InvestorQ : What are the major trading and investment cues for the trading week commencing on 26 May 2020?
Arti Chavan made post

What are the major trading and investment cues for the trading week commencing on 26 May 2020?

Crowny Pinto answered.
2 years ago

The coming week is likely to be driven by the F&O expiry, opening up of aviation routes in India and the growth signals on the macro front. Here are some key signals.

· Sharp spike in Coronavirus cases could influence lifting of lockdown with the state of Maharashtra reluctant to open up air routes

· Markets are likely to interpret the sharp 40 bps rate cut by the RBI as an admission of deep growth downturn likely in 2021

· March GDP to be announced over the weekend is expected to be negative but markets will look for guidance on next two quarters

· Heavy short selling in Bank Nifty could put pressure on banks over NPA concerns. F&O expiry could offer some short covering relief

· Escalating tensions with China could be the new geopolitical risk for India, especially the Chinese incursions in the Pangong Lake in Leh region

· RBI extension of moratorium to Aug 31 negative for banks and NBFCs as it means tighter cash flows and rising prospects NPAs

· Reliance Rights Entitlements trading to close this week and most of the RIL price action would be visible on RE trading

· Big earnings numbers to watch out during the week include HDFC, Sun Pharma, Lupin, TVS, Voltas, Bata and JSPL

· FPIs sell close to $1 billion of equities in the previous week over growth and risk-off sentiments working against EMs like India

· Crude has more than doubled in the last one month on supply cuts and crude above $50/bbl could put pressure on Indian imports and the INR value

· Watch for Nifty 9000 technical levels and the VIX at 32. Long rolls could remain under pressure but F&O markets will watch for long unwinding pressure

Global data cues for the week include US home sales, US GDP, US jobless claims, Euro inflation and Japan IIP could be critical