InvestorQ : What are the major trading and investment cues that you see for the coming week starting on 18 May 2020?
Arti Chavan made post

What are the major trading and investment cues that you see for the coming week starting on 18 May 2020?

diksha shah answered.
2 years ago

The coming week will see the markets reacting to the Rs.20 trillion rescue package announced by the government. Global concerns could be an overhang. Here are cues.

· Trump imposing indirect sanctions on Huawei is likely to increase risk perception for equities and worse the Sino-US trade war situation

· Select industries like housing finance, NBFCs, rural oriented sectors, power companies and mining companies are likely to see buying interest

· Lockdown is being extended to May 31 in key geographies. The rising COVID-19 cases (crossed China) will raise the spectre of further lockdowns too

· Reliance Rs.53,125 crore rights opens on May 20 but the partly paid approach will ensure that market liquidity is not sucked up

· All eyes will be on the Vedanta board meeting to see if the delisting price is improved. Else, it could take all metal stocks lower

· Earnings announcements from Bharti Airtel, Bajaj Finance, Bajaj Auto, UPL, Ultratech and Avenue Supermarts will drive market trend

· A major oil related risks this week could the WTI futures settlement on 19 May, after the CFTC warned of another negative price possibility

· Nifty 9000 remains critical support but accumulation in 8500 puts shows clear signs of markets weakening further

· Market direction in the week will also depend on global data points like US jobs data, housing, FOMC minutes, EU manufacturing, Japanese IIP etc

· The $22 sell-off by RBI in US Treasuries is a sign of RBI ready to support rupee, which was visible last week. That will avoid a worsening FII sell-off

· Fiscal deficit could be the joker in the pack. If GFD gets closer to 7.9% of GDP, a sovereign downgrade remains a big risk for markets

While the reform package will be a boost, the real trigger will be global with most of the domestic cues already done.