InvestorQ : What are the major trading and investing cues for the trading week starting on 13 April 2020?
sarah Leo made post

What are the major trading and investing cues for the trading week starting on 13 April 2020?

vidhya Laxmi answered.
3 years ago

The week will again be a truncated week with no trading on 14 April on account of Ambedkar Jayanti. Here are the cues for the coming week markets.

· The markets will watch the huge COVID-19 case additions in the US and UK, which are critical business partners for India. Indian lockdown extension will be important.

· CPI inflation on 13 April will be evaluated to see if lower levels are being driven by demand slowdown or supply push

· FPIs infused Rs.4422 crore during the week. It remains to be seen if the stimulus hopes have converted FPIs into net buyers.

· OPEC and Russia could support supply cuts of 10 million bpd of crude. Any cut above 10 million bpd will be positive for crude prices

· Expect the markets to react to the 4.5% IIP growth for February 2020. However, markets will be worried about the March and April impact of lockdown on IIP

· Trade data will be announced on 15 April. More than lower trade deficit, markets will focus on robust export growth prospects

· Markets will be keen to see if there is a follow up to the previous stimulus package. The SME package is expected at Rs.1 trillion plus.

· Rupee weakened to 76.55/$ with little support from RBI and markets in general and FPIs in particular will focus on currency traction

· Can pharma continue to drive market sentiments? Thrust on generics, lenient FDA norms and low valuations have helped and that could hold the key to sentiments

· Good news is that VIX has cooled below 50 from a high of 86. But it needs to drop below the psychological 30-levels to confirm any market uptrend

· Big results like TCS, Wipro and HDFC bank kick off in the week. Markets will look out for COVID-19 impact cues

· US data points on jobless claims will be keenly watched. After doubling to 6 million in 2 weeks, any further spike will signal recession possibilities in the US