InvestorQ : What are the major trading and investment cues for the week commencing on 11 January 2021? What will drive the Nifty and Sensex next week?
Khushi Patel made post

What are the major trading and investment cues for the week commencing on 11 January 2021? What will drive the Nifty and Sensex next week?

Answer
image
diksha shah answered.
7 days ago
Follow

There a number of important factors that could really drive the markets in the coming week. Here is a quick summary of the cues for the week.

· Nifty close at an all time high of 14,347 and the Sensex closing above 48,750 is a positive signal. What is more interesting is that the accumulation zone of puts has moved up to 14,200 on Nifty and for calls it has moved up to 14,600 implying more gains.

· GDP advance estimates for FY21 pegged at -7.7% and that will be a positive for markets. However, fiscal deficit is projected to touch 7-8% as per government estimates. That raises concerns over ratings and also the value of INR.

· India to roll out biggest vaccination drive to inoculate 30 crore Indians in Phase 1 giving a big boost for pharma and logistics reducing COVID risk in markets. Markets will also watch closely the Phase 3 clinical trials of Bharat Biotech after the bad start.

· A good start to results should be positive. TCS reported robust growth in revenues, OPM and PAT; while D-Mart showed a sharp sequential bounce. This brings good tidings for big results like HDFC Bank, Infosys and HCL Tech during the week.

· It will be a week of key macro data. Inflation data on 12 Jan will be a test of food price impact with Reuters pegging inflation at 5.28%. However, macro concerns are likely on IIP flattening once again and trade deficit widening to above $15 billion for Dec-20.

· FPI flows were robust even in the first week of Jan-20 with Rs.9200 crore coming in. This was aided by the sharp inflow of Rs.6300 crore on Friday showing global appetite for Indian stocks. DFIs continued to be net sellers like in previous months.

Watch out for the big data points this week. The US (US JOLTS, inflation, jobless claims, retail sales, IIP and PPI); Euro Area (IIP, ECB policy, Trade Balance); Japan (machine tool and machinery orders); China inflation and vehicle sales. All these are critical points.
6 Views