InvestorQ : What are the key market triggers you see for the trading week starting from 16 November? I understand it is a four-trading day week?
Dhwani Mehta made post

What are the key market triggers you see for the trading week starting from 16 November? I understand it is a four-trading day week?

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diksha shah answered.
2 weeks ago
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Yes, you are right. Monday is a non-trading day on account of Balipratipada and BhaiDooj, which normally falls 2 days after Diwali. Hence you have only 4 trading days this week. Here are some key triggers that I see for the coming week starting on 17 November.

· Short covering took the Nifty to 12,750 and with Stimulus 3.0 also at play, you could see market sentiments pushing the Nifty and Sensex to new highs

· There was some optimism in the IIP which finally recovered to a small positive figure of 0.24% after a gap of 7 months. Strong revival in demand is positive for FMCG stocks.

· Spurt in inflation to 7.61% in Oct-20 could put pressure on banks and financials as high inflation and negative real rates could shift the RBI stance away from accommodative.

· A four-day truncated trading week would mean more short covering and could push Nifty closer to 13,000 levels for the first time.

· Coronavirus recovery improved to 93% during the week and this should be positive as it gives hope to sectors like retail, tourism, multiplexes, hospitality etc.

· WPI data will be announced on Monday will be critical as it will indicate if the higher prices indicated by CPI are getting translated into higher producer yields

· FPIs infused Rs.19,755 crore during the week taking total equity infusion to Rs.33,100 crore in Nov-20. This could add more fuel to the current rally.

· Rupee weakness could deepen due to negative real rates in India. Last week, higher inflation weakened INR to 74.60/$ and the DXY strength could deepen this INR cut.

· Gland Pharma IPO will be listing on 20 November. It will be interesting considering it was the largest pharma IPO, China owned and got subscribed only 2.06X times.

· Nifty put-writing shifts higher to 12,600 and call-writing to 13,000. With VIX below 20, it also indicates strong support for Nifty at 12,600 levels.

· Overall for 3000 companies, Q2 net profits doubled YOY, sales down 5.7% and gross profits higher by 10.2%. That is the best quarter in last on year.

· Global cues like the US IIP, retail sales, jobless claims, EU October inflation, Japan GDP, IIP, inflation and China IIP could influence market direction.



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