InvestorQ : What are the major trading and investment cues for the trading week starting on 04 May 2020 and how will markets behave?
Ria Jain made post

What are the major trading and investment cues for the trading week starting on 04 May 2020 and how will markets behave?

Answer
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Anu Biswas answered.
5 months ago


Of course, the COVID-19 progress and the likely return of the trade war will be the big stories in the coming week even as the lockdown continues for another 15 days.

· Global COVID-19 afflictions crossed 3.5 million and casualties stand at 2.5 lakhs. UK is now the second worst affected and Gilead and Oxford Research hold the key.

· Big story could be the US threat to impose penal tariffs on China as a retaliation for China’s delayed action in the COVID-19 pandemic.

· Nifty could open gap down on SGX Nifty losing 6% on Friday due to the likely impact of global tariff war.

· Big question is whether the stimulus package will be announced this week. It will most likely favour small businesses and will include tax breaks.

· Reliance could react positively to the 1:15 rights issue in the coming week and also to the achieving of zero-net debt status by December 2020 itself.

· Despite heavy selling in debt paper, FPIs reported net buying Rs.1652 crore in equities underlining that risk-off maybe shifting to risk-on

· Earnings focus for the week will be on the big names like ICICI Bank, HCL Tech, Adani Ports SEZ, SBI Life and Yes Bank. Most are expected to disappoint this quarter.

· Oil and rupee could be critical factors. Oil bounced back to $26/bbl while rupee gained 180 bps during the week. Both are positive signs for the market.

· Weak core sector (-6.5%) and zero auto sales are expected to weigh negatively on capital goods and infrastructure sector. PMI data could hint at momentum.

· The week will include some key global data points; especially from the US including factory data, balance of trade, jobless claims, GDP growth etc.

· The week could be crucial technically. Nifty above 10,000 will be positive for future traction while Nifty below 9000 could be back to bearish sentiments.

Traders must keep an eye on how the trade war situation pans out in the week.