The Week That Was @ 7:30 AM – Saturday, August 3rd 2024

July 29th July to August 2nd 2024.

Nifty snaps its eight-week winning stretch and most importantly, ends on a dreadful note.

The long and short of the week’s trading was that the Nifty did surge past its attention-grabbing 25000 record high — but the street seemed concerned amidst overbought technical conditions.

Nifty (-0.47%, 24718)
Sensex (-0.43%, 80982)

Well, Nifty 25000 milestone was actually inspired by retail participation, the Aam Admi.

Boosting investors’ sentiments were the Federal Reserve signaling that the ‘First Cut Is Closer’

Having said that Nifty ended the week gone by on a panic note on backdrop of negative catalysts like:

1) US recession fears re-emerged on weak US manufacturing data.

2) US July jobs report triggered more fears about an economic downturn. (US Nonfarm Payrolls rose by 114,000 in July vs. 175,000 forecast. The Unemployment Rate climbed to 4.3% from 4.1% in June).

3) Geopolitical Tensions.

4) No major positive surprises from Corporate India Q1 June earnings.

5) Infosys shares fall 3% amid GST notice. (Karnataka State authorities had however retracted a GST notice demanding Rs 32,403 crore in GST payments).

6) Overbought technical conditions.

Weekly Recap:

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

Nifty ended 0.47% lower and most importantly, snapped its 8th straight weekly gain. Nifty’s new all-time-high now at 25078.30 mark.

Bank Nifty was seen consolidating, ending 0.11% higher at 51350 mark. (Bank Nifty’s new all-time-high continues to be at 53357.70 mark).

Nifty Private Bank index inched up 0.37% higher while Nifty PSU Bank index ended 1.01% lower on weekly basis.

In broader markets, the Nifty Mid-cap 100 index inched 0.17% lower while the Nifty Small-cap index gained 0.28%.

Bullish Sectors:

Nifty Pharma (+1.39%)

Nifty Media (+1.19%)

Nifty PSE Index (+1.11%)

Nifty Oil & Gas Index (+0.68%)

Nifty Infra Index (+0.07%)

Bearish Sectors:

Nifty Reality Index (-3.76%)

Nifty IT (-3.04%)

Nifty Auto Index (-2.04%)

Nifty FMCG Index (-1.57%)

Nifty Metal (-1.16%)

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

NTPC +5.90%

BPCL +5.57%

ASIAN PAINTS +5.31%

DIVIS LAB +4.19%

POWERGRID 4.08%

# And the losers were:

EICHER MOTORS 6.70%

LTI MINDTREE 4.81%

GRASIM -4.8%

M&M 4.78%

WIPRO 4.32%

STOCK SPECFIC NEWS:

1. Zomato continued its bull run, jumping 17% to end at Rs. 238 after its Q1 Net profit soared to Rs 253 crore, revenue jumped 71%.

• Tata Motors shares skidded after (Q1FY25) came in-line with market expectations.  Tata Motors net profit rose 74% year-on-year (Y-o-Y) to Rs 5,566 crore in the June quarter of financial year 2025 (Q1FY25), from Rs 3,203 crore in the June quarter of financial year 2024 (Q1FY24).

• Britannia Industries Q1 FY25 results: Net profit rises 10.5% to Rs 506 cr. Britannia would continue to make positive strides in rural areas rural market share grew at a faster clip than urban.

• Adani Enterprises (+2.61%, 3161) zoomed higher after Q1 net profit surged 116% to Rs 1,455 cr.

• Maruti zooms higher to uncharted territory, scaling a new record high at 13680 mark after its Q1 FY25 net profit jumped 47% to Rs 3,650 crore, mainly as softer raw material prices. Revenue for the quarter rose 10%.

• Bandhan Bank shares leapt 10% on robust Q1 results; DLF zooms 5% on strong June quarter performance. Larsen gains 2.5% on winning large orders.

• L&T ended unchanged (-0.39%, 3666) despite winning large orders. L&T management maintained its guidance of 15% revenue growth and received orders worth Rs 70,936 crore at the group level during Q1FY25.

# THE TWO BIG POSITIVE CATALYSTS:

Before we end, the silver-linings:

1. Wall Street is concerned about slowing economic growth, but that said the odds of a double-rate cut in September just spiked. (Fed-funds futures now see a 71.5% chance of a 50- basis point cut at the FOMC’s September meeting)

• WTI crude futures fell below $74 per barrel on Friday, the lowest in 2 months.

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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