InvestorQ : Hi Diksha, can you give me your trading view for the coming week starting on 10 May and what are the triggers I should look for?
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Hi Diksha, can you give me your trading view for the coming week starting on 10 May and what are the triggers I should look for?

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diksha shah answered.
2 months ago
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It could be a tricky week with a lot of data flows. Here are some of the major triggers I see for the coming week.

· Nifty closed short of 15,000 and serious high-beta buying will come after that level is breached. The trend last week was a big rally in metals and caution in consumer stocks. With consumer stocks showing input cost pressures, that trend could continue.

· COVID cases are falling in urban Maharashtra but rural and semi-urban India is seeing a spike, so overall news is not too great. That is keeping FPIs on the side-lines as they again sold Rs.5,093 of equities in the first week.

· Big results this week include, Aarti Industries, BASF, Godrej Consumer, Asian Paints, Lupin, Tata Power, UPL, Piramal Enterprises, Cipla and Vedanta. In a show of support to the Nifty VIX has tapered sharply to the 20.82 levels.

· RBI’s Rs.50,000 crore package for COVID relief will drive sentiments and has built up hopes of a fiscal stimulus. It is hoped that the MSME rescue package could be a boost to MSMEs and exports. With trade deficit at $15 billion, trade data on Friday will be crucial.

· Copper prices have rallied to life-time highs, driven by supply limits and demand from electric cars. The rally in metals and minerals is likely to spike WPI inflation from 7.39% to 9%. WPI data on Friday will be keenly watched.

· The all-important CPI inflation and IIP will be announced on 12 May. CPI inflation is expected to taper from 5.52% to 4.2% while March IIP is anticipated to turn around from -3.6% to +17% on Mar-20 base effect. That could be good news.

· Key US data focus on US OPEC monthly, Redbook, API crude stocks, core CPI, jobless claims and retail sales. Focus will also be on Japan Household Spending, current account, M3, China CPI, UK GDP and global CFTC net positions.


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