InvestorQ : What are the major trading and investing triggers for the trading week starting on February 10, 2020?
Debbie Mascarenhas made post

What are the major trading and investing triggers for the trading week starting on February 10, 2020?

Crowny Pinto answered.
2 years ago

Now, the two major policy announcements in the form of the Union Budget and the Credit Policy are out of the way and the overhang is still likely to continue. Let us look at the major triggers for the coming week commencing on 10 Feb 2020.

· Banks and financials are expected to react positively to the monetary policy. While the rates were held, the liquidity infusion will be positive for financials.

· Another set of stocks in action could be the real estate pack. The RBI instruction not to downgrade realty debt for another year and CRR benefits could be positive.

· Of course, keep an eye on the China virus pandemic which could be the key to global cues. With death toll above 750, Chinese stimulus impact could hold the key.

· Politics is back and Delhi elections could dampen spirits if NDA does below par. Markets could react negatively on 11 Feb if the exit polls are proved to be correct.

· Oil prices at $54/bbl have been a positive for India. Keep an eye on the demand slowdown due to pandemic fears and the US excess supply glut.

· Watch out for the auto sector which could also revive as it got a reprieve from CRR maintenance on incremental loans by banks.

· Track the value of the rupee that corrected to 71.50/$. Rupee could weaken due to strong dollar and weak FII flows; not really positive.

· Big numbers expected this week include marquee names like GAIL, CIL, BPCL, ONGC, BHEL, Oil India, Hindalco; which could play a role.

· CPI inflation and IIP will be released on February 12. Inflation at 7.35% in Dec-19 will be key input as will IIP, which bounced to positive in Nov-19.

· Keep a watch on dividend payout announcements by cash rich companies expected to dole out generous dividends post budget DDT impact.

· Correction on Friday after the weekly rally could be an overhang and the markets may bide its time in the coming week.

Key global data points to be watched include Fed Testimony, US inflation and jobless claims, Euro area IIP and GDP and China inflation