InvestorQ : What are the major trading and investment cues for the stock markets for the week commencing on 09 March 2020?
rhea Babu made post

What are the major trading and investment cues for the stock markets for the week commencing on 09 March 2020?

2 years ago

Yes Bank and the Coronavirus syndrome that will continue to direct the market trajectory in the coming week. Here are some key triggers for the week.

· Driving story will be the rapid global spread of the Coronavirus as deaths outside China are at 350 and India has reported close to 40 cases. That remains the overhang

· Psychological levels are the key to the week. Nifty closed below 11,000 and Sensex below 38,000. They will remain resistances this week

· Big event last week was the Yes Bank moratorium. It will keep smaller private banks under stress. Banks with higher gross NPAs to be more vulnerable

· SBI’s Rs.10,000 crore rescue plan will help Bank-Nifty bottom out after the huge correction last week. That could give a base to the market overall

· Keep an eye on a mega China stimulus during the week. It could be directed at boosting exports and trade and that could benefit all global markets

· Pressure intensified on Brent Crude prices as it plunged to $45/bbl. Russia’s refusal to support OPEC on supply cuts will pressure oil prices; a positive for mid caps in India

· Big bang BPCL divestment bids kick off. It will be the largest single divestment and could set the tone for the massive divestment plan next fiscal year

· FII selling on all days of March on global pandemic fears kept markets under pressure and the risk-off shift is likely keep markets volatile

· Yes Bank AT1 bonds write-off to trigger Rs.3000 crore losses to bond funds and could impact flows into debt funds and also force selling in risky assets

· IIP numbers for January to be announced on March 12. Markets will assess impact of the virus on output with focus on metals and capital goods

· CPI Inflation for February will also be announced on March 12 and could be key to RBI action, especially after the surprise 50 bps cut by the Fed

· Rupee weakens to Rs.73.80/$ on capital outflow worries. RBI intervention at 74 will be the key. Overall, weak rupee negative for markets.