what are the major trading and investment triggers for the week commencing on 13th January 2020?

Here are some of the major triggers for the markets for the coming week.

· Technology is likely to be the key driver of the markets in the week. Stock markets are expected to react positively to Infosys results and TCS expectations and other tech expectations as well as volatile rupee could hold the key

· Easing Middle East worries will be a positive factor for the markets, especially with the US refraining from retaliating to Iran’s attacks on US facilities

· FPI selling in debt (despite buying in equities) could be a concern for stock markets at Rs.3200 cr since this debt selling was largely driven by risk-off selling on the back of volatile rupee

· Keep an eye on the rally in mid caps by 1.24% and small caps by 3.26% which is indicative of a gradual broadening of the rally in the markets overall

· A very important trigger could be if the Phase 1 of trade deal is signed as expected on January 15. It is likely to be a big boost for growth sentiments and demand for metal stocks and other commodities

· Watch out for the bellwether quarterly results of TCS, HDFC Bank, Reliance, HCL Tech and Wipro as these stocks could set the tone for the market indices

· GRMs of Reliance Industries in the December quarter will be the key and the market reaction will substantially depend on whether the RIL GRMs are able to do better than $10.50/bbl; which is the street expectation

· December inflation data will be closely watched on Monday. With IIP coming in positive, lower than 5.54% inflation will be seen as positive by the markets. Markets will also look at stabilization of WPI inflation during the week.

· Oil and rupee hold the key to short term. Brent crude fall from $70/bbl and the INR bounce from 72/$ could be the critical levels for the week

· Trade data will also be announced during the week and exports and imports will hold the key. Faster fall in imports should be positive, especially with forex reserves crossing $461 billion this week

· Pre budget hints from the government will be watched, especially with respect to hints on tax cuts, LTCG tax treatment and fiscal deficit, ahead of the budget

· Key data points for the week in the US markets will include inflation, retail sales, jobless claims, IIP and Baker Hughes rig count etc

· Lastly, the Government decision to ease coal mine licenses will be a positive as it will boost coal supplies and will be a value enhancer for power stocks during the week