Weekly Trading Diary: 29th August to 2nd September 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;

Benchmark indices snapped their five-week winning streak in the week ended 26th August. Nifty ended the week down by over 1.1% while Sensex declined by over 1.3%.

On the sectoral front, Nifty IT was the top dragger as the index slipped around 4.5% in the week, this was followed by Nifty Pharma, down by 1.7%. PSU Pank index was the top weekly performer, gaining 4.4%.

The US markets cracked over 3% on Friday after Fed Chairman, Jerome Powell’s comments that the Fed will not be easing its stance anytime soon and will continue its tough stance against inflation, at the Jackson Hole symposium. For the week, the US markets ended down by over 4%.

Here’s how the major indices fared over the previous week;

Things to watch out for in the coming week;

Key macroeconomic events to watch for;

29th August 30th August 31st August 1st September 2nd Spetember
US Consumer Confidence (AUG) India GDP Growth (Q1 FY23) Eurozone Manufacturing PMI (AUG) US Unemployment Rate (AUG)
Infrastructure Output (JUL) Unemployment Rate (AUG) Nonfarm Payrolls (AUG)
China Manufacturing PMI (AUG) US ISM Manufacturing PMI (AUG)
Non-Manufacturing PMI (AUG) Jobless Claims
Composite PMI (AUG)
Eurozone CPI Inflation (AUG)
US Crude Oil Inventories

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

The US Federal Reserve chairman hinted at tighter rate hikes to tackle inflation, triggering a global sell-off. Nifty and Sensex recovered slightly, ending the choppy day down 1.4%.

:oil_drum:Brent Crude: 101.14 +0.44%
:heavy_dollar_sign:USD INR Spot: 79.9625 0.12%
:scroll:India 10Y Bond yield: 7.253 0.50%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Escorts was the top gainer.

:chart_with_downwards_trend: Info Edge India was the top loser.

:newspaper: In the news

Highlights from the reliance AGM :

  • Jio will invest 2 lakh crore and will be partnering with Qualcomm in launching the 5g network in select cities by Diwali this year with pan India coverage expected by next year-end.
  • Reliance is to enter the FMCG business to power its retail business this year and the company is expected to invest 75000 cr in oil to chemical biz over 5 years.

  • Meta and Jio Platforms have launched an end-to-end shopping experience within WhatsApp, allowing users to browse the JioMart store, add products to their cart, and make purchases all within the app.

  • Reliance Industries Ltd will invest Rs 75,000 crore in petrochemical capacity expansion over the next five years. Mukesh Ambani stated that the investments will go toward building a PTA plant, boosting polyester capacity, tripling vinyl chain capacity, and building a chemical unit in the UAE.

Dow and Nasdaq fell 3% and 4%, respectively, as Federal Reserve Chair Jerome Powell issued a fresh warning to investors doubting his resolve to fight inflation, stating that interest rates are heading higher and will stay there for some time.

India’s exports of diesel fell by 11% and those of petrol by 4.5% in July as a result of the government imposing a windfall profit tax on such sales: Data from the Oil Ministry’s Petroleum Planning and Analysis Cell.

The country’s foreign exchange reserves are at two year lows as reserves fell by $6.69 billion to $564 billion for the week ended August 19, as per the latest data released by the RBI.

European benchmark power prices surpass 1,000 euros for the first time ever, signaling a potential energy crisis for the continent.

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Benchmark indices rebounded from yesterday’s dip and gained 2.7% following positive global cues. Dow and Nasdaq futures indicate a good start for US markets.

:oil_drum:Brent Crude: 101.29 -3.58%
:heavy_dollar_sign:USD INR Spot: 79.45 -0.64%
:scroll:India 10Y Bond yield: 7.189 -0.88%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Bajaj Finserv was the top gainer.

:chart_with_downwards_trend: Dr. Lal PathLabs was the top loser.

:newspaper: In the news

Tata AIA Life Insurance announced a bonus of INR 861 crores for all eligible participating policyholders for FY2022. This is the fifth consecutive year of bonus payment, and it is 20% higher than the bonus paid in FY2021.

Gautam Adani, the chairman of the Adani Group, surpassed France’s Bernard Arnault in the Bloomberg Billionaires Index to become the third richest person in the world, with net worth of $137.4 billion.

Sri Lankan President Ranil Wickremesinghe stated that talks with the IMF on a bailout package had reached the final stage as he presented an interim budget in Parliament.

Meta announced that India will be the first country to allow advertisers to pay for their ad campaigns in no-cost EMI over three months on the backdrop of a tough operating environment due to the global economic downturn.

The Bank of England reported that annual growth in credit card borrowing in the UK rose by 13% the highest rate since 2005. The average interest rate on new mortgages rose by 18 basis points last month to 2.33%, a 6-year high, up from 1.5% in November.

Benchmark indices opened gap down and finished lower by around 1.25% following weak global trends. US futures too are trading lower.

:oil_drum:Brent Crude: 94.04 -0.94%
:heavy_dollar_sign:USD INR Spot: 79.555 0.13%
:scroll:India 10Y Bond yield: 7.215 0.38%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: GMR Infrastructure was the top gainer.

:chart_with_downwards_trend: Zee Entertainment was the top loser.

:newspaper: In the news

India’s fiscal deficit for the first four months of FY23 stood at Rs 3.41 lakh crores, accounting for 20.5% of the full-year target.

The gross GST revenue collected in the month of August 2022 jumped 28% YoY at Rs. 1.43 lakh crore compared to Rs. 1.12 lakh crore in August 2021. For six months in a row now, the monthly GST revenues have been more than Rs. 1.4 lakh crore mark.

UPI reached a new high in terms of both volume and value of transactions in August. It saw 6.57 billion transactions worth Rs 10.72 trillion, a rise of 4.62% and 0.95% MoM basis. The volume of transactions rose by 85% and the value by 67.85% YoY: NPCI’s published data

India’s GDP expanded at a slower-than-expected 13.5% in the three months ending June 30. GDP fell 9.6% sequentially in the fiscal first quarter compared to the March quarter of 2021-22. The June quarter’s growth rate was lower than the Reserve Bank’s expectation of 16.2%.

The output of India’s eight infrastructure industries fell to a six-month low of 4.5% on an annualized basis in July, down from double-digit growth in June. Core sector growth was 9.9% in July of last year: Department for Promotion of Industry and Internal Trade (DPIIT)

Campa, a local soft drink brand founded in the 1970s by the Pure Drinks Group, has been acquired by Reliance Industries, which announced its foray into the FMCG industry earlier this week.

Petrol sales in India rebounded by 5.8% to 2.81 million tonnes in August but diesel saw consumption drop 4.9% to 6.11 million tonnes, from 6.42 million tonnes in July as rains in several parts chipped away demand in some sectors as per the preliminary industry data.

Inflation in Eurozone surged to new highs of 9.1% year-on-year in August on the back of soaring fuel prices caused by the Russia-Ukraine war.

South Korean trade deficit almost doubled to US$9.5 billion and touched record highs in August as the won hovered around a 13-year-low on the back of global energy prices remaining elevated, driving up import costs and squeezing exporters.

Benchmark indices reversed in the final trading hour, ending the volatile session on a flat note. Dow and Nasdaq futures indicate a muted start for US markets as well.

:oil_drum:Brent Crude: 93.98 1.97%
:heavy_dollar_sign:USD INR Spot: 79.795 0.30%
:scroll:India 10Y Bond yield: 7.235 0.28%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Astral was the top gainer.

:chart_with_downwards_trend: Coromandel International was the top loser.

:newspaper: In the news

Adani Enterprises rose 4% to a record high of Rs 3.369 after the NSE announced its inclusion in the benchmark Nifty 50 index. Adani Enterprises’ market price has more than doubled in the last six months, from Rs 1,641.

NTPC hit a 52-week high of Rs 166.35 before settling at 162, after ArcelorMittal, Brookfield, and the Canada Pension Plan Investment Board emerged as among over a dozen entities interested in buying a stake in the company’s green energy business, NTPC Green Energy (NGEL).

The value of India’s FMCG market grew 6% in August compared to July, reversing the previous three months of sequential decline, as demand for personal care and commodity products surged. Sales of groceries rose 23% compared to a year ago, according to the latest report by Bizom.

UN index of world food costs fell 1.9% in August from the previous month, as global food prices fell for the fifth month in a row as demand for some products weakened and supplies rose seasonally. The index has remained at its lowest point since January.