What are the major trading and investing cues and signals for the trading week commencing on 03 Aug 2020?

Here are some of the key triggers and signals for the coming week.

· Daily COVID cases crossed 55,000 on more aggressive testing and this could mean delays in Unlock 3.0 and longer lockdowns.

· Level of 11,200 proved to be a resistance for Nifty as it was unable to scale beyond 11,200 despite repeated attempts. That could be the immediate hurdle.

· Core Sector growth at -15% but gives hope for some sectors like cement and fertilizers where traction is visible in Jun-20 data

· Revival in auto numbers as it gets back to pre-COVID levels. Big rural thrust visible in the two-wheeler demand on the back of rural income traction

· Extension of loan moratorium, expiring on 31 Aug, could hold the key as markets are expecting an extension till December 2020

· Indian crop planting rises 14% on early monsoon onset. Monsoon for August and September estimated at 104% of long period average or LPA

· FM to announce new PSU policy with strategic sectors redefined. With LIC IPO in the works, this could provide a time table for aggressive divestment of PSUs

· Big news will be the RBI policy statement on 06 August. Rate cut of 25 bps is factored in but rate sensitive stocks will look for liquidity infusion outlook

· With large cap results largely done, focus shifts to key mid cap results like Canara Bank, BEML, VST, BSE, Unichem, CERA, Sobha, Balrampur, JSW Holdings this week

· Key global data triggers include global PMI data, July inflation, US-ISM, Trade balance, US Factory orders and Crude inventories among others