InvestorQ : What are the major trading and investment cues that you see for the trading week starting on 22 March?
Tisha Malhotra made post

What are the major trading and investment cues that you see for the trading week starting on 22 March?

diksha shah answered.
1 year ago

Here are some of the major cues and triggers for the coming week starting on 22 March.

· During the previous week, the Sensex corrected by 934 points but the encouraging factor was the sharp 1200 points bounce from lower levels on Friday. The real short term concern could be rise in COVID cases in India, vaccination pace being languid.

· US Bond yields rallied all the way up to 1.74% during the week, despite the FOMC dovishness on inflation fears. As a result, the Indian bond yields also closed at a 1-year high of 6.18%, as traders worry if the RBI can hold on to its accommodative stance.

· The Rs.453 crore IPO of Barbeque Nation opens next week and will be a test of the attractiveness of the QSR model. There are 4 IPO listings this week including Anupam Rasayan, Laxmi Organic, Kalyan Jewellers and Craftsman Automation.

· FPI flows stay volatile in the last week but was positive at Rs.5984 crore in the week and Rs.9000 crore in March till date. These flows were on account of FT Index revamp. Despite the fall in crude from $70 to $65, traders expect the rally to resume.

· Two key announcements will be watched this week. Firstly, announcements on Perpetual Bonds will be key as it could impact selling by mutual funds in AT-1 bonds. Markets also await cues on PSU dividends after a slew of big dividend declarations.

· On the Nifty, the maximum put writing was seen in 14,500 strike and maximum call writing at 15,500 strikes, hinting at limited downsides and more upsides to the market. That is also ratified by the VIX index in India falling from 26 levels down to 19.9 levels.

· Key data points from the US include home sales, Powell testimony, Markit PMI, Q4 GDP, initial jobless claims and spending data. Major data cues from Europe include Euro PMI Manufacturing and Euro PMI Services plus the BOJ meet and JIBUN PMI data in Japan.