What are likely to the major stock market trading cues for the week starting on 11 May? Do you see further correction in the Nifty?

The overall situation is still uncertain on the COVID-19 front as well as on the global trade war. But, the two big factors now will be GDP growth outlook and government stimulus. Here are some major trading cues for the week.

· COVID-19 cases in India crossed 60,000 cases with more than 2100 casualties. Lockdown could be extended to end of May; so urgent stimulus by government could be a cue.

· Banks and AMC stock see pressure on the back of disappointing results by ICICI Bank and HDFC AMC. COVID-19 provisions high on both sectors.

· Big spurt in borrowing target at Rs.12 trillion could push up bond yields and depress equity markets. High debt companies could come under strain this week.

· Technical level to watch will be Nifty 9000. Any fall below 9000 with volumes will be negative for the sentiments in the market.

· Deep negative GDP estimates by Goldman and Nomura raises the spectre of a full-fledged rating downgrade by Moody’s in the coming weeks.

· Big earnings numbers expected during the week include Maruti, Kotak Bank, Reddy Labs, Cipla and Biocon. Pharma could hold the key to a surprise rally.

· Trump comments on restart of trade war have not gone down well with world markets. Trade data on 15 May will hold the key to ensure the damage is not too deep.

· CPI and IIP data on 12 May and WPI data on 14 May will give an indication of the lockdown impact and future growth / liquidity trajectory.

· Watch out for oil and rupee levels. Brent holding above $30/bbl and INR stabilizing in the range of 75-76/$ could be a positive trigger for markets.

· Key global data points this week include, US jobless claims, US inflation, retail sales, and industrial output across Europe and China.