InvestorQ : What are the major trading and investing cues for the coming week starting on 24 August 2020? Do you see major correction in Nifty and Sensex?
NISHA Nayak made post

What are the major trading and investing cues for the coming week starting on 24 August 2020? Do you see major correction in Nifty and Sensex?

Answer
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Priyanka N answered.
2 months ago


It looks like the coming week may be largely uneventful, including the F&O expiry on Thursday the 27 of August. Here are some major cues you can focus on.

· Now there are officially more than 3 million COVID afflictions and despite 75% recovery rate, unlocking may take longer than anticipated

· Like the last week, the next week could also belong to mid and small caps, which were up 3.66% and 5.5% respectively last week. Action is shifting to the smaller stocks

· Foreign investors are back with bang as FPIs infused Rs.33,300 crore in the first 20 days of August. FPIs are trending more risk-on towards emerging markets like India.

· GST Council meeting on Aug 27th may be significant for the sharing with states and also for the measures it may take to enhance GST revenues

· FOMC minutes of the US Federal Reserve hinted at sufficient liquidity supply despite low growth. Indian markets will bet less on growth and more on liquidity

· MPC minutes virtually rule out rate cuts in October 2020 policy and even December only just about looks likely. Greater clarity is sought on food inflation and GDP growth

· Over 300 small and medium companies will declare results including important names like IGL, IRB Infra, LIC Housing, Suzlon, IRCON, P&G, ICRA, IDFC and NMDC

· There is good news comes on the VIX front as it has fallen below 20 after a long time. VIX chart shows lower-tops and lower-bottom formation.

· Final update on EMI moratorium is expected during the week. Expectation is that moratorium will not b extended so financials may come under pressure

· Big story could be progress on the LIC IPO, which will be crucial to decide the fiscal gap that government will be left with in March 2021

· Global data triggers for the week include US home sales, jobless claims, July spending, GDP estimate, EU economic sentiments and Japan industrial numbers



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Dinesh C Nagpal answered.
2 months ago


BANK NIFTY is extremely bullish while IT appear to be in v short term weakness and RELIANCE has support near 2050. NIFTY on the other hand has resistance near 11500-11600. It has strong support for the settlement at 11375 below that 11275 which is a crucial support for further uptrend.