Weekly Trading Diary: 1st to 5th August 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;

Markets made a spectacular recovery, gaining as much as four and a half percent from the early week lows, carrying over positive momentum for the second week running. Both Nifty and Sensex gained over 2.6% for the week, with Nifty closing above the 17k mark while Sensex at around 57.5k.

On the sectoral front, Auto, PSU Bank and FMCG indices posted minor losses. Metals shined, gaining over 7.7% for the week.



On the global front, US markets shrugged off negative GDP growth figures and posted another week of solid gains. European markets too look unfazed by the latest inflation print. Asian markets, however, ended the week in losses. Here’s how the major global markets fared;


The US economy contracted for the second straight quarter with the latest GDP growth coming in at -0.9%. Igniting fears of recession. The GDP shrank -1.6% YOY in the first quarter.

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The annual inflation rate in the Eurozone accelerated to 8.9% in July from 8.6% a month earlier.

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Things to watch out for in the coming week;

Earnings

1st August 2nd August 3rd August 4th August 5th August 6th August
Castrol India Adani Green Energy Adani Transmission Adani enterprises Alkem Labratories SBI
Escorts Kubota Ltd. Bank of India Aditya Birla Capital Alembic Pharma CAMS Ltd. Marico Ltd.
ITC Ltd. Bosch Ltd. Birlasoft Balrampur Chini Mills Fortis Healthcare Amara Raja Battries
Kansai Nerolac Paints Deepak Nitrite Chambal Fertilisers Bankrishna Industries Mahindra & Mahindra Ltd. Affle India Ltd.
Max Financial Services Godrej Properties Godrej Consumer Products Bayer Corpscience NMDC Ltd.
Thyrocare Technologies Indus Towers Inox Leisure Berger Paints Nykaa Ltd.
UPL Ltd. Siemens Ltd. InterGlove Aviation BHEL Ltd. Paytm
Varun Beverages Voltas Ltd. KEC International Britannia Industries Petronet LNG Ltd.
Zomato Ltd. Lupin Ltd. Container Corp. of India Pfizer Ltd.
PI Industries Dabur India Titan
Prism Johnson Dalmia Bharat
Tata Coffee GAIL Ltd.
Vodafone Idea HPCL Ltd.
LIC housing Finance
Manappuram Finance
REC Ltd.

The key event to watch out for this week will be RBI’s monetary policy committee meeting scheduled from 3rd to 5th August, with the outcome expected on 5th August. Along with this, the Bank of England’s interest rate decision is scheduled on 4th August.

Fed hiked interest rates by 0.75% in the week gone by. Here’s how the latest interest rates look like across economies:

Key macroeconomic events to watch for

1st August 2nd August 3rd August 4th August 5th August
India S&P Global Manufacturing PMI (JUL) China Caixin Services PMI (JUL) UK BoE Interest Rate Decision India RBI Interest Rate Decision
S&P Global Services PMI (JUL) Eurozone Services PMI (JUL) US Jobless Claims US Non-farm Payrolls
China Caixin Manufacturing PMI (JUL) Markit Composite PMI (JUL) Unemployment Rate
Eurozone Manufacturing PMI (JUL) US ISM Non-Manufacturing PMI (JUL)
Unemployment Rate Services PMI (JUL)
US ISM Manufacturing PMI (JUL) Crude Oil Inventories

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

Good morning folks

Great morning to be a bull in the first hour. I’m sitting on the sidelines n watching the show as it makes little sense to go long here and price action is against taking shorts. Ideally I expect mrkt to retest 17000-16800 zones for cooling off

Expecting some cool down in the mrkt before the event. Else it will be crazy :grin:

Benchmark indexes continued their positive momentum for the fourth trading day, rising over 1% following positive global cues. Dow and Nasdaq futures are flat.

:oil_drum:Brent Crude: 102.48 -1.11%
:heavy_dollar_sign:USD INR Spot: 79.02 -0.29%
:scroll:India 10Y Bond yield: 7.24 -1.09%

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: IDFC First Bank was the top gainer.

:chart_with_downwards_trend: Multi Commodity Exchange was the top loser.

:page_with_curl: Earnings Update:

UPL : Net Profit: Rs.877 cr :arrow_up:30% YoY; Revenue : Rs 10821 cr :arrow_up:27% YoY.

Escorts Kubota: : Net Profit: Rs. 147.5 cr :arrow_down:20.4% YoY; Revenue : Rs. 2014.9 cr :arrow_up: 20.1% YoY.

:newspaper: In the news

The GST revenue collected in the month of July stood at Rs 1,48,995 crore, which is the second highest ever since the introduction of GST and up 28% year-on-year.

The government has netted Rs. 150,173 crore in revenue in the 5G spectrum auction ended today. The spectrum range on sale was also a record high, with the government seeking to sell 72 GHz at a base price of Rs. 4.3 trillion.

Indian manufacturing PMI rose from 53.9 to 56.4 in July—the strongest growth in 8 months.

UPI clocked over 6 billion transactions in July, the highest ever since its inception in 2016.

Volumes of transactions are up 7.16% and value increased 4.76% MoM. On a YoY basis, the volume of transactions nearly doubled while value of transactions was up 75%

India’s power consumption grew marginally by 3.8 % YoY to 128.38 billion units (BU) in July amid widespread rains in the country, according to power ministry data.

German retail sales plummeted the most since 1980 in June as consumers cut spending on non-essential goods to cope with record inflation. The Sales were down 9.8% from the previous year.

The Taiwan dollar breached past the key level of 30 per US dollar for the first time in 2 years as a double whammy of heightened geopolitical risks and weaker economic growth weighed on the currency.

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Nifty and Sensex ended the choppy session flat, as geopolitical tensions between US-China appear to have dampened sentiment across the markets. US futures too are trading lower.

:oil_drum:Brent Crude: 100.63 0.83%
:heavy_dollar_sign:USD INR Spot: 78.7125 -0.39%
:scroll:India 10Y Bond yield: 7.196 -0.61%

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: Bank of Baroda was the top gainer.

:chart_with_downwards_trend: Escorts Exchange was the top loser.

:page_with_curl: Earnings Update:

Thermax: Net Profit: Rs.59 cr :arrow_up:40.5% YoY; Revenue : Rs 1654.5 cr :arrow_up:57.3% YoY.

Godrej Properties: Net Profit: Rs.45.5cr :arrow_up:167% YoY; Revenue : Rs. 245 cr :arrow_up:184% YoY.

Bank of India: Net Profit: Rs. 561.5 cr :arrow_down:22% YoY; Net Interest Income: Rs. 4072 cr :arrow_up:29.5% YoY.

:newspaper: In the news

Foreign banks made their biggest monthly purchase of Indian government bonds in two and a half years in July, as they bet on aggressive rate hikes from the United States.

The yen is on track for its longest win streak in more than two years, as rising US-China tensions over Taiwan and deep worries about a global economic slowdown have boosted the appeal of safe-haven assets. The Japanese yen has gained nearly 4.5% in just five trading days.

FMCG consumption saw diverging trends in the April-June quarter, with urban markets growing and rural markets declining as people opted for smaller packs. : NielsenIQ Report

YES Bank hit its highest level since January 2021, rising 20% in 3 days as the company announced to raise equity capital of around Rs 8,900 crore from funds affiliated with two global private equity investors - Carlyle and Advent International.

ITC announced the exit in the lifestyle retailing business following ‘strategic review’ of the business portfolio.

BP’s second quarter profit soared to $8.45 billion, its highest in 14 years, as strong refining margins and trading prompted it to boost its dividend and spending on new oil and gas production.

The power ministry is seeking to remove a cap on the high-price market segment of power exchange allowing power generators whose variable costs exceed 12 rs. a unit to participate in the power exchanges.

Benchmark indices managed to close positive for the sixth trading day, continuing their winning streak amid mixed global cues and rising geopolitical tensions between the US and China. US stocks are set for a good start.

:oil_drum:Brent Crude: 100.16 0.29%
:heavy_dollar_sign:USD INR Spot: 79.16 0.57%
:scroll:India 10Y Bond yield: 7.241 0.63%

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: Nippon Life India Asset Management was the top gainer.

:chart_with_downwards_trend: Indus Towers was the top loser.

:page_with_curl: Earnings Update:

IndiGo: Net Loss: Rs 1064.3 cr :arrow_up: Loss of 1681 cr YoY; Revenue: Rs. 12855.3 Cr :arrow_up:327.5% YoY.

Adani Wilmar: Net Profit: Rs.193.6 cr :arrow_up:10.19% YoY; Revenue : Rs 14731.6 cr :arrow_up:30.2% YoY.

Adani Power: Net Profit: Rs.4780 cr :arrow_up: Profit of 278 cr YoY; Revenue: Rs. 13723 cr :arrow_up:109% YoY.

BSE: Net Profit: Rs. 40 cr :arrow_down:22.8% YoY; Net Interest Income: Rs. 186.8 cr :arrow_up:19.1% YoY.

AB Capital : Net Profit: Rs 429.5 cr :arrow_up:42.2% YoY; Revenue : Rs.5590.3 Cr :arrow_up:30% YoY.

:newspaper: In the news

As a first retaliation against US House Speaker Nancy Pelosi’s visit to Taiwan, China announced to halt the exports of Natural sand to Taiwan as per the reports of CGTN News

The S&P Global India Services PMI decreased to 55.5 in July 2022 from 59.2 in June, and below market consensus of 58.5, pointing to the weakest expansion in the sector since March, as weaker sales growth and inflationary pressures restricted the latest upturn in business activity.

India’s merchandise trade deficit jumped to a new record high of $31.02 billion in July, The previous record high was set in June, when the trade deficit was $26.18 billion.

The government has revised the windfall tax on oil companies for the second time since its implementation a month ago, raising the tax rate on domestic crude production to Rs 17,750 a tonne effective today.

Turkey’s inflation accelerates to a 24-year high of 79.6% driven by transportation and food costs.

Good morning folks

There’s reports of Targeted striking by china in taiwan which caused the sudden fall in market, whats interesting to note though is there’s no reaction of this in US market futures.

Benchmark indices snapped their 6-day winning streak, ending marginally lower on what was highly volatile day that saw markets fall and recover by over 1% from highs and lows.

:oil_drum:Brent Crude: 100.16 0.29%
:heavy_dollar_sign:USD INR Spot: 79.16 0.57%
:scroll:India 10Y Bond yield: 7.241 0.63%

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: Zydus Lifesciences was the top gainer.

:chart_with_downwards_trend: Balrampur Chini Mills was the top loser.

:page_with_curl: Earnings Update:

Berger Paints: Net Profit: Rs. 253.43 cr :arrow_up: 80.3% YoY; Revenue: Rs. 2,759.7 cr :arrow_up: 53.4% YoY.

LIC Housing: Net Profit: Rs. 925.5 cr against profit of Rs, 153.4 cr YoY; NII: Rs. 1,645.5 cr :arrow_up: 25.9% YoY.

Manappuram: Net Profit: Rs. 282 cr :arrow_down: 35% YoY; Net Interest Income: Rs. 957 cr :arrow_up: 7% YoY.

Britannia: Net Profit: Rs. 336 cr :arrow_down: 13.2% YoY; Revenue: Rs. 3,701 cr :arrow_up: 8.7% YoY.

GAIL: Net Profit: Rs. 2,915 cr :arrow_up: 90.5% YoY; Revenue: Rs. 37,572 cr :arrow_up: 116% YoY.

:newspaper: In the news

India’s coal imports from Russia rose over a fifth in July to a record of 2.06 million tonnes, making it India’s third largest coal supplier.

Bank of England hikes interest rates by 50 basis points to 1.75%, the biggest increase in 27 years.

German factory orders sank for a fifth month in June as the orders were down 0.4% MoM as rampant inflation and global supply disruptions continued to weigh on the outlook in Europe’s largest economy.

Australia’s trade surplus hit a fresh record high to $ 12.3 billion, driven by strong prices of key exports from grains to metals and gold, in a result that’s likely to boost second-quarter GDP.

Benchmark indices managed to finish positive despite falling from the day’s highs after the RBI announced a hike in the repo rate. US markets look set for a mixed start.

:oil_drum:Brent Crude: 93.99 0.46%
:heavy_dollar_sign:USD INR Spot: 79.23 -0.30%
:scroll:India 10Y Bond yield: 7.302 2.03%

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: Manappuram Finance was the top gainer.

:chart_with_downwards_trend: Balkrishna Industries was the top loser.

:page_with_curl: Earnings Update:

M&M: Net Profit: Rs 1,430 cr :arrow_up: 66.9% YoY; Revenue : Rs. 19,613 Cr :arrow_up: 66.7% YoY.

REC: Net Profit: Rs. 2454 cr :arrow_up: 8% YoY; Revenue: Rs. 9506 cr :arrow_down:0.7% YoY.

Petronet LNG : Net Profit: Rs. 700.9 cr :arrow_down:6.5% YoY; Revenue: Rs.14263.8 cr :arrow_up:27.8% YoY.

NMDC: Net Profit: Rs.1469.4 cr :arrow_down:54% YoY; Revenue: Rs.4767.1cr :arrow_down:27% YoY.

:newspaper: In the news

RBI’s Monetary Policy Committee hiked repo rate by 50 bps to pre-pandemic levels of 5.40% last seen in August 2019, retaining the policy stance of Withdrawal of Accommodation.

The country’s foreign exchange reserves rose $2.4 billion to $ 573.9 billion as on July 29, 2022” after declining for four consecutive weeks as FPIs returned back to the Indian markets as net investors.

India will allow 1.2 million tonnes of additional sugar export in this marketing year ending Sep. 30 over the 10 million cap, following high production and to avert any sharp price fall amid the supply glut.

Inflation in the Netherlands rose to 10.3% in July, exceeding the double digit mark for the first time since September 1975, the Central Bureau of Statistics (CBS) announced. The increase in inflation was mainly due to price developments for energy, such as electricity, gas, and district heating.

China has announced unspecified sanctions on U.S. House Speaker Nancy Pelosi for her visit earlier this week to Taiwan.