InvestorQ : What are the major trading and investment cues for the last week of December 2020 commencing on 28 December?
Rashi Mehra made post

What are the major trading and investment cues for the last week of December 2020 commencing on 28 December?

diksha shah answered.
2 years ago

There are a number of factors that could have a bearing on the stock market performance in the last week of December. Let me summarize a few key triggers for the week.

· Indices showed a sharp rebound after the sharp correction on Monday, which is a good sign. However, the volumes in the last week are likely to be slightly weak as institutional investors will look to protect their profits in the last week.

· The all important F&O expiry is scheduled on 31 December, which is the last day of the year. While BREXIT was the positive boost for the markets last week, it also means that the market remains heavily long and there could be unwinding pressure.

· Even as the new virus strain has spread beyond UK to other European nations, the global risk is largely offset by the fact that the COVID recovery rate in India has improved from 95.4% to 95.8% in India. This is a positive signal.

· The government starts the dry run of vaccine testing in five states in the coming and that is also giving a strong reason why the put accumulation has moved from 13,500 to 13,700 even as upper end of the band of call accumulation stays at 14,000.

· Two major manufacturing data announcements during the week will be the auto numbers and the core sector numbers towards the end of this week. It needs to be seen if the recovery in autos and other segments can outlast the festive segment.

· FPI flows were lower at Rs.2591 crore this week even as total FPI flows during the month till date stood at Rs.41,000 crore on top of the Nov-20 record flows. The one macro data point the FPIs will be watching is the fiscal deficit number, which could again shoot up.

· On the IPO front, the Rs.4300 crore IRFC IPO is likely to open during the week. It is attractively priced and could attract retail and QIB investors. Also, the Antony Waste IPO is listing during the week, which may not be as aggressive as Burger King and Bectors.

· Finally, the important global market triggers for the week will include the US home sales, MBA mortgage applications, jobless claims and Japan industrial production numbers.