InvestorQ : What are the major stock market cues that you see for the trading week beginning on 25 January 2021?
vidhya Laxmi made post

What are the major stock market cues that you see for the trading week beginning on 25 January 2021?

diksha shah answered.
1 year ago

Here are some of the key stock markets cues that you got to watch out for in the coming week starting on 25 Jan.

· Sensex faced resistance at 50,000, which was expected. That will be the next big level to watch since the week saw two sharp corrections from the 50,000 levels. VIX wavered between 22 and 25 and markets will look for VIX to come below 20 to surge higher.

· The big market reaction will be to Reliance Results after stellar EBITDA growth by its digital business. Over 375 companies including L&T, Kotak Bank, Axis Bank, HUL, Maruti, ICICI Bank, Tata Motors and Vedanta will be giving out Q3 numbers this week.

· In the US, it will be about Joe Biden and FOMC meet. Biden has started to undo some of Trump’s policies and markets await his COVID stance and economic policy. On 27 Jan, markets will hope for FOMC to remain accommodative and keep rates low.

· It will be a hectic COVID week. Markets will need clarity on the impact and damage to Serum’s COVID plan caused by the fire accident. The focus will also be on the resurgence of the virus strain in China and Europe even as India recovery crosses 96%.

· Budget preparations and IPOs will keep the week busy. Markets will look for budget hints on fiscal deficit, divestments, personal taxes and reforms. In IPOs, Home First IPO closes on Monday, Stove Craft opens on 25-Jan and Indigo Paints lists during the week.

· Call accumulation is focused on 15,000 and puts on 14,000 strikes laying out a very broad range of 1000 points. Eventually it boil down to FII buoyancy with Rs.4176 crore infused in the week and Rs.21,000 crore in the Jan month-to-date.

· Key domestic macros include bank credit, deposits growth, forex reserves, Dec-20 Core Sector and Dec-20 fiscal deficit on Friday. Global data points include US durable goods orders, Fed rates, Q4 GDP, jobs, home sales, BOJ meet, Japan IIP, retail sales.