InvestorQ : What are the major stock market signals that you see for the coming week starting on 13 December?
Dhwani Mehta made post

What are the major stock market signals that you see for the coming week starting on 13 December?

diksha shah answered.
2 years ago

Here are some of the major stock market cues for the coming week starting 13-Dec.

· Last week, Nifty and Mid Cap index closed 2% higher, more as a reaction to the dovish monetary policy. This week will be a reality check as Omicron is far from over. The cases may not have spurted in India, but Indian markets remain wary of a likely impact in Europe. Falling VIX and call / put writing hint at a range of 17,200 to 17,800 on Nifty.

· A series of macro cues can be expected this week. Firstly, markets will react to the 3.2% IIP growth announced late on Friday. The cumulative growth is getting positive, which is positive. But the bigger cue will be the CPI inflation and WPI inflation on Monday and Tuesday as the impact of the base effect and producer price inflation will be visible.

· It is a busy week for IPOs. Star Health had good listing, but this week is reality check. Metro Brands and MapmyIndia, that opened last week, will close this week. In addition, 4 IPOs; Medplus Health, Data Patterns, HP Adhesives and Supriya Lifesciences will open for subscription. Watch for listing of Tega Industries, Anand Rathi Wealth and Rategain.

· An important data point for the INR this week will be the Nov-21 trade data to be announced on 15th December. Trade deficit is already pegged at record highs and that should be a concern for Rupee. With FPI selling continuing to be consistent at Rs.9,200 crore, we could see more pressure on the rupee due to trade data and FOMC action.

· The 15-Dec FOMC meet statement will be one of the most important in recent times. Fed statement could focus on front-ending taper and a timetable of rate hikes next year. The driving sentiment will be US inflation for November at multi-decade highs of 6.8%. This is the highest inflation in the US since 1982 and calls for rapid Fed response.

· Key data points from US markets this week will include FOMC outcome, PPI, retail sales, IIP, Housing Starts, Building Permits, Jobless Claims, PMI Flash. Other data points from the rest of the world will include EU IIP, PMI, Inflation, ECB Meet; Japan BOJ rates, PMI, Machinery Orders; China IIP and Retail Sales.