Weekly Trading Diary: 27th June to 1st July 2022

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

Recap of what the markets were up to in the week gone by:

Benchmark indices bounced back sharply in the week ended 24th June after over a 5% fall in the week before. Sensex surged over 1350 points, while Nifty rose by over 400 points.

Coming to sectoral indices, all sectoral indices except Metal and Energy indexes. Nifty Auto was the top performer, rising by 6.9%.

Major indices worldwide also gained in the week, most notably US indices, surging between 5.5 to 7.5 per cent.

Here’s how the major markets performed;

Things to watch out for in the coming week;

27th June 28th June 29th June 30th June 1st July
US Durable Goods Orders (MAY) US Consumer Confidence Index (JUN) Japan Retail Sales (MAY) India Fiscal Deficit (MAY) India S&P Global Manufacturing PMI (JUN)
US GDP Estimates (Q1) Japan Industrial Production (MAY) Auto Sales (JUN)
Crude Oil Inventories China Manufacturing PMI (JUN) China Manufacturing PMI (JUN)
Non-Manufacturing PMI (JUN) Eurozone Manufacturing PMI (JUN)
UK GDP Estimates (Q1) CPI Inflation (JUN)
US Jobless Claims US ISM Manufacturing PMI (JUN)

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

Benchmark indices continued their upward momentum by gaining around 0.8% each, following strong global cues. US futures are trading higher, indicating a positive opening for US markets.

:oil_drum:Brent Crude: 113.59 1.02%
:heavy_dollar_sign:USD INR Spot: 78.34 -0.01%
:scroll:India 10Y Bond yield: 7.409 0.47%

All sectoral indices finished the day in the green. Nifty IT index rose the most, by 2.05%. Nifty Media and Metal both gained 1.52%.

Amongst the F&O stocks

:chart_with_upwards_trend: City Union Bank was the top gainer.

:chart_with_downwards_trend: HDFC AMC was the top loser.

:newspaper: In the news

The board of Bajaj Auto approved a buyback of up to Rs. 2,500 crore, via open market, at a price net exceeding Rs. 4,500 per share. The buyback represents 9.61% of the total paid-up share capital.

Shares of Zomato tumbled 6.6% on Monday after the company’s Board of Directors approved a proposal to acquire a cash-strapped quick commerce company Blinkit for Rs. 4,447 crore.

India saw 9.36 billion transactions amounting to Rs 10.25 trillion in the first quarter (January-March period) via various payment modes led by UPI with a market share of 64% in volume and 50% in terms of value, according to the report by Worldline.

Russia defaulted on its foreign-currency sovereign debt for the first time in a century, the culmination of ever-tougher Western sanctions that shut down payment routes to overseas creditors.

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Benchmark indices recovered from the day’s lows and closed flat as crude oil prices surged and the rupee hit a new low against the US dollar. US futures indicate a good start for US markets.

:oil_drum:Brent Crude: 117.11 1.5%
:heavy_dollar_sign:USD INR Spot: 78.77 0.55%
:scroll:India 10Y Bond yield: 7.466 0.46%

Except for Nifty Pharma and Bank indexes, all other indices ended the day in the green. Nifty Metal was the best performer, gaining more than 1.6%, followed by Nifty Auto, which gained 1.25%.

Amongst the F&O stocks

:chart_with_upwards_trend: ONGC was the top gainer.

:chart_with_downwards_trend: Chambal Fertilisers was the top loser.

:newspaper: In the news

Mukesh Ambani stepped down as director of Reliance Jio, Akash Ambani appointed as chairman, with Pankaj Mohan Pawar taking over as the MD of the company. The announcement comes days ahead of the RIL AGM where street is expecting demerger plans from the oil-to-telecom conglomerate.

Tata Motors on announced that it will increase the prices of its commercial vehicles, in the range of 1.5 to 2.5% from July 1 to partially offset rising input costs.

China reduced quarantine times for inbound travelers by half, the biggest shift yet in a Covid-19 policy that has left the world’s second-largest economy isolated as it continues to try and eliminate the virus.

Emerging market equities are on track for their worst first-half performance in 24 years, as investors fret over high inflation and a potential hit to the global economy from monetary tightening. The MSCI Emerging Markets Index has fallen about 17% this year through Monday.

Nifty and Sensex ended the choppy session on a lower note, snapping a four day winning streak following weak global cues. US futures indicate a muted start for US stocks.

:oil_drum:Brent Crude: 118.87 0.6%
:heavy_dollar_sign:USD INR Spot: 78.965 0.25%
:scroll:India 10Y Bond yield: 7.459 -0.09%

Nifty Energy index was the top performer, rising over 2%, followed by minor gains in the Nifty Metal, Realty, and Auto indices. The worst performing sectoral indices were Nifty IT and FMCG indices, each falling close to 1.3%.

Amongst the F&O stocks

:chart_with_upwards_trend: Bosch was the top gainer.

:chart_with_downwards_trend: Max Financial Services was the top loser.

:newspaper: In the news

The GST Council in its meeting held today, approved changes in tax rates on some goods and services while allowing states to issue an e-way bill for intra-state movement of gold and precious stones.

Multiplex chain operator PVR expects the movie exhibition industry to bounce back in FY23 and plans to open as many as 125 screens during the year, its highest ever tally in a year.

A devastating drought weighing on Somalia’s economy is poised to push inflation close to 10%, the highest level in more than 15 years, by the end of the year, according to central bank Governor Abdirahman Abdullahi.

Benchmark indices fell from day’s highs to close marginally lower. Dow and Nasdaq futures are trading lower, signalling a weak opening for US markets.

:oil_drum:Brent Crude: 112.02 -3.11%
:heavy_dollar_sign:USD INR Spot: 78.9675 0.00%
:scroll:India 10Y Bond yield: 7.45 -0.12%

Nifty 50 market breadth for the day:

Here’s how the major sectors fared.

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: Delta Corp. was the top loser.

:newspaper: In the news

Gross NPA ratio of scheduled commercial banks declined to low of 5.9% from 7.4% in March ‘22. While the Net NPA ratio fell by 0.70% to 1.7% during the same period; as per RBIs Financial Stability Report.

The consumer sentiment index recovered marginally in June after declining in previous three months. As per CMIE the 30-day moving average ICS was 1.3% higher than its level in May.

The board of JB Chemicals & Pharmaceuticals approved proposal to acquire four pediatric brands from Dr. Reddy’s Laboratories for around Rs. 98 crores.

French inflation quickened to the fastest since the Euro was introduced, raising pressure on President and the European Central Bank to do more to contain the shock for firms and households.

UK household incomes fall for a fourth consecutive quarter, the longest run of declines since records began in 1955, as the cost of living crisis worsens.

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Benchmark indices recovered by around 1.6% from day’s lows to close marginally lower. US markets too look set to open in the red.

:oil_drum:Brent Crude: 112.14 +2.90%

:heavy_dollar_sign:USD INR Spot: 79.025 +0.07%

:scroll:India 10Y Bond yield: 7.424 -0.35

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: Muthoot Finance was the top gainer.

:chart_with_downwards_trend: ONGC and Reliance saw a big sell-off following Government’s decision to impose additional taxes on oil exports.

:newspaper: In the news

India’s Manufacturing PMI fell to 53.9% in June from 54.6% in May. The lowest in nine months.

GST collections in June were at Rs. 1.44 lakh crores, up 56% compared to June 2021.

India’s infrastructure output grew at 18.1% in May to a 13-month high.

The government has imposed a cess of Rs. 23,250 per tonne on domestic crude production. Along with additional taxes on the export of petrol and diesel at Rs. 6 per litre on petrol and ATF and Rs. 13 per litre on diesel.

Government plans to take all eight subsidiaries of Coal India public. The coal ministry approved a draft cabinet note to sell 25% of Coal India’s consulting unit, Central Mine Planning & Design Institute, and also Bharat Coking Coal to the public.

Reliance Brands, the retail brand licencing arm of RIL announced a partnership with Pret A Manger, UK-based food and organic coffee chain to launch the brand in India.

Inflation in Eurozone touched a new record high in June soaring to 8.6%.