InvestorQ : What are the major cues for the stock markets in the coming week?
Niti Shenoi made post

What are the major cues for the stock markets in the coming week?

Archita Jajjoo answered.
3 years ago

The coming week is going to be interesting and here is what you need to really look out for in the coming week.

· Trade war will be the key to the market direction in the coming week. The US has imposed trade tariffs to the tune of $200 billion. How China reacts and retaliates will be the key thing to watch out this week.

· US yield curve has taken an inverted shape in May after showing the first signs in March. In the US, inverted yield curve has predicted recession in 9 out of 11 occasions.

· CPI inflation will be declared during the week on Monday and that will be the last CPI figure before the June monetary policy. It will largely drive RBI rate action in June.

· Keep an eye on the VIX, which is also called the Fear Index. It is already above 26.50 and if it gets closer to 30 then a lot of traders and investors may panic

· Key quarterly and full-year results of HDFC and ITC will be announced during the week. ITC will be especially important from the consumer sentiment point of view

· The sixth of elections will be completed and the last round next Sunday. This week the markets will start factoring in election outcome uncertainty.

· Trade data will be released on Wednesday and that will be the key to understand the trajectory of exports and trade deficit in the new fiscal year.

· Keep a watch on FII selling during the week? In the first 7 days of trading, FIIs have already sold Rs.3800 crore in the equity markets and you could see more selling this week on the back of election uncertainty.

· Also, crude will continue to be the key factor as the impact of Iran sanctions and a global slowdown will combine to keep oil in a tight range.


K V RAO answered.
3 years ago

The coming weeks are crucial for short term traders. Either they can make or lose heavily. Medium and long term investors should avoid till the new Government formation. Short term traders should also simultaneously hedge the positions. While hedging is a good strategy, it limits the profit potential and also limits the loss. Further the next 10 days will see high level of speculation leading to volatility.