InvestorQ : Can you tell me the major trading clues for the coming week? How should I position my trade for the week starting on 08 February?
Debbie Mascarenhas made post

Can you tell me the major trading clues for the coming week? How should I position my trade for the week starting on 08 February?

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diksha shah answered.
3 weeks ago
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Here are some of the key triggers for the week starting on 08 February.

· Budget effect resulted in a rally of 4200 points on the Sensex. Some of the budget positives like fiscal deficit, bad bank and monetization will longer but the key levels to watch this week will be 15,000 on the Nifty and 51,000 on the Sensex.

· VIX has tapered from 25.34 to 23.5, but it is still high for markets to bottom out decisively. Considering the 9.6% returns on the index last week, some amount of position lightening could be on the cards in the coming week.

· Some of the big earnings slated for the coming week include BPCL, Tata Steel, Adani SEZ, Eicher, Hindalco, Grasim, ITC and ONGC. ITC FMCG division will be of specific interest after the stock rallied 15% on the back of no new duties on cigarettes.

· FPIs bought Rs.13,600 crore of equities in the last week with a lot of futures buying happening in the Bank Nifty in F&O. After the 17% rally in a single week, Bank Nifty could continue to play out the good news from the Budget and the Monetary Policy.

· It is a week of big macro numbers. CPI inflation on 12 February will focus on food inflation and core inflation after RBI target of 5.2% for FY21. Market will also hope for a turnaround in IIP on 12 Feb after -1.9% contraction in Nov-20 and -3.6% in Oct-20.

· The week will be about two time tables for the feel good factor. It is over to Niti Aayog for time table on divesting BPCL, CONCOR, SCI and PSU banks. Markets will also await time table of vaccinations after record inoculations and lowest virus deaths last week.

· Even as options data suggests a range of 14,500 to 15,200 for the Nifty, the hope will be another week of upside breakout. Friendly global cues from US MBA mortgages, Jan inflation, jobs data, Japan machine tool orders and China vehicle sales could be critical.

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