Weekly Trading Diary: 6th to 10 June 2022

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

A quick look at what the markets were up to in the week gone by;

Benchmark indices closed another week on the higher side, rising for the third straight week.

Coming to sectoral performance, Pharma and Bank were the only losing sectors for the week. Realty and IT were the top performers, surging over 4% each.

On the global front, major markets in the US and Europe closed the week ended 3rd June in red. While the major Asian markets surged higher.

Things to watch out for in the coming week;

All eyes in the coming week will be on the RBIs Monetary Policy Committee meet. The decision is expected on 8th June.

Besides RBI, European Central Bank too is set to meet next week, with decision expected on 9th June.

Key macroeconomic events around the world:

6th June 7th June 8th June 9th June 10th June
China Caixin Services PMI UK Composite PMI (MAY) India Interest Rate Decision Eurozone ECB Interest Rate Decision China PPI (MAY)
Services PMI (MAY) UK Construstion PMI (MAY) US Jobless Claims CPI Inflation (MAY)
Eurozone GDP Estimates (Q1) US CPI Inflation (MAY)
US Crude Oil Inventories

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

Benchmark indices recovered from early morning lows to close the day flat. Futures on Dow and Nasdaq are trading higher, indicating a positive start for US markets.

:oil_drum: Brent Crude: 120.33 -0.75%
:heavy_dollar_sign: USD INR Spot: 77.63 0.01%
:scroll: India 10Y Bond yield: 7.501 0.60%

Majority of sectoral indices ended the day in the red. The best performing sector was Nifty Metal, gaining 1.12%. Nifty Media was the worst performer, down 1.25%.

Amongst the F&O stocks

:chart_with_upwards_trend: Rain Industries was the top gainer.

:chart_with_downwards_trend: Indiabulls Housing Finance was the top loser.

:newspaper: In the news

India’s benchmark 10-year bond yield rose to its highest levels since March 2019 as investors prepared for around a 50-basis-point rate increase later this week while higher global crude oil prices also hurt sentiment.

Tata Motors on Monday said it has bagged an order for supply of 10,000 XPRES-T EV units from BluSmart Electric Mobility. The deployment of 10,000 units makes this the biggest ever EV fleet order in India, the auto major said in a statement.

India’s palm oil exports in May were the highest in seven months, up 15% from April, as the country overcame curbs on Indonesian exports by sourcing more of the commodity from Malaysia, Thailand and Papua New Guinea.

ACME Group, a renewable energy company, will invest $6.70 billion in Karnataka over the next five years to build a green hydrogen and ammonia plant. The investment comes as India aims to produce 5 million tonnes of green annually by 2030.

Passenger vehicle retail sales rose last month, but two-wheeler and commercial vehicle sales remained low compared to the pre-COVID month of May 2019. As per FADA, overall auto retails were 16,46,773 units in May, down from 18,22,900 units in May 2019.

:earth_americas: Around the World

British Prime Minister Boris Johnson will face a confidence vote by lawmakers in the governing Conservative Party later on Monday.

Thailand’s retail inflation at 7.1% in May to its highest in nearly 14 years, a level that may test the central bank’s resolve to stand pat on borrowing costs.

1 Like

Benchmark indices extended their losses for the third successive trading session, falling around 1%. US markets too look set for a weak opening.

:oil_drum: Brent Crude: 118.97 -0.82%
:heavy_dollar_sign: USD INR Spot: 77.1 0.10%
:scroll: India 10Y Bond yield: 7.518 0.24%

Except for the Nifty Energy and Auto indexes, all other indices ended the day in the red. Nifty Realty, Media, IT and FMCG were top draggers, falling over 1.5% each.

Amongst the F&O stocks

:chart_with_upwards_trend: ONGC was the top gainer.

:chart_with_downwards_trend: Zee Entertainment was the top loser.

:newspaper: In the news

HDFC Bank today announced a 0.35% hike in lending rate. The hike, which comes a day ahead of the RBI’s scheduled policy review, is the second such move from the lender in as many months, taking the cumulative hike to up to 0.60%.

Shares of PB Fintech, which operates online insurance broker Policybazaar and loan marketplace Paisabazaar, plunged 12% after Yashish Dahiya, chairman executive and CEO of the company revealed his plan to sell up to 3.77 million equity shares through open market.

Essar Oil and Gas Exploration and Production Ltd. said coal seam gas output from its Raniganj East block in West Bengal has crossed 0.8 million standard cubic meters per day and is on track to triple the production in 24-30 months.

:earth_americas: Around the World

South Africa’s economic growth quickened in the first quarter as the country emerged from a fourth wave of coronavirus infections. GDP expanded 1.9% in the three months through March, compared with revised growth of 1.4% in the previous quarter.

The Japanese Yen dropped to a twenty-year low against the dollar, weighed down by the widening gap between yields in Japan and the US, stoking speculation over potential intervention. The currency fell as much as 0.8% to 132.96 per dollar – the lowest since April 2002.

Nifty and Sensex extended losses for the fourth session running after RBI hiked the repo rate by 50 basis points. US futures indicate a muted start for US stocks.

:oil_drum: Brent Crude: 121.64 +0.89%
:heavy_dollar_sign: USD INR Spot: 77.671 -0.33%
:scroll: India 10Y Bond yield: 7.494 -0.32%

On the sectoral front, Nifty Realty index was the top performer, rising 1.89% followed by Nifty Media gaining 1.49%. Nifty FMCG was the top loser, falling more than 1%.

Amongst the F&O stocks

:chart_with_upwards_trend: Glenmark Pharmaceuticals was the top gainer.

:chart_with_downwards_trend: Gujarat Gas was the top loser.

:newspaper: In the news

RBIs Monetary Policy Committee unanimously decided to hike the repo rate by 50 bps to 4.9% as inflation is likely to be above 6% till Dec 2022 given global growth risks and geopolitical tensions.

The World Bank has cut its 2022-23 GDP growth forecast for India to 7.5% from earlier prediction of 8% due to inflationary pressures, supply-chain pressures, and geopolitical tensions. It also slashed global growth forecast for 2022 calendar year to 2.9% from 4.1%.

Yes Bank on June 8 announced that its Board of Directors, appointed under the YES Bank Reconstruction Scheme of March 2020, has recommended the formation of a new board, in line with the directions of the Scheme, to shareholders.

Eurozone output rose 0.6% from the previous three months in Q1, exceeding earlier estimate of a 0.3% advance released last month. But consumption fell 0.7% amid lingering lockdowns, even as employment increased 0.6%.

RBI on Wednesday allowed credit cards to be linked with the UPI, which will enable more people to make payments using the popular platform.

When markets keep on ignoring bad news (Crude at 123-124, USDINR at 77.8 , Rate hikes, high inflation) and keeps going up like it did today…It generally means that either the worst is in the price or some good news is around the corner.

Lets see how tomrw n next week pans out… As long as it is above 16380-420 and 16240 zones…its all good

Benchmark indices recovered from the day’s lows and gained nearly 0.8%, snapping a four-day losing streak. US futures indicate a good start for US markets.

:oil_drum: Brent Crude: 123.63 -0.07%
:heavy_dollar_sign: USD INR Spot: 77.765 0.05%
:scroll: India 10Y Bond yield: 7.497 0.04%

Except for Nifty PSU and Metal indexes, all other indices ended the day in the green. Nifty Pharma and Energy were the top performers, each gaining 1.2%, followed by Nifty IT, rising nearly 1%.

Amongst the F&O stocks

:chart_with_upwards_trend: Container Corporation of India was the top gainer.

:chart_with_downwards_trend: Strides Pharma Science was the top loser.

:newspaper: In the news

Debt mutual funds have been hit hard by the ongoing rate hike cycle. According to the recent AMFI data, debt mutual funds saw an outflow of Rs 32,722.25 cr in May, compared to an inflow of Rs 54,756.60 cr in April. Equity mutual fund saw a net inflow of Rs 18,529.43 cr.

Welspun Corp Ltd (WCL) has partnered with Tata Steel to develop the “framework for and subsequently manufacturing” pipes for transportation of pure hydrogen and natural gas-blended hydrogen.

In a first ever, Coal India Limited (CIL) on Wednesday floated an international competitive bidding e-tender, seeking bids for import of 2.416 million tonnes (MTs) of coal.

The revised microfinance guidelines, which put all micro lenders on the same platform, slowed loan disbursement in the first 2 months of implementation as loan rejection rate jumped over 50% from the normal 35% because lenders now have to follow processes more diligently.

:earth_americas: Around the World

Retail sales of domestic passenger cars totalled 1.354 million units, down 17% YOY and up 30% MOM. Total sales of passenger car manufacturers nationwide was 1.557 million units, down 3% YOY and up 64% MOM : China Passenger Car Association.

Freeport LNG, operator of one of the largest U.S. export plants producing liquefied natural gas (LNG), will shut for at least three weeks following an explosion at its Texas Gulf Coast facility, raising the risk of shortages especially in Europe.

Shanghai and Beijing went back on fresh COVID-19 alerts on Thursday after parts of China’s largest economic hub started imposing new lockdown restrictions while the most populous district in the Chinese capital shut entertainment venues.

Gap down opening below 16300…lets see whether it holds the 16240 zone…else we may head to 16100-060 zones…

Bulls should be comfortable only above 16400 zones… but markets are extremely choppy giving bullish closes n gapping down n vice versa.

Nifty Mid and Small cap are outperforming Nifty …Key difference to note when compared with previous weeks.

i would like to short only if nifty sustains below 16200 for 16050-16000 levels

For long 16400 is must or 165350 for 16500 levels…

Benchmark indices fell sharply following weak global cues as ECB interest rate hike guidance and upcoming US inflation data soured investor sentiment.

:oil_drum: Brent Crude: 123.95 0.90%
:heavy_dollar_sign: USD INR Spot: 77.8325 0.09%
:scroll: India 10Y Bond yield: 7.522 0.35%

All sectoral indices ended the day in red. Nifty IT index was the top dragger, down by 2.17%. Followed by Energy, Bank, and Metal, each slipping by over 1.5%.

Amongst the F&O stocks

:chart_with_upwards_trend: Deepak Nitrite was the top gainer.

:chart_with_downwards_trend: Firstsource Solutions was the top loser.

:newspaper: In the news

Reliance and Apollo Global Management has emerged as the frontrunner to acquire Boots pharmacies unit in UK, valuing the assets in the range of $7-8 billion.

Sovereign wealth fund Abu Dhabi Investment Authority is set to acquire a 20% stake in IIFL Home Finance for Rs. 2,200 crore, valuing the mortgage lender at Rs 11,000 crore.

Alembic Pharmaceuticals said it has received approval from the US health regulator to market Dasatinib tablets, used to treat certain types of cancers, in the American market.

The European Central Bank ended a long-running stimulus scheme on Thursday and signaled a series of rate hikes that may be scaled up from September if the inflation outlook fails to improve.

Russian central bank signaled it may not be done with monetary easing after lowering interest rates to their level before the invasion of Ukraine. On Friday it further reduced interest rates, from 11% to 9.5%.