What are the major stock market cues for the upcoming week starting on 06th June?

Here is what you need to watch out for the full week.

a) Last week, Nifty closed 1.4% higher on the strength of banks and IT stocks. IT stocks were up on tech spending boost while mid-caps and small caps were rather mixed. The big stock to watch this week is Reliance Industries on the back of Walgreen UK bid.

b) There are a number of big monetary cues in the current week. The 3 day MPC meet of the RBI will conclude on 08th June with the presentation of the monetary policy. Also watch out for the ECB meeting in the light of inflation touching records in EU region.

c) This is likely to be a dry week for IPO with no IPO listings or any fresh IPOs opening or even closing during the week. However, IPO action is likely to be determined going ahead by the price action of two recent listings viz. LIC and Delhivery.

d) Keep an eye on Brent prices which scaled above $120/bbl as the EU decides to wind down oil purchases from Russia by December 2022. Meanwhile, China inflation will be watched this week as global markets await China fiscal action to boost growth.

e) RBI will update the forex reserves position on Friday and markets will look for the reserves to settle firmly above $600 billion for better import cover. However, rupee is weak at Rs77.694 amidst FPI selling putting pressure on the USDINR levels.

f) Ahead of RBI policy, the 10 year bond yields spiked close to 7.50% and that is the immediate resistance. Above that will be negative for markets. In options space, there is writing in 16,700 call and buying in 16,400 making far bets on weakness post RBI policy.

g) Key US data points focus on Trade Balance, API stocks, Initial Jobless Claims, Core CPI, CPI MOM, Budget balance, WASDE report. In rest of the world economics, the focus will be on UK PMI; EU GDP; Japan Household Spending, GDP, current account; China Caixin PMI, Trade, CPI, PPI. Overall, it is going to be a data heavy week.