Weekly Trading Diary: 7th to 11th February 2022

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

A quick look back at what the markets had been up to in the week gone by;

Sensex and Nifty snapped a two-week losing streak to finish the week gone by about 2.5% up, with Sensex rallying 1,444 points and Nifty 414.35.

All major sectors closed the week on a positive note with Bank, IT, FMCG, Pharma, and Metal indices surging between 3 to 6.6%.

On the global front, apart from European markets, all the major indices around the world posted healthy gains.

Things to watch out for in the week:

IPOs & Listings

IPO of Vedant Fashions, which opened for subscription on Friday, will be open for subscription for two more days, 7th and 8th February. You can check our more details on the IPO here: Everything You Need to Know About the Vedant Fashions IPO

While, shares of Adani Wilmar, which recently concluded its IPO will list on the exchanges on 8th February.

Corporate earnings to watch for:

7th Feb 8th Feb 9th Feb 10th Feb 11th Feb 12th Feb
Castrol India Bata India ACC Limited ABB India Apollo Hospitals Atul Auto
GlaxoSmithKline Pharma Bharti Airtel Aurobindo Pharma Amara Raja Batteries Ashok Leyland Avanti Feeds
National Aluminium Company BSE Limited Berger Paints Alembic Pharma Glenmark Pharma Max Healthcare
PB Fintech Escorts Bosch Bharat Forge IDFC Muthoot Finance
TVS Motor Company Godrej Consumer Products GMR Infra Hero MotoCorp India Cements
Union Bank of India Indraprastha Gas Limited Indiabulls Housing Finance Hindalco Industries PFC
IRCTC Nykaa Mahindra & Mahindra
Mahanagar Gas Limited SAIL MRF
Page Industries
Piramal Enterprises
Tata Chemicals

Key economic events for the week;

7th Feb 8th Feb 9th Feb 10th Feb 11th Feb
China Composite PMI US Trade Balance (DEC) India RBI Policy Meeting US CPI Inflation (JAN) US Fed Monetory Policy Report
Services PMI Japan Household Spending (DEC) Jobless Claims Britain GDP (Q4)
Manufacturing Production (DEC)

Good morning Folks,

With volatility exploding in big stocks in the US , energy prices surge and Bond yield spike both in US and Indian bond mrkts, Markets will most likely start open near 17400 (As per SGX)

Im still not personally comfortable taking a trade esp long side in index at this zone.

With our own event (RBI Monetary Policy) this week, we can most likely see a surge in indices esp financials.

My strategy would be simple : Avoid trading index till the risk reward gets heavily favourable on one side and till then focus on stock specific action.

Currency derivatives, SGBs. T-Bills, and G-Secs won’t be trading today on account of a public holiday declared by the Government of Maharashtra.

Nifty Future is in Discount. Are we nearing the bottom ? Price action near 17200-260 zones will determine the journey going forward. I think the fall is overextended at these zones. will look to buy if i get the zone today.

Nifty and Sensex slumped by around 1.75%, extending losses for the third straight session. US futures are also trading lower, indicating a weak opening for US markets.

Nifty PSU Bank and Energy were the only sectors that managed to post gains for the day. Nifty Bank and FMCG were the top losers, sliding by around 2%.

Amongst the F&O stocks

:chart_with_upwards_trend: GNFC was the top gainer, surging over 13% after posting robust Q3 performance.
:chart_with_downwards_trend: Torrent Power was the top loser, tanking by around 10%.

:page_with_curl: Earnings Update:

Paytm: Net Loss: Rs 778 cr :arrow_down: 45% YoY; Revenue: Rs. 1,456 cr :arrow_up: 89% YoY.

SBI: Net Profit: Rs 8431.8 cr :arrow_up: 62.3% YoY; Net Interest Income: Rs. 30687.2 cr :arrow_up:6.5% YoY.

TVS Motor: Net Profit: Rs 288.8 cr :arrow_up: 9% YoY; Revenue: Rs. 5,706.4 cr :arrow_up: 5.8% YoY.

CDSL: Net Profit: Rs 83.63 cr :arrow_up: 55% YoY; Revenue: Rs. 162.93 cr :arrow_up: 58% YoY.

:newspaper: In the news

RBI is expected to hold its repo rate steady on Thursday but several economists are expecting an increase in the reverse repo rate as part of a process to reduce surplus liquidity poured into markets earlier in the pandemic.

L&T and Microsoft team up to develop a regulated sector-focused cloud offering to empower customers with cloud computing and infrastructure services.

Automobile companies’ retail sales fell by 10.70 percent in January 2022 compared to the corresponding period of last year, according to data released FADA.

General insurance business has gone back to its pre-COVID returns. The industry grew by 15% on a YoY basis in January. So far in FY22, it has grown by 12%. Industry premium is up by 2.6% whereas private companies’ premium is up 9% YoY.

:earth_asia: Around the world

Activity in China’s services sector in January expanded at the slowest pace in five months, as a surge in local COVID-19 cases and containment measures hit new business and consumer sentiment while employment fell. The PMI Index dropped to 51.4 in January.

Bank of England calls for wage restraint to keep grip on inflation as Governer Bailey fears out-of-control inflation without pay constraint. Story here.

Good Morning Folks,

It was one heck of a trading day yesterday. Nifty has reached our buy range but still there is no strength visible. My observation over the years tell me that a trending day is usually followed by a consolidation choppy day.

With that setup in mind, I’ll look for any quick scalping trades till RBI Events and take a positional view only after the event.

Hi Traders , @ShubhS9 is your saved charts/views are there on Kite platform or washed out? my saved charts are washed out!! :grimacing:

Drawings are saved in the local memory of your device called cache. Any changes in the cache will result in your drawings getting deleted. Explained here.

Benchmark indices recovered from day’s lows to close the volatile session with nominal gains, ending 3 day losing streak. Dow and Nasdaq futures indicate a mixed start for US markets.

:oil_drum:Brent Crude 90.74 -2.10%
:heavy_dollar_sign:USD INR Spot 74.7475 +0.07%
:scroll:India 10Y Bond yield 6.812 -0.97%

On the sectoral front, Nifty PSU Bank and Metal indexes were the top gainers, both surging around 0.8%. Nifty Energy was the top loser, down by 1.3%, followed by Nifty Media, down 1.03%.

Amongst the F&O stocks

:chart_with_upwards_trend: GNFC was the top gainer.
:chart_with_downwards_trend: Tata Power was the top loser.

:page_with_curl: Earnings Update:

Bharti Airtel: Net Profit: Rs 829.6 cr :arrow_down: 2.8% YoY; Revenue: Rs. 29867 cr :arrow_up: 12.6% YoY.

Escorts: Net Profit: Rs 201.5 cr :arrow_down: 28.2% YoY; Revenue: Rs. 1957.5 cr :arrow_down: 3% YoY.

IRCTC: Net Profit: Rs 208 cr :arrow_up: 167% YoY; Revenue: Rs. 540cr :arrow_up: 141% YoY.

BSE: Net Profit: Rs 61.29 cr :arrow_up: 89% YoY; Revenue: Rs. 192.67 cr :arrow_up:60% YoY.

:newspaper: In the news

IL&FS to distribute Rs 20,000 cr proceeds to creditors by March end as the group is expected to have a considerable amount of distributable assets, both in cash and InvITs, by March.

RBI’s rate-setting panel began its three-day deliberations on Tuesday to decide the next monetary policy in the backdrop of Budget 2022-23, inflationary concerns and evolving geo-political situation.

Vedant Fashions IPO was subscribed 2.57x on the last day. QIB portion fetched 7.49x subscription, while NII 1.07x and Retail portion 0,39x.

Shares of Adani Wilmar surged over 16% on debut after listing at a discount of 4% to the issue price.

:earth_asia: Around the world

European power prices jump after EDF cut its nuclear output target for a second time in a month, the latest sign that this winter’s energy crisis is far from over.

SoftBank shelved the sale of Arm Ltd. to U.S. chipmaker Nvidia due to regulatory hurdles, marking the collapse of what would have been a record deal for the industry valued at as much as $80bn.

Thank you , i already know what you are trying to say , but my catch was different , today none of the saved views are available on kite platform , it was only the plain price candle was being displayed but by the end of day trading session all the saved views are restored.

Nifty and Sensex both surged by more than 1.1% ahead of the RBI’s monetary policy announcement tomorrow. US markets look set for a positive opening as futures trade higher.

:oil_drum: Brent Crude: 90.28 -0.55%
:heavy_dollar_sign: USD INR Spot: 74.8075 0.08%
:scroll: India 10Y Bond yield: 6.809 -0.01%

All sectoral indices, except for the Nifty PSU Bank finished the day in the green. Nifty Auto was the best performer, gaining 2.19%, followed by Nifty Metal and Media sectors each gaining 1.86%.

Amongst the F&O stocks

:chart_with_upwards_trend: Abbott India Ltd was the top gainer.
:chart_with_downwards_trend: Mahanagar Gas was the top loser.

:page_with_curl: Earnings Update:

Nykaa: Net Profit: Rs. 28 cr :arrow_down: 59% YoY; Revenue: Rs. 1,098 cr :arrow_up: 36% YoY.

Tata Power: Net Profit: Rs. 551.8 cr :arrow_up: 73.5% YoY; Revenue: Rs. 10913.4 cr :arrow_up: 43.6% YoY.

Power Grid: Net Profit: Rs. 3,293 cr :arrow_down: 2.2% YoY; Revenue: Rs. 10,447 cr :arrow_up: 3% YoY.

Bata India: Net Profit: Rs. 72.32 cr :arrow_up: 174% YoY; Revenue: Rs. 841.3 cr :arrow_up: 36% YoY.

Bosch: Net Profit: Rs. 234.79 cr :arrow_up: 27.43% YoY; Revenue: Rs. 3,109.08 cr :arrow_up: 2.6% YoY.

:newspaper: In the news

Vedanta scrapped its restructuring plans which involved hiving off and listing three of its businesses after its board found the present structure to be optimal.

Board of Bharti Airtel approved raising up to Rs. 7,500 cr in debt through the issuance of unlisted non-convertible debt securities including debentures and bonds.

L&T Construction gets contracts in the range of Rs. 1,000-2,500 cr from Bangladesh Hi-Tech Park Authority to construct Hi-Tech IT parks at 8 locations.

Aluminum stocks surge as metal’s price climbs to 13-year high on concerns that the supply-demand gap could lead to a tight market for the commodity for the rest of 2022.

:earth_asia: Around the world

The European Central Bank could raise interest rates this year as high inflation is proving more persistent than once thought, new Bundesbank chief says.

Thailand’s central bank holds off raising its benchmark interest rate to support a nascent economic recovery threatened by the omicron variant.

Household debt increased by $1 trillion in 2021, the biggest annual increase since 2007, according to data from the Federal Reserve Bank of New York.

Good Morning folks,

With RBI event today, obviously volatility is expected. But looking at broader scheme of things, global markets are back to green with dow hardly 1000 points (3% away from ATHs) :hushed: . Its surprising that with all the carnage last month, dow and S&P are well within reach to touch another ATH soon. Nasdaq ofcourse is 10% away.

I’m frankly not too excited with the indices at the current level as risk reward isnt favourable for either longs or short. 17800 seems to be the major resistance point whereas 17000-900 zone seems to be offering support.

I’ll look to short at 17650-700 levels and go long at lower levels close to 17200-100

Nifty and Sensex surged by around 0.8% after RBI decided to keep interest rates unchanged. Dow and Nasdaq futures indicate a mixed start for US markets.

:oil_drum: Brent Crude: 92.35 +0.87%
:heavy_dollar_sign: USD INR Spot:74.9375 +0.17%
:scroll: India 10Y Bond yield: 6.731 -0.99%

Majority of sectoral indices closed the day in positive territory. Nifty Media gained the most, rising 1.66%. The only two sectors in the red were Nifty Auto and PSU Bank, both of which were down by merely 0.05%.

Amongst the F&O stocks

:chart_with_upwards_trend: Jindal Steel & Power was the top gainer.
:chart_with_downwards_trend: IPCA Laboratories was the top loser.

:page_with_curl: Earnings Update:

ACC: Net Profit: Rs. 280.85 cr :arrow_down: 40.55% YoY; Revenue: Rs. 4,225.76 cr :arrow_up: 1.95% YoY.

Aurobindo Pharma: Net Profit: Rs. 604.29 cr :arrow_down: 22.3% YoY; Revenue: Rs. 6,002.2 cr :arrow_down: 1% YoY.

Berger Paints: Net Profit: Rs. 252.97 cr :arrow_down: 8% YoY; Revenue: Rs. 2,550.77 cr :arrow_up: 20.42% YoY.

SAIL: Net Profit: Rs. 1,443 cr :arrow_up: 12% YoY; Revenue: Rs. 25,246 cr :arrow_up: 27% YoY.

M&M: Net Profit: Rs. 1798 cr :arrow_up: 27.5% YoY; Revenue: Rs. 15,239 cr :arrow_down: 0.1% YoY.

MRF: Net Profit: Rs. 149.4cr :arrow_down: 71.3% YoY; Revenue: Rs. 4920.1 cr :arrow_up: 6% YoY.

Hindalco: Net Profit: Rs. 3,675 cr :arrow_up: 96% YoY; Revenue: Rs. 50,272 cr :arrow_up: 44% YoY.

:newspaper: In the news

RBI’s MPC voted unanimously to keep both repo rates and reverse repo rates unchanged and decided to continue with its accommodative stance.

RBI projects the GDP to grow at 7.8% for fiscal 2022-23 while CPI inflation is projected at 4.5% for upcoming fiscal.

Petronet LNG will invest Rs. 40,000 cr over next 4-5 years, including in overseas supply sources. The company plans to make foray into the petrochemical business, as well as set up a floating LNG import facility in Odisha.

Persistent Systems to acquire assets of Data Glove for $90.5m. Through the deal, Persistent will acquire assets of Data Glove, USA, with assets of its Indian subsidiary and affiliate entities based out of Australia, UK, Canada, and Singapore.

:earth_asia: Around the world

ArcelorMittal reported its biggest annual profit in more than a decade after a historic rally in steel prices revived the fortunes of a beleaguered industry.

Credit Suisse posts its biggest quarterly loss in about four years after large restructuring and litigation charges added to its worst period since the financial crisis.

Demand in the U.K. housing market jumped last month to the highest since May but real estate agents are warning interest-rate hikes may put off buyers.

1 Like

Good Morning folks,

I guess there will be a gap down today but I’m frankly not expecting major fall after opening (+/- 0.5%)

What’s intriguing is… We have reacted much more negatively to US news flow than our own news (RBI)

And the US CPI news was not unexpected.

Overall expecting volatile moves with 17420-380 zones as reference for trend change today.

Have a nice trading day :slight_smile:

Update (1.55 p.m) : Market is trading in the range of 17390-420 as expected.

Trending move only above /below these levels

Benchmark indices slumped 1.31% on fears that the Federal Reserve will soon begin raising interest rates. Dow and Nasdaq futures indicate weak opening for US markets.

:oil_drum: Brent Crude: 92.22 +0.89%
:heavy_dollar_sign: USD INR Spot:75.38 +0.59%
:scroll: India 10Y Bond yield: 6.701 -0.36%

All sectoral indices ended the day in the red. Nifty IT and PSU Bank were the biggest underperformers, dropping more than 2% each.

Amongst the F&O stocks

:chart_with_upwards_trend: Aurobindo Pharma was the top gainer.
:chart_with_downwards_trend: Info Edge was the top loser.

:page_with_curl: Earnings Update:

ABB India: Net Profit: Rs. 194 cr :arrow_up: 211% YoY; Revenue: Rs. 2,101 cr :arrow_up: 24% YoY.

Amara Raja Batteries: Net Profit: Rs. 145.30 cr :arrow_down: 25% YoY; Revenue: Rs. 2,365.87 cr :arrow_up: 20.7% YoY.

Apollo Hospitals: Net Profit: Rs. 243.2 cr :arrow_up: 81.2% YoY; Revenue: Rs. 3,639 cr :arrow_up: 31.8% YoY.

Divis Lab: Net Profit: Rs. 902.24 cr :arrow_up:. 91.71% YoY; Revenue: Rs. 2,493.24 cr :arrow_up: 46.53% YoY.

Godrej Industries: Net Profit: Rs. 144.4 cr :arrow_up: 9.4% YoY; Revenue: Rs. 3,514.6 cr :arrow_up: 49.1% YoY.

Hero MotoCorp: Net Profit: Rs. 686 cr :arrow_down: 36.7% YoY; Revenue: Rs. 7,883 cr :arrow_down: 19.4% YoY.

Mahindra & Mahindra : Net Profit: Rs. 1,353.07 cr :arrow_up: 155% YoY; Revenue: Rs. 15,238.82 cr :arrow_up: 8.41% YoY.

Page Industries: Net Profit: Rs. 174 cr :arrow_up: 13.6% YoY; Revenue: Rs. 1,190 cr :arrow_up: 28.4% YoY.

Piramal Enterprises: Net Profit: Rs. 888 cr :arrow_up: 11% YoY; Revenue: Rs. 3,816 cr :arrow_up: 20.4% YoY.

Tata Chemicals: Net Profit: Rs. 340 cr :arrow_up: 69% YoY; Revenue: Rs. 3,141.58 cr :arrow_up: 20.54% YoY.

Zomato: Net Loss: Rs. 63 cr :arrow_up: 81% YoY; Revenue: Rs. 1,112 cr :arrow_up: 86% YoY.

:newspaper: In the news

India’s industrial growth, as per the IIP, slumped to 0.4% in December 2021 from 1.3% the previous month as per data released by the National Statistical Office showed. At 0.4 percent, IIP growth in the last month of 2021 is the slowest in 10 months.

Tata Sons the holding company of Tata Group renewed the term of N Chandrasekaran as executive chairman for the next 5 years.

Wholesale dispatches of automobiles declined nearly 19% YoY in January as factors such as the third wave of the pandemic, semiconductor shortages, and lower rural demand kept passenger vehicle and two-wheeler sales subdued: SIAM

The Centre has approved 20 companies under the PLI scheme for the automobile industry. The 20 selected companies have proposed to make an investment of ₹45,000 cr over five years says Heavy Industries Secretary

Linde India signs a 15-year long-term agmt with ESL Steel, for the supply of 800 tonnes per day of Oxygen and 900 tonnes per day of Nitrogen to them at their steelworks at Bokaro.

:earth_asia: Around the world

U.S. inflation surged 7.5% last month on a YoY basis, topping economists’ estimates of 7.3% and marking the biggest annual increase in inflation in 40 years, further adding to pressure on the Fed to raise rates more aggressively.

Credit Suisse downgraded global equities to “benchmark” rating from “overweight”, citing the need for the U.S. Fed to raise interest rates above market expectations amid higher wage growth in the United States. Story here.