InvestorQ : What could be the major trading and investment cues for the trading week commencing on 30 January 2020?
Dilmini Mercia made post

What could be the major trading and investment cues for the trading week commencing on 30 January 2020?

Answer
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Dhwani Mehta answered.
7 months ago


As Indian markets enter a crucial week, the key triggers for the market in the coming week could be as under.

· US Coronavirus pandemic has crossed 1.25 lakhs and casualties more than 2500. DJIA had crashed on Friday and this downtrend could hit Indian market sentiments

· India could have a migrant labour problem creating an exodus risks which could escalate the COVID-19 numbers in India

· Oil prices will be key even as OPEC admits to 20% compression in crude oil demand. Idle refining capacity is negative for extractors and refiners globally

· Rate sensitives like banks, NBFCs and realty could benefit from the 75 bps rate even as EMI rescheduling could be credit negative

· FII selling has tapered during the week, but if the US slows then risk-off could again come to the fore in April 2020. Rupee strength could be critical for markets

· Markets expect government to announce fiscal this week with a slew of tax cuts and exemptions to neutralize lockdown

· Banking stocks have accumulated shorts and the liquidity boost of $50 billion could lead to a surge in short covering in banking stocks

· Core sector numbers expected to see negative growth and could impact sentiments. Auto shutdowns may be visible on March auto numbers

· Most important indicator could be the VIX, where cooling will be a deciding factor. VIX has tapered from 86 to 70 but it is still too high to warrant markets bottoming out