Tremors witnessed at Dalal Street which simply caused massive destruction to Nifty bulls’ confidence.

The Week That Was @ 8:00 AM – Saturday, September 7th 2024*

September 2nd to September 6th 2024.

Tremors witnessed at Dalal Street which simply caused massive destruction to Nifty bulls’ confidence.

Profit booking blamed; Nifty ends well below the 25000 mark.

 

Nifty (-1.52%, 24852)
Sensex (-1.43%, 81184)

It’s strange and unbelievable, the catalysts and sentiments at stock markets changes so quickly that investors do not even know how it happened so suddenly!

Yes, the trading theme has changed quickly from the optimism about cooling US inflation towards fears over a slowdown in the US economy…

Blame it on the latest update on US manufacturing which has brought fear about a recession back to the surface.

Meanwhile, an unpleasant and unwelcome reading for investors from Friday’s released US August Jobs Report is that it Points to a Smaller Fed Rate.

# Bottom-line: Before the Fed outcome on September 18th; bullish traders will have to brace with two inflation reports:

The two inflation reports:

1) The Consumer Price Index (CPI – retail inflation) report on September 11th

2) And on September 12th traders will have to brace for the Producer Price Index (PPI – wholesale inflation) report.

Weekly Recap:
Instruments LTP Weekly % Change
Nifty 24852 (-1.52%)
Sensex 81184 (-1.43%)
Bank Nifty 50577 (-1.51%)
Nifty Midcap 16414 (-1.23%)
India VIX 15.22 +13.63%

Dow Jones 40345 (-2.93%)
Nasdaq 18421 (-5.89%)
Bovespa 134572 (-1.05%)

Crude Oil 67.64 (-8.01%)
Gold 2491 -0.45%
Silver 27.82 -3.59%
USD/INR 83.98 +0.14%

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

Nifty fell sharply after scaling new record historic high at 25333.65; Snaps its 3-week winning streak. (Technically, bearish engulfing pattern appears on weekly charts)

Bank Nifty too tumbled 1.51% on weekly basis snapping its 3-week winning streak. (Bank Nifty’s new all-time-high continues to be at 53357.70 mark).

Nifty Private Bank index dropped 1.40% lower while Nifty PSU Bank index plunged 4.73% lower on weekly basis.

In broader markets, the Nifty Mid-cap 100 index slipped 1.23% lower while the Nifty Small-cap index inched 0.16% lower.

Bearish Sectors:
Nifty PSE Index (-3.81%)
Nifty Oil & Gas Index (-3.21%)
Nifty Metal (-2.60%)
Nifty Infra Index (-2.57%)
Nifty Auto Index (-2.47%)
Nifty Media (-2.12%)
Nifty Reality Index (-2.02%)
Nifty IT (-1.31%)
Nifty Pharma (-0.75%)

Bullish Sectors:
Nifty FMCG Index (+0.18%)

STOCK SPECFIC NEWS:

1) Reliance Industries slipped 2.97% despite approving bonus share issue in 1:1 ratio, the first bonus issue since 2017, when its stock price was roughly Rs 700. (Source Business Standard).

2) The debt-ridden Vodafone Idea dropped 14.64%, Indus Towers fell 7.72% as Goldman Sachs flagged growth concerns.

3) Godfrey Phillips jumps 11% on reports that the firm is to consider bonus issue on September 20 in the ratio of 2:1.

4) Shares of Avenue Supermarts (DMart) hit a two-year high of Rs 5,303, gaining 7.63% on hopes of improvement in discretionary demand and margins.

5) AU Small Finance Bank shares rose 2.08% as the bank submitted an application to the RBI to seek approval for the voluntary transition from a Small Finance Bank to a Universal Bank.

6) Bajaj Finance and Bajaj Finserv traded with positive bias as Bajaj Housing Finance sets mega-IPO date on 9 September and closes on September 11th.

7) Dr Reddy’s shares drop hard, down 5.18% after Chinese authority suspends import, sale, use of its Atomoxetine Hydrochloride capsule.

8) Sonata Software jumped 7.66% after the company announced that it has received a large multi-year, multi-million-dollar IT outsourcing contract from a US-based healthcare and wellness company. (Source: Business Standard)

# In the week gone by, notable gainers amongst Nifty 50 were:
HEROMOTO CORP +5.29%
ASIAN PAINTS +4.70%
BAJAJ FINSERV +4.16%
TITAN +3.66%
SBI LIFE +2.49%

# And the losers were:
COAL INDIA (-6.93%)
ONGC (-6.64%)
TATA MOTORS (-5.58%)
DR REDDYS LAB (-5.18%)
NTPC (-5.14%)

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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.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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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