Weekly Trading Diary: 5th to 9th December 2022

[Tradingqna]

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

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A quick look at how the markets performed in the week ended 2nd December;

Benchmark indices continued their upbeat momentum, closing the week at new all-time high. Nifty and Sensex both gained close to a per cent each in the week with Nifty closing at 18,696 and Sensex at 62,868.

On the sectoral front, all the indices closed in green;

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Things to watch out for in the coming week;

	5th December		6th December		7th December		8th December		9th December
India	S&P Services PMI (NOV)			India	RBI Interest Rate Decision	Japan	GDP Growth (CYQ3)	China	CPI Inflation (NOV)
Japan	Services PMI (NOV)			Eurozone	GDP Growth (CYQ3)	US	Jobless Claims		PPI Inflation (NOV)
China	Caixin Services PMI (NOV)			US	Crude Oil Inventories			US	PPI Inflation (NOV)
Eurozone	Services PMI (NOV)
	Markit Composite PMI (NOV)
UK	Composite PMI (NOV)
	Services PMI (NOV)
US	Services PMI (NOV)
	Markit Composite PMI (NOV)
	ISM Non-manufacturing PM (NOV)

What are you looking forward to in the week? Share below and join the discussion

[Tradingqna]

Benchmark indexes recovered from the day’s low to close flat, amid mixed global cues. Dow and Nasdaq futures are trading lower, indicating a negative opening for US markets.

Brent Crude: 87.43 1.78%
USD INR Spot: 81.79 0.58%
India 10Y Bond yield: 7.226 0.07%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

M&M Financial Services was the top gainer.

BHEL was the top loser.

News

India’s services activity reached a three-month high in November at 56.4 compared to 55.1 in November as services firms benefited from accommodative demand with the survey released by credit rating agency S&P Global survey showing an expansion in output and job creation.

M&M Financial Services saw a rise of more than 5% following a payout of over Rs 4,500 crore in November 2022, which represented a 75% YoY growth against the backdrop of a positive macro environment. Company’s YTD distribution grew by 99% YoY to Rs 31,050 crore.

India’s job market returned to pre-festive levels in November, rising by 27% MoM and 43% YoY on the back of post-festive recovery. Insurance sector witnessed growth of 42% followed by 34% and 31% in banking and real estate sectors respectively: Naukri Jobspeak Index.

SBI surpassed the milestone of Rs 5 trillion in personal banking advances on November 30, 2022, a year after touching Rs.4 trillion in last November indicating the bank’s progression at an accelerated pace: Dinesh Khara, Chairman, SBI.

AT&C losses of power distribution utilities declined to 17% in 2021-22 from 22% YoY enabling them to better maintain the system and buy power as per requirement and benefit the consumers: Power Ministry.

Lupin announced the launch of a generic version of Eidai Inc’s Banzel tablets, Rufinamide Tablets, an anticonvulsant medication that had an estimated annual sales of USD 138 million in the US as per IQVIA data.

Foxconn reported an 11.4% dip in yearly sales for November after some shipments were affected by a Covid outbreak in the Chinese city of Zhengzhou, where the company operates the world’s largest iPhone assembly complex.

[Tradingqna]

Benchmark indices finished negative, down around 0.3% ahead of the RBI Monetary Policy Meeting. US markets look set for a mixed opening.

Brent Crude: 81.58 -1.73%
USD INR Spot: 82.615 1.01%
India 10Y Bond yield: 7.249 0.32%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

TVS Motor was the top gainer.

LTIMindtree was the top loser.

News

UPI transactions saw a meteoric rise of 650% at the semi-urban and rural stores in India this year with growth of 25% and 14% in value and volume: Report by digital network PayNearby

The Global airline industry is expected to have a lesser loss of USD 6.9 billion in 2022, down to an early estimate of $9.7 billion, due to higher passenger yields and cost control by carriers amid rising fuel prices. IATA

India’s thermal power generation surged 16.28% YoY to 87,687 million units (MU) and The country’s overall power generation also increased by 14.63% to 1,18,029 MU from 1,02,968 MU in the same period last year: Ministry of Coal

The government’s fertilizer subsidy is expected to rise to Rs 2.3-2.5 lakh crore in this fiscal but the bill may fall by 25% in the 2023-24 financial year with moderation in global prices: according to industry body FAI.

Global renewable power capacity is expected to double over the next 5 years, due to energy security concerns after Russia’s invasion of Ukraine, with capacity expected to rise by 2,400 GW to 5,640 GW by 2027. The rise is 30% higher than expected the previous year: IEA

[Tradingqna]

Benchmark indices closed at the day’s low, down around 0.4%, after the RBI’s monetary policy committee raised the repo rate by 35 basis points. US futures are trading lower.

Brent Crude: 79.53 0.23%
USD INR Spot: 82.411-0.08%
India 10Y Bond yield: 7.272 0.32%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

Siemens was the top gainer.

Oberoi Realty was the top loser.

News

The RBI hiked the repo rate by 35 basis points to 6.25%. Governor Shaktikanta Das stated that the RBI Monetary Policy Committee (MPC) agreed to hike interest rates in order to reduce high inflation back to its target of 4%.

As part of the government’s share sale procedure, The Carlyle Group, Fairfax Financial Holdings, and DBS Bank can submit bids for at least 10% of IDBI Bank each. The Department of Investment and Public Asset Management has spoken with Carlyle, Fairfax & DBS Bank: Finance Ministry.

The World Bank upped its GDP growth forecast for India for the current fiscal year from 6.5% projected in October to 6.9% due to the economy’s relative resilience to external challenges and the strong performance in the September quarter.

India remains the world’s fastest-growing aviation market. Within the next five years, the country’s annual air passenger traffic will reach 400 million, and the government has plans to lease 11 more airports: Ministry of Civil Aviation

Google has been asked by the govt to stop displaying ads for foreign betting firms including Fairplay, PariMatch, Betway, and 1xBet in search results. Last week, a letter was sent to Google India asking to immediately stop running any direct or surrogate advertising on these betting sites.

[anon5804332]

Volatile day expected tomorrow with the Gujarat election results!

Stock that caught my eye today - RCF! Price is going off the charts!

Price of this fertilizer player is going off the charts! for NSE:RCF by AnalystPratik — TradingView India

Disclaimer: Not a recommendation. Sharing for own research and education purpose only.

[Tradingqna]

Benchmark indices managed to close volatile session in green amid mixed cues in global markets. US markets look set for a muted opening.

Brent Crude: 77.78 +0.79%
USD INR Spot: 82.392 +0.23%
India 10Y Bond yield: 7.289 +0.28%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

Bank of Baroda was the top gainer.

Indiabulls Housing Finance was the top loser.

News

The central government plans to allocate 30% more funds to infrastructure projects in the upcoming budget. The budget allocation is expected to reach Rs. 2.5 lakh crores in year starting March: Moneycontrol

USFDA has placed Sun Pharma’s Halol facility under imports alert, halting all future shipments from the plant to the US market.

Reliance Industries is in talks with Ashok Leyland to develop hydrogen-powered engines. Ashok Leyland retrofit an existing fleet of 45,000 trucks, which Reliance has contracted to ferry refined products and other marketing goods: ET

NTPC, India’s top power producer is planning to build nuclear fleet in bid to aid nations shift away from coal and crub emmisions.

As per Union Minister Nitin Gadkari, the Ministry of Road Transport and Highways will launch India’s first-ever surety bonds insurance product on December 19 to increase liquidity in the infrastructure industry.

The RBI has granted the go-ahead for companies with Indian residents to hedge their exposure to gold at the recognized exchanges in the IFSC at GIFT City, Gujarat.

[anon5804332]

Phew… The eventful week is over! RBI didn’t surprise much and BJP held its fort setting new records!

Banking stocks are on fire and look unstoppable. But after years of correction, it is prudent to either have a basket approach or pick only the best one!

Stock which caught my attention today:
NSE:GRAVITA

Background:

• GRAVITA India Limited is an India-based company that is engaged in lead processing, aluminum processing, trading lead products and aluminum scrap, and dealing in turn-key lead recycling projects.
• It also has forayed into plastic recycling by commissioning dedicated facilities in Senegal, Mozambique, Ghana and India.

Fundamentals:
Over the last * five years, sales growth has averaged 29.5%, vs an industry avg of 20.15%

• Over the last five years, earnings growth has averaged 61.58%, vs the industry avg of 41.9%
• Over the last five years, the net profit margin has been 3.6%, vs the industry avg of 3.37%

Technicals:
Stock is nea* ring all time highs

• Stock has given base breakout with high volumes
• Stock is trading above 10/20/50/100/200 day moving averages

Source: tickertape.in
Disclaimer: only for research and education purposes. not a recommendation.

[Tradingqna]

Benchmark indices slid from the day’s high to settle around 0.6% lower following weak global cues. US markets look set for a good opening.

Brent Crude: 76.43 0.37%
USD INR Spot: 82.328 0.06%
India 10Y Bond yield: 7.298 +0.14%

Nifty 50 market breadth for the day;

Sectoral performance.

More stats at: stocks.zerodha.com

Amongst the F&O stocks

Cummins India was the top gainer.

HCL Technologies was the top loser.

News

India’s thermal coal imports fell to their lowest level in 10 months in November, with 10.83 million tonnes imported, compared to 12.03 million tonnes in October and 9.45 million tonnes in November 2021: Coalmint Data.

The upcoming railway budget may propose building a record 100,000km of new train lines over the next 25 years in order to modernize the network and improve train speeds. The railway budget will be submitted along with the union budget on February 1st.

Air India’s Boeing 777 and 787 cabins will be refurbished for more than $400 million, and the airline will also launch a premium economy service on medium and long-haul flights.

According to a Reuters poll of economists, India’s consumer price inflation likely declined to a nine-month low of 6.40% in November, primarily as a result of a moderation in food prices.

Dabur India, a major producer of packaged consumer goods, announces the launch of sanitary napkins as part of its entry into the personal care industry. With its brand “Fem,” it has decided to grow the sanitary napkin segment.

Snapdeal, an Indian e-commerce company funded by SoftBank, has chosen to cancel its $152 million IPO, according to Reuters.

[anon5804332]

Bearish engulfing with open = high on the daily chart for Nifty!

Although buying came in at the previous swing high levels, it will be interesting to see if the market slips into the previous swing high-low band!

Stock which caught my attention on Friday:
NSE:MOLDTECH

Background:
Mold-Tek Technologies specializes in providing Civil and Mechanical Engineering Solutions.

Key ratios:
PE cheaper than industry
Dividend higher than industry

Key fundamentals:
Sales - In the past five years, sales growth has averaged 8.98%, in contrast to the sector average of 5.51%.
Margins - Over the last 5 years, net profit margin has been 11.13%, vs industry avg of 0.73%
Earnings - Over the last 5 years, net earnings have averaged 24.3%, vs. sector avg of -183.77%

Key technicals:
Volumes have been on increasing trend in past week
Stock is near all time high on monthly, weekly and daily charts
although there is some selling pressure seen at ATH levels, the price is making higher lows and higher closes

Other:
Company is almost debt free.
Company is expected to give good quarter
Company has been maintaining a healthy dividend payout of 45.9%

Sources: tijorifinance, screener, tickertape, tradingview
Disclaimer: not a recommendation, only for educational purposes