gainer.

:chart_with_downwards_trend: Can Fin Homes was the top loser.

:newspaper: In the news

India’s natural gas consumption fell by 10% in August 2022, compared to August 2021, driven by lower production at home and a sharp drop in imports. Import of LNG fell 19% in August on high prices and limited availability in the spot market.

The central government decreased windfall profit tax on locally-produced crude oil in line with a fall in international rates and reduced the levy on export of diesel and jet fuel (ATF). Tax on domestically-produced crude oil was reduced to Rs. 10,500 per tonne from Rs 13,300 per tonne.

Billionaire Gautam Adani-led Adani group on September 16 surpassed the market capitalization of Tata group to become the most valuable in the country and Gautam Adani surpassed Jeff Bezos to become the second richest person in the World.

National Asset Reconstruction Company of India Ltd, is preparing to buy 18 distressed accounts totaling Rs 39,921 crore by October 31. Phase 1 consists of 8 accounts with a debt of Rs 16,744 crore, while Phase 2 consists of 10 accounts with a debt of Rs 18,177 crore.

National Highways Authority of India intends to raise Rs 10,000 crore from the capital market via infrastructure investment trusts. The first of the InvITs is expected to open around Diwali to raise Rs 3,000-4,000 crore, with the second raising Rs 5,000-6,000 crore by December.

Advance tax collection rose 10.1% YOY to Rs 1.92 lakh crore in the 2nd quarter of 2022-23. According to CBDT, the total advance tax collection between April 1 and September 17, including first and second installments, surged 17% to exceed Rs 2.95 lakh crore.

1 Like

:innocent: :innocent:

Benchmark indices closed higher for the second trading day, up nearly 1%, following positive global signals. Dow and Nasdaq futures point to a negative opening for US markets.

:oil_drum:Brent Crude: 92.64 0.70%
:heavy_dollar_sign:USD INR Spot: 79.754 0.07%
:scroll:India 10Y Bond yield: 7.296 0.26%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Apollo Hospitals was the top gainer.

:chart_with_downwards_trend: Can Fin Homes was the top loser.

:newspaper: In the news

Corporate India’s investment in assets like buildings, machines, and acquisitions grew by 9.1% on an annualized basis in 2021- 22, outpacing CAPEX growth by 7.4%. The total cumulative investment in fixed assets, or gross block, reached Rs 72.5 lakh crore by the end of 2021-2022.

The NPCI, which runs the UPI digital ecosystem, is in discussions with the government and industry stakeholders on the implications of delaying its deployment timeline in order to limit participants’ market share.

Hero Future Energies will get a USD 450 million investment from Hero Group and investment firm KKR. The investment will put HFE in a position for long-term growth and support its initiatives to gradually increase its capacity and capabilities for renewable energy across technologies.

Nifty and Sensex declined by around half a per cent. The US futures indicate a positive opening for US markets.

:oil_drum:Brent Crude: 92.25 +1.56%

:heavy_dollar_sign:USD INR Spot: 79.975 +0.28%

:scroll:India 10Y Bond yield: 7.26 -0.47%

A look at Nifty 50 market breadth today

Sectoral performance

Amongst the F&O stocks

:chart_with_upwards_trend: Britannia Industries was the top gainer.

:chart_with_downwards_trend: ACC was the top loser.

:newspaper: News

India’s banking system liquidity has slipped into deficit for the first time in nearly 40 months, according to the RBI. The RBI infused Rs. 218 billion ($2.73 billion) into the banking system on Tuesday, the biggest since May 2019.

Indian exports to the six Gulf Cooperation Council countries grew by 44% to $43.9 billion in FY 2021-22, compared to the previous fiscal’s $27.8 billion.

The Indian rupee closed at its lowest level ever against the U.S. Dollar, tracking the dollar index’s strength as the market awaits the Federal Reserve’s decision on a hefty rate hike to tame inflation pressures.

Gross non-performing assets (GNPAs) of banks are likely to touch the lowest level in a decade to around 5% by next fiscal year and another 100 bps to a decadal low of four percent by 31 March 2024: CRISIL.

Indian benchmark indices fell by another half a per cent amid weak global sentiment following Fed’s 75 bps rate hike. US markets too are staring at a negative opening.

:oil_drum:Brent Crude: 90.45 +0.56%
:heavy_dollar_sign:USD INR Spot: 80.86 +1.11%
:scroll:India 10Y Bond yield: 7.233 0.00%

A look at the Nifty 50 market breadth for the day.

Sectoral performance.

More stats at stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Metropolis Lab was the top gainer.

:chart_with_downwards_trend: India Cements was the top loser.

:newspaper: News

Cabinet approved Rs. 19,500 crore PLI scheme on the national programme on high-efficiency solar PV modules with an aim to attract Rs. 94,000 crore investment in the sector which is expected to bring in 65,000 MW per annum manufacturing capacity.

As per the FICCIs report, the exchequer is estimated to have lost Rs. 58,521 crore in taxes in 2019-20 due to illicit trade in goods in five key industries such as FMCG, mobile phones, tobacco products and alcohol.

The Bank of England’s Monetary Policy Committee (MPC) voted to increase the Bank Rate by 50 basis points to 2.25% on expected lines to combat growing inflation.

The Swiss National Bank raised interest rates by 75 basis points to 0.5% to bring borrowing costs above zero for the first time in almost eight years making it their most aggressive tightening action in two decades.

The Bank of Japan intervened in the foreign exchange market for the first time since 1998 by buying Yen in an attempt to shore up the battered currency after the central bank announced that it plans to keep ultra-low interest rates going forward.

Illicit traders, abnormal profits :money_mouth_face: :man_facepalming: