Weekly Trading Diary: 31st January to 4th February 2022

Tradingqna · January 30, 2022, 11:58am

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

It was another volatile week for equity markets. Sensex ended the week down by 3.1% while Nifty was down by 2.9%.

Globally, other Asian markets were under heavy selling pressure. While major European indices too ended the week in negative territory.

US markets closed seesaw week on a positive note. S&P 500 and Dow posting weekly gains for the first time in 2022.

All sectoral indices apart from Nifty PSU Bank and Nifty Bank ended the week in red.

Things to watch out for in the week:

All eyes this week will be on February 1st as Finance Minister will be presenting Union Budget.

IPOs

IPO of Vedant Fashions, owner of Manyavar will open for subscription on 4th February, with a price band set between Rs. 824 - 866. The IPO will close on 8th February. More details on the Vedant Fashions IPO here: Everything You Need to Know About the Vedant Fashions IPO

Important earnings announcements for the week:

31st Jan	1st Feb	2nd Feb	3rd Feb	4th Feb	5th Feb
BPCL	Aditya Birla Fashions	Apollo Tyres	Aditya Birla Capital	Alkem Laboratories	Aarti Industries
DLF	Adani Ports	Balrampur Chini Mills	Cadila Healthcare	Astral Limited	Affle
HPCL	Cholamandalam Investment Finance	Dabur India	Emami Limited	Divi’s Laboratories	Bank of Baroda
IOC	Indian Hotels	Gillette India	GAIL	InterGlobe Aviation	State Bank of India
Tata Motors	Jindal Steel and Power	HDFC	Godrej Properties	Paytm
UPL	Shree Cement	Mahindra & Mahindra Financial Services	ITC Limited	REC Limited
	Tech Mahindra	Muthoot Capital Services	Lupin Limited	Siemens Limited
		TATA CONSUMER PRODUCTS	Pfizer Limited	Tata Steel
		Zee Entertainment Enterprises	Titan
			Varun Beverages

Global economic events to watch out for:

31st Dec		1st Feb		2nd Feb		3rd Feb		4th Feb
Retail Sales (DEC)	India	Union Budget	Eurozone	CPI Inflation	Japan	Services PMI (JAN)	Eurozone	Retail Sales
	Eurozone	Manufacturing PMI (JAN)	US	Nonfarm Employment	Eurozone	ECB Interest Rate Decision	US	Nonfarm Payrolls (JAN)
	US	Manufacturing PMI (JAN)				Services PMI (JAN)		Unemployment Rate (JAN)
						Markit Composite PMI (JAN)
					Britain	BoE Interest Rade Decision
						Services PMI (JAN)
						Composite PMI (JAN)
					US	Jobless Claims
						Non-Manufacturing PMI

Tradingqna · January 31, 2022, 3:38pm

Nifty and Sensex ended the day in the green, climbing more than 1.4%. While Dow and Nasdaq futures indicate a mixed start for US markets.

Brent Crude: 89.10 +0.58
USD-INR Spot: 74.674 -0.50%
India 10Y bond yield: 6.686 -1.21%

All sectors managed to close on a positive note. Nifty Realty index leading the gains, up by over 3.14%.

Amongst the F&O stocks

Info Edge Ltd was the top gainer.
Atul Ltd was the top loser.

Earnings Update:

Sun Pharma’s 3rd-quarter earnings increased by 11% year on year to Rs 2,058.80 crore.

Indian Oil’s consolidated net profit increased by 41% in Q3, and the company announced an interim dividend of Rs 4.

Infibeam Avenues net profit rises by 89% to Rs 18 crore, and the company approves a bonus share issue.

LT Foods, a leading basmati rice company, reported an 11.10 % increase in consolidated net profit to Rs 76.92 crore for the December 2021 quarter.

BPCL Q3 net profit up by 47% year on year to Rs 2,805 crore, while revenue increased by 35%.

Tata Motors reported a consolidated net loss of Rs 1,451.05 crore for the December quarter, compared to a profit of Rs 2,941.48 crore the previous year.

UPL Ltd reported a net profit of 937 crores for the Q3, a rise of 18% over the previous year. In the same quarter the previous year, it was 793 crore.

Kotak Mahindra Bank raised its standalone net profit by 14.94 % year on year (YoY) to Rs 2,131 crore, up from Rs 1,854 crore in the same period last fiscal year.

Ajanta Pharma Q3 net up 9% at Rs 192 crore.

In the news

AGS Transact Technologies disappoints on its debut, falling 8% below its IPO price.

Dalmia Bharat to invest Rs 9,000 crore in expanding cement capacity. Story here.

Around the world

Japan’s Quarterly Output Gain Signals Growth Return Before Omicron.

US Consumer spending drops with inflation hitting a 40-year high. Story here.

Prakashsingh · February 1, 2022, 3:10am

Good Morning Folks,

SGX is indicating a gap up near 17500 levels which means the risk reward for incremental upside comes down a bit.

Where we start is although important, But what’s most important is how we end the day.

One more suggestion (Maybe unpopular) : Please do trade today. If not in F&O , atleast in cash with small amts. Missing high volatile days can be practical for long term investors and seasoned traders. But for beginners, this experience becomes very important to handle any volatility on other days. maybe trade, 10% of ur normal volumes…but I’d definitely recommend to trade the volatility.

For, F&O traders, esp options, please do make a note of the IV crush as the event’s main announcements finish. Premium decay can be pretty rapid.

Wishing u all a great Trading day ahead.

Tradingqna · February 1, 2022, 2:11pm

Benchmark indices surged more than 1.38% for the second day in a row, signaling that the market supports the union budget. Dow and Nasdaq futures indicate a negative start for US markets.

Brent Crude: 89.07 -0.21%
USD-INR Spot: 74.79 +0.24%
India 10Y bond yield: 6.829 +2.17%

Majority of sectoral indices finished the day in the green. The Nifty metal was the leading gainer, up 4.49%. Nifty Auto was the biggest loser, down 0.75%.

Amongst the F&O stocks

Navin Fluorine International Ltd was the top gainer.
Hindustan Petroleum was the top loser.

Earnings Update:

Adani Ports reported a net profit of Rs 1,472 crore for the third quarter, a 5.7% drop in year on year. In the previous year, the company had a net profit of Rs 1,561 crore.

Indian Hotels Co Ltd (IHCL) declared a consolidated net profit of Rs 95.96 crore. The consolidated revenue from operations was Rs 1,111.22 crore, up from Rs 559.86 crore the previous year.

Tech Mahindra’s Q3 revenue from operations was 11,451 crore, increasing 18.7% year on year. The company’s overall net profit increased by 4.5% to Rs. 1,369 crore.

Hindustan Petroleum Corporation (HPCL) reported a 43% year-on-year decline in consolidated net profit to Rs 1,353 crore for the quarter, while revenue increased 33.56% year on year to Rs 103488.75 crore.

In the news

Finance Minister Nirmala Sitharaman on Tuesday announced that the gross GST collections for the month of January 2022 is at Rs 1,40,986 crore, which is the highest since the inception of GST.

Maruti Suzuki sales dip 4% to 1,54,379 units in January. “The shortage of electronic components had a minor impact on the production of vehicles which are primarily sold in the domestic market. The company took all possible measures to minimize the impact,” MSI stated.

Key announcements #Budget2022.
https://twitter.com/tradingqna/status/1488396669909860352

Around the world

Euro zone unemployment fell to its lowest level on record in December, data showed on Tuesday, The European Union’s statistics office Eurostat said the unemployment rate in the 19 countries sharing the euro fell to 7.0% of the workforce from a revised 7.1% in November – the lowest rate on record since measurements started in April 1998.

UK house prices show the strongest start to year since 2005. Property price index rises by annual rate of 11.2% in January surpassing economists’ expectations

Prakashsingh · February 2, 2022, 3:27am

Good Morning Mitro,

Strong US markets close means a gap up opening potentially here. With the budget event ending, Market will be back to global and local triggers along with keeping an eye on the monetary policy which is btwn 7-9 Feb.

I’m personally expecting nifty to be range bound now…btwn 17400-800. But premiums arent too attractive to initiate trades so i’ll give it a miss this time around and focus on stock specific action.

Tradingqna · February 2, 2022, 12:50pm

Benchmark Indices continued with their upward momentum for the week. Rising for the third straight session. US stocks look set for a positive opening as futures trade higher.

Brent Crude: 88.91 -0.28%
USD-INR Spot: 74.84 +0.07%
India 10Y bond yield: 6.882 +0.79%

All sectors closed the day in the green, with Nifty PSU topping the list with gains of 3.41%.

Amongst the F&O stocks

Dr. Lal Path Labs was the top gainer.
Jubilant FoodWorks was the top loser.

Earnings Update:

Dabur: Revenue: Rs. 2,941.75 cr 7.8% YoY; Net Profit: Rs. 504 crore 2.2% YoY.

HDFC Ltd : Net Profit: Rs 3260.7 cr 11.4% YoY | Net Interest Income at Rs. 4284 cr against Rs. 4,005 cr YoY.

Jubilant Food: Revenue: Rs. 1,210.77 cr 13.23% YoY; Net Profit: Rs. 133.19 cr 7.48% YoY.

Tata Consumer Products: Revenue: Rs. 3,208.4 cr 4.5% YoY; Net Profit: Rs. 265.1 21.5% YoY.

In the news

Tata Teleservices has decided not to convert interest related to AGR dues into equity, as the interest amount eligible for such conversion has turned out to be far lesser than the company’s own calculations.

Exports rose 23.69% to $34.06bn in January owing to a robust performance by engineering, petroleum as well as gems and jewelry sectors. Though the trade deficit widened to $17.94bn during the month, according to provisional figures of the commerce ministry.

Around the world

Eurozone inflation hits record 5.1%, driven by higher energy prices. Well ahead of expectations for a drop to 4.4%.

Oil prices climbed toward seven-year highs as U.S. crude stocks confirmed strong demand and tight supplies. Investors remained cautious ahead of an OPEC+ meeting later in the day.

Prakashsingh · February 3, 2022, 3:07am

Good Morning Folks,

We had a strong close yesterday but with tech stocks weakness overnight (Meta is -23%, Twitter, Spotify going down), Nasdaq is slated to open gapdown to the tune of -2% currently. What needs to be seen is how much of that sentiment will affect our markets

As far as Nifty is concerned , we have reached the resistance band and the risk reward for longs in index is not favourable at these zones. I will look to short btwn 17820-850 zones today

Tradingqna · February 3, 2022, 12:50pm

Nifty and Sensex ended their 3-day gaining streak, falling by over 1.2% each. Nasdaq futures are down by over 2.3%, indicating a rough opening for US markets.

Brent Crude: 88.21 -1.14%
USD-INR Spot: 74.86 +0.03%
India 10Y bond yield: 6.889 +0.13%

Nifty Auto was the sole gainer, while all other sectors closed in negative. IT and Real Estate were the top losers, with 2.05% and 1.74% declines, respectively.

Amongst the F&O stocks

Balrampur Chini Mills Ltd was the top gainer.
Godrej Properties Limited was the top loser.

Earnings Update:

Titan: Revenue: Rs. 9515 Cr:arrow_up: 30.6% YoY; Net Profit: Rs. 987 crore 135.5% YoY.

GAIL: Revenue: Rs. 25769.75 cr 66.74% YoY; Net Profit: Rs. 3288 cr 121.1% YoY.

Cadila: Revenue: Rs.3655 cr 0.6% YoY; Net Profit: Rs. 500 cr 5.2% YoY.

Emami: Revenue: Rs 971.85 cr 4.1% YoY; Net Profit: Rs. 219.52 cr 5.05% YoY.

In the news

India’s services PMI fell to a six-month low at 51.5 in January amid the escalation of the pandemic, reintroduction of restrictions, and inflationary pressures.

CCI imposed a collective penalty of over Rs 1,788 crore on five tyre companies for indulging in alleged cartelization. Companies include Apollo Tyres, MRF, CEAT, JK Tyre and Birla Tyres.

Emami founders step down from executive roles paving the way for next generation leaders at the helm.

Around the world

Facebook shares tumbled more than 20% in extended trading on Wednesday after the company reported disappointing earnings, gave weak guidance, and said user growth has stagnated.

Turkey’s annual inflation soared to a 20-year high of 48.7% in January, fueled by unorthodox interest rate cuts and a resulting crash in the currency late last year.

Prakashsingh · February 3, 2022, 2:11pm

Nifty didnt reach this zone and instead fell from 17780 and almost touched 17500 near closing. Tomorrow will be interesting .

Prakashsingh · February 4, 2022, 4:40am

Good Morning Folks.

Market is pretty volatile and indecisive currently, I’m giving it a miss in index trading today for now.

Will look for stock specific moves if any and update the thread here.

Tradingqna · February 4, 2022, 12:57pm

Indian markets ended the choppy session on a lower note. Though ended the week up by around 2.4%. US markets look set for a mixed opening.

Brent Crude: 92.81 +1.87%
USD-INR Spot: 74.695 -0.22%
India 10Y bond yield: 6.872 -0.25%

On the sectoral front, Nifty Metal was the top performing index for the day, up by around 1.2%. Nifty Realty was the top dragger, down by 2.76% followed by PSU Bank (-1,92%) and Media (-1.89%).

Amongst the F&O stocks

Torrent Power was the top gainer.
Godrej Properties Limited was the top loser.

Earnings Update:

ITC: Revenue: Rs. 16806.9 cr 31.7% YoY; Net Profit: Rs. 4156.2 cr 12.7% YoY.

REC: Revenue: Rs. 3550.4 cr 21.4% YoY; Net Profit: Rs. 250.8 cr 15.1% YoY.

Shree Cement : Revenue: Rs. 3551.8 cr 7.3% YoY; Net Profit: Rs. 492 cr 21.4% YoY.

Bank of India: Net Profit: Rs 1027.4 cr 90% YoY; Net Interest Income: Rs. 3408 cr 8.9% YoY.

In the news

FMCG sales declined by 10 percent in January 2022, compared to the previous month, data from retail intelligence platform Bizom showed, both on the back of the month seeing the peak of the third wave, and a lull post the festive season.

India will more than double the area that is under exploration and production of oil and gas to 0.5 mn square km by 2025 and to 1mn sq km by 2030 with a view to raising domestic output and cut reliance on imported fuel, Petroleum Minister Hardeep Singh Puri said at the World Energy Policy Summit 2022.

Around the world

The Bank of England raised interest rates. It’s the second time in three months. While the European Central Bank kept rates unchanged but is no longer ruling out an increase in 2022.

IMF chief says ‘too early to say if world facing sustained inflation but warned that failure to make economies more resilient to future shocks could lead to big problems.

Crude Oil prices surged above $90 a barrel for the first time since October 2014.