Weekly Trading Diary: 23rd to 27th May 2022

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

A look at market performance in the week gone by;

Markets continued to remain volatile but managed to snap five week losing streak and end the week on positive note. On the sectoral front, except Nifty IT index, all other sectoral indices were in green for the week.

Here’s what the FIIs and DIIs were up to;

The markets in US continued to remaining under selling pressure and briefly entered bear market territory on Friday before managing to recover in the closing hours.

The US markets are on seven week losing streak. The S&P 500 index is now down around 19% from all time highs made in January. While Dow Jones is down 15.4% and NASDAQ around 29%.

Here’s how the major global indices fared;

Things to watch out for in the coming week

After muted listings of LIC and Prudent Corporate Advisory Services, D-Street will see listing of three listings this week. Shares of Delhivery are scheduled to list on May 24th along with Venus Pipes & Tubes. While shares of Paradeep Phosphates will be listing on May 27th.

IPO of Aether Industries, a manufacturer of speciality chemicals will open for subscription on 24th May and close on 26th May. The company aims to raise around Rs. 808 crores and has set price band at Rs. 610 - 642. You can check out more details here: Everything You Need to Know About the Aether Industries IPO

Earnings to watch out for:

23rd May 24th May 25th May 26th May 27th May 28th May
Divi’s Laboratories Adani Ports Apollo Hospitals AstraZeneca Pharma India GAIL Mahindra & Mahindra
Birlasoft Balrampur Chini Mills Bata India Berger Paints Glenmark Pharma ONGC
SAIL Bank of India BPCL Colgate-Palmolive Gidrej Industries
Zomato Grasom Industries Coal India Cummins India India Cements
Ipca Laboratories Fortis Healthcare Hindalco Jindal Steel & Power
Metropolis Healthcare HEG Ltd. Muthoot Finance JSW Steel
Railtel Corporation MOIL NMDC United Spirites
National Aluminium Piramal Enterprises FSN E-Commerce Ventures
Torrent Pharma
Interglobe Aviation
Max Healthcare

Key macroeconomic events around the world:

23rd May 24th May 25th May 26th May 27th May
Japan Services PMI US FOMC Meeting Minutes US GDP Estimates (Q1) Japan CPI Inflation (MAY)
Eurozone ECB President Lagarde Speech Crude Oil Inventories Jobless Claims
Manufacturing PMI
Markit Composite PMI
Services PMI
US Fed Chairman Powell Speech
Home Sales
Services PMI
Markit Composite PMI

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


Next week is going to be fun too :slight_smile:

Nifty and Sensex retraced from day’s highs to end the volatile season on the lower side. Dow and Nasdaq futures are trading higher, signaling a positive opening for US markets.

:oil_drum: Brent Crude: 113.61 0.95%
:heavy_dollar_sign: USD INR Spot: 77.51 -0.04%
:scroll: India 10Y Bond yield: 7.388 0.39%

Nifty Auto and IT were the only sectors to end the day in green. Nifty Metal was the biggest loser, due to heavy selling sparked by the government’s steel and metal goods export duty.

Amongst the F&O stocks

:chart_with_upwards_trend: Container Corporation of India was the top gainer.

:chart_with_downwards_trend: Jindal Steel and Power was the top loser.

:page_with_curl: Earnings Update:

Divis Lab: Net Profit: Rs. 894.6 cr :arrow_up: 78.2% YoY; Revenue: Rs. 2,518.4 cr :arrow_up: 40.8% YoY.

Amararaja Batteries: Net Profit: Rs. 98.85 cr :arrow_down: 47.8% YoY; Revenue: Rs. 2,180.96 cr :arrow_up: 3.72% YoY.

:newspaper: In the news

Central government decided to cut excise duty on petrol by Rs. 8 per litre and on Diesel by Rs. 6. This will effectively reduce the price of petrol by Rs 9.5 and of diesel by Rs. 7 per litre.

RBI Governor Shaktikanta Das on Monday hinted at another interest rate hike in early June to bring down the high inflation rate which has remained above the tolerance level for the past four months.

Steel stocks plunged after the government imposed export duties, prompting steel companies to reevaluate massive capacity expansion plans. The export duty on all grades of iron ore has been raised to 50% from 30% earlier.

:earth_americas: Around the World

The ECB is likely to start raising interest rates in July and exit sub-zero territory by the end of September, as per President Christine Lagarde.

US President Joe Biden said he’ll review Trump-era tariffs imposed on imports from China amid growing calls from businesses to remove the levies, fueling a rally in the offshore yuan.

Benchmark indices failed to hold-on to the gains for the second straight session. Closing around half a percent lower. US markets too look set for lower opening as per Dow and Nasdaq futures.

:oil_drum: Brent Crude: 113.85 +0.46%

:heavy_dollar_sign: USD INR Spot: 77.5825 +0.09%

:scroll: India 10Y Bond yield: 7.359 -0.37%

Except for some minor gains in Nifty Bank and Auto indexes, all other sectoral indices closed the day in red. Nifty Media being the top dragger, down by 2.57%, followed by IT and Pharma, down by over 1.5% each.

Amongst the F&O stocks

:chart_with_upwards_trend: Coromandel International was the top gainer.

:chart_with_downwards_trend: PVR was the top loser.

:page_with_curl: Earnings Update:

SAIL: Net Profit: Rs. 2,478.82 cr :arrow_down: 28% YoY; Revenue : Rs. 30,759 cr :arrow_up: 39% YoY.

Grasim: Net Profit: Rs 813.5 cr :arrow_up: 75.7% YoY; Revenue: Rs. 6,376.4 cr :arrow_up: 45.1% YoY.

Zomato: Net Loss: Rs. 360 cr against Rs. 134 cr YoY; Revenue: Rs. 1,212 cr :arrow_up: 75% YoY.

Balrampur Chini: Net Profit: Rs. 240.5 cr :arrow_up: 2.1% YoY; Revenue : Rs. 1,279.6 cr :arrow_up: 25.5% YoY.

:newspaper: In the news

Exports rose by 21.1 % to $23.7bn during May 1-21, on account of healthy growth in various sectors, such as petroleum products, engineering, and electronic goods. During the second week of this month (May 15-21), the exports grew by about 24% to $8.03bn.

India plans to restrict sugar exports for the first time in six years to prevent a surge in domestic prices, potentially capping this season’s exports at 10 million tonnes as per Reuters.

Average credit card spends have risen to around ₹14,600 in the month of March 2022, up over 21% from Feb, and highest since October 2021.

Alembic Pharmaceuticals has received approval from the US health regulator to market Pirfenidone tablets used to treat lung disease in the American market.

:earth_americas: Around the World

Samsung group plans to raise spending by more than 30% to $360bn over the half-decade to 2026 to shore up businesses from chips to drugs as South Korea’s conglomerates grapple with growing economic and supply shocks.

UK consumer confidence declined by 2 points to minus 40, the least since records began in 1974 after a surge in cost-of-living expenses.

Malaysia’s government met with the country’s biggest poultry producers to discuss subsidies and ensure continuity of local supply as the nation moved to ban exports of chicken in the latest food protectionist move in the region.

Hoping NF Expiry at 16150 according to Max Pain.

Max Pain Snap-

IC Snap-

Nifty and Sensex ended lower for third consecutive day in another volatile session. Dow and Nasdaq futures are trading lower, indicating a negative opening for US markets.

:oil_drum: Brent Crude: 114.69 +0.91%
:heavy_dollar_sign: USD INR Spot: 77.525 -0.07%
:scroll: India 10Y Bond yield: 7.304 -0.75%

On the sectoral front, all indices ended the day in red apart from Bank Nifty, which managed to close marginally higher. Nifty IT was the top loser, down by around 3.4%, followed by Media and Realty, each down by around 2.9%.

Amongst the F&O stocks

:chart_with_upwards_trend: Container Corporation of India was the top gainer.

:chart_with_downwards_trend: Chambal Fertilisers was the top loser.

:page_with_curl: Earnings Update:

Indigo: Net Loss: Rs. 1,681.7 cr against loss of Rs. 1,147 cr YoY; Revenue: Rs. 8,020.7 cr :arrow_up: 29% YoY.

Nalco: Net Profit: Rs. 1,025.4 cr :arrow_up: 9.59% YoY; Revenue: Rs. 4,340.8 cr :arrow_up: 53.8% YoY.

Adani Ports: Net Profit: Rs. 1,320 cr :arrow_down: 21.7% YoY; Revenue: Rs. 3,607 cr :arrow_up: 6.6% YoY.

:newspaper: In the news

The Cabinet Committee on Economic Affairs approved the sale of its remaining 29.5 % stake in Hindustan Zinc as the centre looks to accelerate its disinvestment drive with some key privatization proposals hitting hurdles.

India’s palm oil imports could fall 19% to the lowest level in 11-years as soyoil, now cheaper, takes more market share because of Indonesia’s curbs on palm oil exports and New Delhi’s move to allow duty-free imports of soyoil.

Johnson & Johnson’s & Momenta filed a lawsuit against Natco Pharma, Mylan & others for patent infringement of two old patents associated with Glatiramer Acetate injection

Shares of paint companies were under pressure as Asian Paints and Berger Paints fell 6% after Grasim Industries doubled the capital expenditure for its foray into the paints business to Rs. 10,000 crore. The Aditya Birla Group firm expects to start production from the fourth quarter of 2023-24.

:earth_americas: Around the World

New Zealand raised interest rates by half a percentage point for a second straight meeting and forecasts more aggressive hikes to tame inflation.

Zimbabwe’s inflation rate jumped back into the triple digits after the central bank effectively devalued the local currency by introducing a new interbank rate.

Russia’s central bank moved up the date of its next interest-rate meeting after government officials suggested further monetary easing may be needed to help stem the ruble’s surge

Benchmark indices ended the day higher, rising by almost a percent and snapping a three-day losing streak, following global signals. US markets too, look set for a positive start.

:oil_drum: Brent Crude: 114.68 +0.27%
:heavy_dollar_sign: USD INR Spot: 77.525 0.06%
:scroll: India 10Y Bond yield: 7.294 -0.15%

Most of sector indices ended the day in positive territory. Nifty FMCG and Energy sectors closed slightly lower. The best performing sector was Nifty PSU, which gained more than 3%, followed by Nifty Metal and Bank, each rising over 2%.

Amongst the F&O stocks

:chart_with_upwards_trend: Dr Lal Path Labs was the top gainer.

:chart_with_downwards_trend: Havells was the top loser.

:page_with_curl: Earnings Update:

Colgate: Net Profit: Rs. 323.6 cr :arrow_up: 2.8 % YoY; Revenue: Rs. 1,300 cr :arrow_up: 1.3% YoY.

Coal India: Net Profit: Rs 6,715 cr​:arrow_up: 46.3% YoY; Revenue : Rs. 32,706.7 cr :arrow_up: 22.5% YoY.

Muthoot Finance: Net Profit: Rs. 960.2cr :arrow_down: 7.4% YoY; Net Interest Income: Rs. 1,749.1 cr :arrow_down: 6.6% YoY.

NALCO: Net Profit: Rs. 1,025.4 cr :arrow_up: 9.59% YoY; Revenue: Rs. 4,340.8 cr :arrow_up: 53.8% YoY.

:newspaper: In the news

Vedanta will look into buying an incremental 5% stake in Hindustan Zinc from the government, but the rest of the sovereign stake will be sold in the open market.

German Ambassador to India and Bhutan, Walter J Lindner on Thursday said the government of the European nation will start recognizing Bharat Biotech’s COVID-19 vaccine for travel purpose there from June 1.

The country’s largest mortgage lender HDFC Ltd. sold 10% of its stake in HDFC Capital Advisors Ltd. to Abu Dhabi Investment Authority for Rs. 184 crores.

:earth_americas: Around the World

U.S. benchmark natural gas prices jumped to above $9 per MMBtu for the first time since 2008 and the prices are currently 3.3 times above the five-year average. This move is driven by high LNG exports, warmer weather.

Bank of Russia cut its benchmark rate to 11% from 14%, the third interest-rate reduction in just over a month.

Benchmark indices extended their gains for the second day, gaining more than 1%, following a positive trend in global markets. US futures indicate a good start for US markets.

:oil_drum: Brent Crude: 116.87 -0.36%
:heavy_dollar_sign: USD INR Spot: 77.565 -0.01%
:scroll: India 10Y Bond yield: 7.35 0.77%

The majority of sectoral indices finished in the green, with Nifty IT and Media leading the way with gains of 2.54% and 2.49%, respectively. The worst performer was Nifty Energy, which fell nearly 1%.

Amongst the F&O stocks

:chart_with_upwards_trend: Dr Lal Path Labs was the top gainer.

:chart_with_downwards_trend: Piramal Enterprises was the top loser.

:page_with_curl: Earnings Update:

JSW Steel : Net Profit: Rs 3343.6 cr :arrow_down: 21 % YoY; Revenue: Rs. 46895 cr :arrow_up: 4.9% YoY.

GAIL : Net Profit: Rs 2683.11 cr​:arrow_up: 40.6% YoY; Revenue : Rs. 26968.21 cr :arrow_up: 73.4% YoY.

BEML : Net Profit: Rs. 133.4 cr :arrow_down: 15.5% YoY; Revenue : Rs. 1683.6 cr :arrow_down: 6.8% YoY.

:newspaper: In the news

Adani Enterprises has signed a definitive agreement to buy a 50% stake in General Aeronautics Private Limited, this allows for robotic drones and drone-based solutions for crop protection, precision farming, and yield monitoring in the agricultural sector, using AI and analytics.

Tata Motors on Friday said it filed a record 125 patents related to powertrain technologies in the last fiscal. The company said the number of patents filed in the last financial year was the highest ever for the auto major so far.

Siemens India to sell its large drives applications business to parent’s arm for Rs 440 cr

BPCL remained subdued in an otherwise firm market, as the government has called off the privatization process of the state-owned oil marketing company for now.

:earth_americas: Around the World

Britain announced a 25 % windfall tax on oil and gas producers’ profits on Thursday, alongside a 15 billion pound ($18.9 billion) package of support for households struggling to meet soaring energy bills.

BP Plc said it will look again at its plans in the UK, raising questions about whether a £5 billion windfall tax on oil and gas profits announced by the government included enough incentives to preserve investment.

The U.S. economy shrank in the first three months of the year even though consumers and businesses kept spending at a solid pace, the government reported Thursday in a slight downgrade of its previous estimate for the January-March quarter.

Australian retailers post a fourth straight month of sales gains, suggesting households are so far weathering an inflation spike.