Hey guys,
Markets had the worst month since the start of the Covid-19 pandemic. Nifty and Sensex dropped ~5% each. 🤕
Soaring oil prices, record FII selling, and an all-time low rupee dented investor sentiment. Rising interest rates and US balance sheet unwinding plus continued Russia-Ukraine tensions added further pressure. Metal (-13%) stocks extended their losing streak to a third straight month. Auto (+1%) was the only sector to close in the green in June. 💪
As expected, the RBI increased interest rates for the second time in the space of one month! The Monetary Policy Committee (MPC) voted unanimously to raise the repo rate by 0.50% and withdraw its “accommodative” stance. Fears of further rate hikes as inflation expectations inched upwards left investors nervous. 😟
Zomato took a massive dump after agreeing to buy Blinkit (earlier Grofers) in an all-stock deal worth Rs 4,447 cr. Shoddy disclosure, questionable deal valuation, and doubts over the startup’s roadmap to profitability hurt sentiment. 🔻
Demand slowdown in China, the world’s largest metal consumer, and GOI’s move to impose hefty duties on the export of steel products and their raw materials sent metal stocks crashing. Vedanta, National Aluminum, and Hindustan Zinc dropped between 25%-30% each. 👎
Cryptos got beat up big time. The space is still reeling from Do ‘The Con’ Kwon shenanigans with Terra’s LUNA and $UST.X. Harmony’s $100 million Horizon bridge hack plus fears of crypto lender Celsius going bankrupt piled on the negative sentiment as Bitcoin had the worst month in 11 years! 💔
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Kush Ghodasara is a SEBI registered research analyst with over a decade of stock market experience. He holds an MBA in finance and is a chartered market technician (CMT). He shares active research calls that provide his followers with an in-depth view of the markets.
Kush considers himself a positional trader and his stock pick for July’22 is, none other than, $ITC.NSE
His top trade idea on Stocktwits was on $RELIANCE.NSE and its given returns of 9% 🤯
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Top Trade Ideas in June that had double-digit returns 💰
