Weekly trading diary: 4th -8th September 2023

Welcome to the weekly trading diary, a thread for discussing your trades, strategies, ideas, news, stories, etc.

Things to look forward to in the coming week;

Macroeconomic events

4th September 5th September 6th September 7th September 8th September
India Services PMI (August) US Services PMI (August) Eurozone GDP Growth (Q2 CY23) Japan GDP Growth (Q2 CY23)
China Services PMI (August) Composite PMI (August) US Jobless Claims
Composite PMI (August) Crude Oil Inventories
UK Services PMI (August)
Composite PMI (August)
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Services PMI? What does that mean? How is it going to affect the markets?

Services and manufacturing PMI is survey undertaken with many companies to understand how’s the sentiment on ground. Questions may include how’s deal flow with clients? How’s the scenario with employees? etc.

Just like other domestic economic indicators, these give us a picture about what’s happening in the economy which will eventually impact markets.

There’s also one more side to it, as US , China and Europe are some of the most important markets, their PMI numbers affects foreign exchange rates, bond yields, interest rates and eventually the direction of the markets.

You can read more on this here: https://www.pmi.spglobal.com/Public/Home/PressRelease/a9e85f53836b4e1ab57110ec8ffbc1a8

Benchmark indices rose for the second consecutive session on the back of good domestic macroeconomic data and an upward trend in global markets. US futures are trading higher, signaling a positive start.

:oil_drum:Brent Crude: 88.58 0.03%
:heavy_dollar_sign:USD INR Spot: 82.7373 0.09%.
:scroll:India 10Y Bond yield: 7.206 0.43%

Nifty 50 heat map.

More stats at: technicals.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Dalmia Bharat was the top gainer.

:chart_with_downwards_trend: Escorts Kubota was the top loser.

:newspaper: News

India’s Jio Infocomm is in talks to secure $2 billion in offshore loans with BNP Paribas as the lead arranger. These funds will be used to purchase 5G network gear from Ericsson.

The credit sanctioned by finance companies fell to 5.7% YoY in Q1FY24, compared to over 100% YoY growth in Q1FY23, mainly due to a high base effect from April-June 2022 and a significant drop in home loan sanctions affecting Q1FY24 growth: FIDC Data

White-collar hiring in India declined 6% YoY in August due to cautious sentiment in sectors like IT, insurance, auto, healthcare, and BPO. Job postings numbered 2,666, compared to 2,828 the previous year, but showed a 4% increase sequentially: Naukri JobSpeak Index.

IDFC First Bank witnessed a significant surge of over 5% following news of US-based GQG Partners acquiring 17.1 crore shares, equivalent to a 2.58% stake in the bank, at Rs 89 apiece, amounting to approximately Rs 1,527 crore.

India’s power consumption in August surged over 16% YoY to 151.66 billion units, attributed to increased use of cooling appliances during hot weather. This exceeded the previous year’s 130.39 billion units, and 127.88 billion units in August 2021, as per government data.

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Benchmark indices closed in the green for the third straight session despite weak global cues. US futures are trading lower.

:oil_drum:Brent Crude: 90.38 1.53%
:heavy_dollar_sign:USD INR Spot: 82.944 0.25%.
:scroll:India 10Y Bond yield: 7.208 0.06%

Nifty 50 heat map.

More stats at: technicals.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Jubilant FoodWorks was the top gainer.

:chart_with_downwards_trend: Indiabulls Housing Finance was the top loser.

:newspaper: News

SEBI plans to introduce one-hour trade settlements and subsequently move to instantaneous settlement, announced SEBI Chairperson Madhabi Puri Buch at the Global Fintech Fest 2023.

JSW Group might buy a stake in MG Motor India within two months, with the first JSW electric car potentially launching next year. The deal, valuing MG Motor India at $1.2-1.5 billion, begins with a minority stake purchase and aims to eventually secure a majority stake in the automaker.

Torrent Pharmaceuticals is leading in the race to acquire Cipla, offering more than 30% higher than Blackstone’s bid. Torrent’s all-cash offer of approximately Rs 1,200 per share, closer to Cipla’s current market price, is expected to result in a deal within 2-3 weeks.

Ather Energy, the electric scooter manufacturer, is set to secure Rs 550 crore from its largest shareholder, Hero MotoCorp. Hero MotoCorp’s board has approved an investment in Ather Energy’s rights issue. Hero MotoCorp currently holds a 34.2 percent stake in Ather.

Benchmark indexes rebounded in the final hour, erasing earlier losses, and closed slightly higher amid weak global market conditions. US markets look set for a negative opening.

:oil_drum:Brent Crude: 89.67 -0.42%
:heavy_dollar_sign:USD INR Spot: 83.0902 0.18%.
:scroll:India 10Y Bond yield: 7.21 0.06%

Nifty 50 heat map.

More stats at: technicals.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Vodafone Idea was the top gainer.

:chart_with_downwards_trend: Hindustan Copper was the top loser.

:newspaper: News

The consumer business of the Tata Group is reportedly negotiating to acquire at least 51% of iconic Indian snack food company Haldiram.

E-permits surged to a record 93.4 million in August, reflecting robust economic activity, potentially boosting September’s GST revenue. This aligns with the strong demand and output growth observed in August’s manufacturing PMI.

Finance Minister Nirmala Sitharaman highlights global cooperation as essential to address cryptocurrency and cyber threats at the G20 summit, underscoring the need for cryptocurrency regulation in building a responsible financial ecosystem.

RBI Governor Shaktikanta Das stated that monetary policy considers future projections over past data, with recent inflation numbers carrying less weight. He also expects inflation to moderate starting this month.

The RBI is investigating a number of foreign-owned or controlled enterprises for possible violations of forex laws. The firms were contacted by the banking authority and asked whether they wanted to settle the dispute. If firms do not settle, the central bank may impose penalties.

Nifty and Sensex extended their gains for the fifth trading session, rising over half a percent on the day. Dow and Nasdaq futures are trading lower.

:oil_drum:Brent Crude: 90.22 -0.42%
:heavy_dollar_sign:USD INR Spot: 83.1829 0.11%.
:scroll:India 10Y Bond yield: 7.178 -0.44%

Nifty 50 heat map.

More stats at: technicals.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Coal India was the top gainer.

:chart_with_downwards_trend: J K Cement was the top loser.

:newspaper: News

Larsen and Toubro Ltd rose 4% after Middle Eastern media reported that the company had received two orders from Saudi Aramco worth nearly $4 billion.

As part of a financial restructuring initiative that will see gas utility company GAIL ousted from the petrochemical firm, ONGC announced in an exchange filing that the company will infuse about Rs 15,000 crore in OPaL.

The USDINR fell to a new low of 83.18 paise on a closing basis as Asian currencies fell, fueled by expectations of strong demand for the dollar due to resilient US yields.


Nifty and Sensex both closed higher for the sixth consecutive session, with each gaining over 2.5% during this period. Dow and Nasdaq futures are trading slightly lower.

:oil_drum:Brent Crude: 90.61 0.77%
:heavy_dollar_sign:USD INR Spot: 83.1829 0.00%.
:scroll:India 10Y Bond yield: 7.207 0.47%

Nifty 50 heat map.

More stats at: technicals.zerodha.com

Amongst the F&O stocks

:chart_with_upwards_trend: Power Finance Corp was the top gainer.

:chart_with_downwards_trend: Zee Entertainment Enterprises was the top loser.

:newspaper: News

Reliance Industries, led by Mukesh Ambani, has partnered with Nvidia to develop a large language model tailored for generative AI applications in India. Nvidia will assist in building AI infrastructure, offering access to its GH200 Grace Hopper Superchip and DGX Cloud.

The Reserve Bank announced the phased discontinuation of Incremental Cash Reserve Ratio (I-CRR) on Friday, which was initially introduced to absorb excess liquidity after the withdrawal of Rs 2,000 currency notes, starting Saturday.

Mazagon Dock Shipbuilders’ shares hit an all-time high at ₹2,484.70, surging 19%, following the signing of a Master Ship Repair Agreement with the US government. This agreement permits the repair of US Navy ships at Mazagon Dock.

India witnessed a 50% increase in IT hardware imports in August from July, reaching 1.2 million units, as concerns mounted ahead of new licensing rules taking effect on November 1. The rise was driven by enterprise orders and original equipment manufacturers.

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