InvestorQ : How do you see the stock market indices for the coming week starting on 04th April?
Arusha Ray made post

How do you see the stock market indices for the coming week starting on 04th April?

diksha shah answered.
12 months ago

Here are some of the major cues for the coming week for the markets overall.

· Nifty was up 300 bps during the week with across-the-board buying in banks, autos, financials, and the FMCG sector. Markets will keep an eye on the Ukraine war situation and the rise of COVID in China. Markets will be pleased as long as the war situation does not aggravate, nor does the Shanghai lockdown. The big X-factor could be the gold standard plan for Russia.

· In big monetary macro data, bank loan and deposit release will be crucial ahead of FY22 results. The big event for the week will be the monetary policy which is likely to do a 25 bps rate hike but may retain the monetary stance as accommodative. One also needs to keep an eye on the FOMC minutes announced in the coming week for hawkish cues.

· During the week, the US yield curve inverted raising growth concerns in the US over sustained rate hikes in the medium term. This may induce RBI to stay accommodative for longer. Meanwhile, the Shanghai syndrome and lockdowns led to Brent Crude cracking back to the $104 levels.

· Foreign portfolio investors sold Rs.140,010 crore in FY22, despite robust IPO inflows. The good news is that deep selling is followed by buying by FPIs. The rupee showed strength and is likely to gain from pressure on the dollar and Euro due to the Russian gold peg move.

· In key domestic data points, the PMI data for manufacturing and services will be announced this week. This gives an idea of the short-term momentum picture of economic growth and positive cues are expected on both fronts. In terms of investment strategy, VIX at below 21 signals a buy-on dips strategy for traders.

· Key data points from US markets include factory orders, PMI composite, jobless claims, MBA mortgages, vehicle sales, and FOMC minutes. Data points from the rest of the world include EU PMI, retail sales, consumer confidence; Japan PMI, household spending; China's March composite PMI data. FOMC minutes of the US Fed will hold the key.