The Week That Was @ 7:30 AM – Saturday, August 10th 2024

August 5th to August 9th 2024

Amidst turbulence and rocky environment, Nifty bulls manage and regain their positive footing in Friday’s trade.

That said, the benchmark still remains way behind its all-time highs at 25078.30 and most importantly, ended lower for second straight week.

• Nifty (-1.42%, 24368)
• Sensex (-1.58%, 79706)

# Well, it was a rollercoaster week at Dalal Street that saw Nifty tumble sharply below 24000 mark before clawing back much of its losses.

# Nifty’s Friday’s impressive gains was courtesy of bargain hunters + value buying as boosting sentiments were catalysts like:

1. Wall Street jumping out of the gate.
2. US Recession fears may have been overstated. (Since the Covid-pandemic recovery began, the US economy has repeatedly defied predictions of a downturn. In fact, now signs of strength visible with shakier readings).
3. Unwinding of the Japanese Yen (JPY) eased.
4. De-escalation of geopolitical tensions as Iran could refrain from attacking Israel in exchange for a ceasefire in Gaza. 

# Bottom-line: Looks like, the worst and the panic could be behind us, but that said, Dalal Street is extremely sensitive and vulnerable to any news flow on the inflation and recession front from the US.

# Long story short: We are not completely out of the woods

# Red Flags to Consider…

The RBI’s six-member MPC decided to keep the repo rate unchanged at 6.5% and most importantly, cited food inflation risks, and red-flagged ‘certain’ lenders not adhering to top-up loan norms and credit card spend growth staying high despite an increase in risk weightings.

# Weekly Recap:

# Here are how indices performed in the week gone by:

• Nifty ended 1.42% lower and most importantly, for second straight day. Nifty’s new all-time-high continues to be at 25078.30 mark.
• Bank Nifty too traded depressed and with negative bias, ending 1.69% lower at 50485 mark. (Bank Nifty’s new all-time-high continues to be at 53357.70 mark).
• Nifty Private Bank index slipped 1.82% lower while Nifty PSU Bank index ended 2.82% lower on weekly basis.
• In broader markets, the Nifty Mid-cap 100 index inched 0.57% lower while the Nifty Small-cap index dropped 2.08%.

Bullish Sectors:

• Nifty Pharma (+1.40%)
• Nifty FMCG Index (+0.67%)
• Nifty Media (+0.06%)

Bearish Sectors:

• Nifty Metal (-2.97%)
• Nifty Infra Index (-2.27%)
• Nifty PSE Index (-1.94%)
• Nifty IT (-1.73%)
• Nifty Reality Index (-1.44%)
• Nifty Auto Index (-1.43%)
• Nifty Oil & Gas Index (-1.25%)

# In the week gone by, notable gainers amongst Nifty 50 were:

• CIPLA +3.01%
• EICHER MOTORS +2.20%
• HUL +2.03%
• BAJAJ AUTO +1.56%
• ITC 1.39%

# And the losers were:

• GRASIM (-4.95%)
• TATA STEEL (-4.05%)
• BPCL (-3.95%)
• ULTRATECH CEMENT (-3.95%)
• MARUTI (-3.95%)

STOCK SPECFIC NEWS:

• Ola Electric shares make a stunning stock market debut, jumping 20% and locked in upper circuit at Rs. 91.

• TRENT jumped 13%, scaling new all-time-high at Rs. 6374 after reporting 133% YoY jump in its standalone PBT at Rs 450 crore in June 2024 quarter (Q1FY25).

• TVS Motors traded firm (+0.47%, 2581). Robust Q1 with a 23% increase in net profit. Key beneficiary of revival of 2-wheeler demand.

• Lupin (+7.75%, 2114) hits its 52-week high at Rs 2125 per share on reporting a whopping 77.2% Y-o-Y increase in PAT for Q1FY25, reaching Rs 801 crore. Lupin’s revenue from operations also grew by 16.2%.

• SAIL dropped 12% after its Q1 Net profit tumbled 62% to ₹82 crore, missed street estimates by a mile.

• Amongst the biggest losers in the PSU pack were: RVNL (-12%), Ircon (-7.5%), CONCOR (-4.79%), IRCTC (-4%) Mazagon Dock (-3.5%)

DISCLAIMER

SEBI study dated January 25, 2023 on ‘Analysis of Profit & Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment’ wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

*RISK DISCLOSURES ON DERIVATIVES:*

# 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

# On an average, loss makers registered net trading loss close to 50,000.

# Over and above the net trading losses incurred, loss makers expended an additional 28%of net trading losses as transaction costs.

# Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

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This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments.

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