Weekly Trading Diary: 21st to 25th March 2022

Tradingqna · March 20, 2022, 12:21pm

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

A quick look at what the markets were up to in the week gone by;

Benchmark indices reacted positively to the news of Fed interest rate hike on Thursday and continued positive momentum for second week running. Nifty surged 4.2% to close well above 17,000 mark while Sensex, up 4.3% closed just shy of 58k.

All the sectoral indices finished the week in green with Nifty Bank, Auto and Realty leading the gains, up over 5% for the week.

Here’s how the major markets around the world fared;

Things to watch out for in the week;

Primary market will be back in action after a brief pause as Ruchi Soya’s Rs. 4,300 crore follow-on public offering (FPO) will be opening for subscription on 24th March and will close on 28th March. The company has set price band of Rs. 615 - 650 for the issue. You can check out more details here: Everything You Need to Know About Ruchi Soya FPO

Key economic events for the week;

	21 Mar		23 Mar		24 Mar		25 Mar
China	PBoC Loan Prime Rate Decision	Britain	CPI Inflation (FEB)	Japan	Services PMI	Britain	Retail Sales (MAR)
			Annual Budget Release	Eurozone	Services PMI (MAR)	US	Pending Home Sales (FEB)
		US	Fed Chairman Powell Speech		Manufacturing PMI (MAR)
			New Home Sales (FEB)		Markit Composite PMI (MAR)
				US	Durable Goods Orders (FEB)
					Services PMI (MAR)
					Manufacturing PMI (MAR)
					Markit Composite PMI (MAR)

What are you looking forward to in the coming week? Share below

pranab_debnath · March 20, 2022, 5:28pm

For Monday I’m putting bnf 37000 ce 24 mar and Nifty 17300 ce 24 mar for short. Also cipla may take a pause to negative. ITC looks like to be on long side.

Prakashsingh · March 21, 2022, 3:27am

Good Morning folks

With crude prices surging again (back above 110$), expecting financials to take a breather and mrkt to be range bound and expecting selling from higher levels (btwn 17400-500 zones)

I will be positionally long in energy , agri n fertilizer based stocks and will look to buy puts in financials for couple of days.

I expect nifty to trade in the range of 17000-17500 in the coming week.

Prakashsingh · March 21, 2022, 11:27am

Fertilizer stocks were up today. Financials were down.

Nifty reversed from 17350 zones and came near 17100 zones.

jashjacob · March 22, 2022, 8:41am

Good short covering seen in NIFTY.

Vix got crushed hard.

I was sitting in a short straddle @ 17100 from the market open. When I noticed the market covering back up above 17080 after a nice volatility contraction and jumped out with more than decent profit for the day.

Prakashsingh · March 22, 2022, 11:25am

Today’s low was 17006. This range is working so far

Nifty’s fut high from last 3 days

17386
17392
17384

This zone of 17380-420 becomes key now till the monthly expiry.

Tradingqna · March 22, 2022, 1:19pm

Benchmark indexes recovered from yesterday’s loss and gained more than 1%, following global cues. US markets too, look set for a positive start.

Brent Crude: 115.98 -0.30%
USD INR Spot: 76.17 +0.08%
India 10Y Bond yield: 6.831 +0.74%

Nifty IT topped the sector indices with a 2% rise, while Nifty FMCG and Realty were the worst performers, falling nearly 1%.

Amongst the F&O stocks

Rain Industries was the top gainer.
ZEEL was the top loser.

In the news

Tata Motors announced on Tuesday that it will hike its commercial vehicles’ prices by 2-2.5 % from April 1, 2022. The price rise though will depend on individual model and variant, the company said.

Infosys to acquire Germany-based digital experience, marketing agency, Oddity for upto €50m. The acquisition of Oddity is expected to close during the first quarter of fiscal 2023.

Petrol and diesel prices were raised by over 80 paise a litre on March 22 after a status quo on rates for 137 days. Cooking gas prices too were raised the same day. Domestic LPG cylinder prices have been hiked by over Rs 50 in Delhi, Mumbai, and other cities with effect from March 22.

Rating agency Fitch on Tuesday slashed India’s growth forecast for the next fiscal to 8.5% from 10.3%, citing sharply high energy prices on account of the Russia-Ukraine war.

Zee Entertainment Enterprises slumped more than 3% after a division bench of the Bombay High Court vacated its earlier order restraining the NCLT from hearing an appeal by Invesco.

Around the World

The 10-year U.S. Treasury yield topped 2.34% as Powell said on Monday that the Fed would continue to raise interest rates until inflation is under control and that hikes could get even more aggressive than last week’s 25 basis point increase.

Chinese smartphone maker Xiaomi Corp reported a bigger-than-expected 21.4% rise in fourth-quarter revenue, as industry shipments of handsets slowly tick up following a global chip shortage and the peak of the pandemic.

Tradingqna · March 23, 2022, 12:53pm

Nifty and Sensex tumbled from their day’s highs in a volatile session, down by around 0.5% for the day. Dow and Nasdaq futures indicate a weak start for US markets.

Brent Crude: 118.09 +3.15%
USD INR Spot: 76.30 +0.16%
India 10Y Bond yield: 6.832 +0.01%

On the sectoral front, Nifty Metal index was the top performer, up by 1.2%. Nifty Auto was the top loser, down by 1%.

Amongst the F&O stocks

L&T Finance Holdings was the top gainer.
Chambal Fertilisers was the top loser.

In the news

Indian Hotels gains 3% as board approves Rs 2,000-crore QIP; A board meeting is scheduled to be held on March 25, 2022, to consider and approve the issue price, including a discount, for the equity shares to be allotted to QIB

CREDAI says developers have decided to halt the purchase of materials as they believe elevated costs will ultimately result in projects getting stalled.

Kotak and Axis Bank acquired 7.84% stake each in the open public digital infrastructure framework entity ONDC which was incorporated on December 30, 2021, creating an open public digital infrastructure to develop the Indian digital commerce ecosystem for both goods & services.

Hero MotoCorp fell more than 1% after the IT department began searches at the company’s premises. The tax department also raided Hero MotoCorp Chairman Pawan Munjal and other senior executives of the company for suspected tax evasion.

India has achieved the ambitious goods export target of $400 billion for the first time ever ahead of schedule for the financial year 2021-22 (till March 22, 2022). Prime Minister Modi on Wednesday congratulated farmers, weavers, MSMEs, manufacturers, and exporters for success.

Around the World

The world’s second largest steel producer, ArcelorMittal, has entered into a strategic partnership with one of India’s leading renewable energy companies, the Greenko Group, for a project that will power the decarbonization journey of ArcelorMittal Nippon Steel India.

Denmark’s consumer confidence index drops to the lowest level since the financial crisis of 2008 as sentiment is hit by the war in Ukraine

British inflation shot up faster than expected last month to hit a new 30-year high, worsening a historic squeeze on household finances; The Office for National Statistics said consumer prices rose by 6.2% in February after a 5.5% rise in January, its highest rate since March 1992.

KALYANN · March 23, 2022, 1:49pm

Today Crude is killing the futures market.

Prakashsingh · March 24, 2022, 8:49am

Great resilience shown by bulls btwn 17100-100 zones. Ignoring all the bad news…hmmmmmm…kuch toh gadbud hai daya

Tradingqna · March 24, 2022, 12:53pm

Nifty and Sensex recovered from day’s lows to close the volatile session flat. Dow and Nasdaq futures indicate a good start for US markets.

Brent Crude: 121.56% +0.13%
USD INR Spot: 76.36 +0.09%
India 10Y Bond yield: 6.835 +0.06%

Nifty Media index was the top gainer for the day, surging 5.9%. Nifty Bank, Auto and PSU Bank were the only sectors in red with Nifty Bank declining the most, down 1.7%.

Amongst the F&O stocks

Zee Entertainment was the top gainer, surging around 17% after Invesco withdrew its demand for a board overhaul.

L&T Finance Limited was the top loser.

In the news

Kotak Mahindra Bank was among the Top losers in Nifty as Canada Pension Fund, a stakeholder in the private lender offloaded 1.41 to 2.02 percent stake at Rs 1,681.26-1,769.75 per share.

ZEEL share price surged around 17% after Invesco withdrew its demand for a board overhaul. Invesco stated that it’ll not hold an extraordinary general meeting to add six independent directors since Zee’s merger with Sony would achieve its goal of strengthening board oversight.

Motherson Sumi wins an order to manufacture, supply aftermarket molded polymer parts for commercial plane interiors from Boeing. Company says the beginning of a new journey in Motherson’s growth in aerospace.

India’s top fuel retailers IOC, BPCL, and HPCL have together lost around $2.25bn (Rs. 19,000 crore) in revenue between November and March by keeping petrol and diesel prices unchanged despite a sharp rise in crude oil prices, Moody’s Investors Service said on Thursday.

Consumer sentiments in India have witnessed a sharp recovery since June 2021 and continue to rise week after week on the back of significant surge in income of middle-income households, the Centre for Monitoring Indian Economy said.

Around the World

Russian rouble briefly leaped to a three-week high past 95 against the dollar on Wednesday in Moscow, before settling close to 100, after President Vladimir Putin said Russia would start selling its gas to “unfriendly countries” in roubles.

Norway’s central bank hikes interest rates for the third time. The monetary policy committee of Norges Bank raised the sight deposit rate from 0.50% to 0.75. While the war in Ukraine has increased concern about the economic future.

French business and manufacturing confidence slumped in March to the lowest levels in almost a year as optimism on the production outlook declined sharply.

Hungary resumed raising the effective interest rate after the central bank said that the war in neighboring Ukraine will lead to a sharply deteriorating inflation outlook.

Prakashsingh · March 25, 2022, 5:06am

Good Morning folks

What we are witnessing is narrow range consolidation in the index. Monthly expiry premiums on both call and put side are being eaten up currently as breakfast

I dont want to be trapped on the wrong side in index as move can come on any side.

But, one thing to notice though is as we are approaching the quarter and financial year ending, we may see NAV adjustment trades.

Tradingqna · March 25, 2022, 12:45pm

Benchmark indices failed to hold their gains, closing lower following a mixed trend in global markets. US futures are slightly higher, indicating a positive start to the US market.

Brent Crude: 116.31 -1.62%
USD INR Spot: 76.19 -0.22%
India 10Y Bond yield: 6.814 -0.29%

Among the sectoral indices, Nifty Realty index was the top gainer for the day, gaining 1.2%. The top losers were Nifty Pharma and IT, both of which fell by nearly 1%.

Amongst the F&O stocks

Container Corporation of India was the top gainer.
Indus Towers was the top loser.

In the news

Airtel pre-paid Rs. 8,815 cr of spectrum dues to reduce interest expenses; This is the second such prepayment by Airtel in the last three months and comes on the back of strong cash flow generation, equity infusion, and borrowing at significantly lower interest rates

Ola has signed an agreement to acquire neo bank Avail Finance. The acquisition is a key step in Ola’s broader push into the fintech space as it looks to build a mobility-focused financial services business under Ola Financial.

Cement prices rose in March over the previous month. After being flat for a quarter until February, prices spiked past the November peak. By several reports, the monthly average cement price in India grew by more than 10% to Rs 395 per 50 kg bag in March 2022.

State-run power company NTPC commercially launched an additional 42.5 MW of power generation capacity at Ramagundam floating solar in Telangana. Earlier, the company had commissioned 17.5 MW (Part-I) and 20 MW (Part-II) of the Ramagundam floating solar project.

Banks had a 37.9% share of the microfinance industry in the quarter ended December 2021, according to a report by CRIF High Mark Credit Information Services. The study also finds that NBFCs constitute the second largest segment with a share of more than 33% of the market.

Around the World

New Zealand mortgage rates are set to rise above 5% for the first time in seven years, damping economic growth and exerting further downward pressure on a cooling housing market.

World stocks are headed for a second consecutive week of gains for the first time in 2022 though sentiment was broadly cautious as markets evaluated the economic risks from the Federal Reserve’s policy tightening and Russia’s war in Ukraine.

Canada will increase oil and gas exports by the equivalent of 300,000 barrels a day to help nations that are trying to shift away from Russian supplies.

The commitment by the United States to deliver additional liquefied natural gas (LNG) to the EU is a big step towards making Europe less dependent on Russian gas, EU Commission head Ursula von der Leyen said on Friday.