InvestorQ : What are the major trading cues and signals for the trading week starting on 22 June 2020 and do you see the markets correcting?
Dilmini Mercia made post

What are the major trading cues and signals for the trading week starting on 22 June 2020 and do you see the markets correcting?

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Dhwani Mehta answered.
4 months ago
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Whether the markets correct or nor will depend on how a number of factors, both domestic and international play out. Here are some of the major cues to watch out this week.

· The daily Coronavirus afflictions crossed a record 16,000 level and that will remain an overhang on the markets in the coming week

· RIL led the rally last week touching all-time high of Rs.1759 and market cap of $150 billion. Its zero-net debt promise and plans to list Jio and Reliance Retail is the key.

· Border tensions between India and China are simmering and any escalation of tensions will be negative for the markets

· Brent prices were stable above $42/bbl but there could be an inflation impact of the 11% spike in petrol and diesel prices for 14 days in succession

· FPI flows have tapered after a robust 2 weeks. After Rs.22,000 crore inflows in first two weeks flows were almost flat in the third week. That could be a key factor.

· F&O expiry on 25th of June will key to any unwinding pressure due to the rising tensions on the China border

· Currency could be a risk. Rupee breached the Rs.76/$ to close at 76.25/$ as FPIs continued to prefer other Asian market debt over Indian debt paper

· Some big numbers expected include ITC, Asian Paints, GAIL, Coal India, IOC, HAL, BEML and PSU banks could give a picture of PSU banks and FMCG companies

· Big news for the week will be progress on the LIC divestment front. Rapid moves on that front would should be a positive for budgetary revenue targets

· Retail stocks would be on the radar to see if the deal between Reliance Retail and Future retail progresses during the coming week

· Steel stocks could be the dark horse as the $160 billion oil sector investments will need 50 MT of steel and most procurement may be done domestically

· Call writing on Nifty 10,500 strike and put writing on Nifty 10,000 strike could keep the index in a fairly narrow range for the expiry week

· India announces CAD during this week while US announces home sales, jobless claims, Q1 GDP, and spending data. Watch out for IIP growth in EU and Japan

Of all the above factors, the China factor could hold the key to Indian markets.



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