What are the major trading cues and investment signals for the week starting 08 Jun 2020? Will the rally continue into next week also?

The coming week starting on 08 June will be coming for trade after a 12% rally in the Nifty and Sensex in the last 2 weeks. Here are the major cues for the week.

· After rising 12% in just 2 weeks, Nifty may take a breather and could face some pressure at higher levels.

· Most businesses are opening but COVID cases are also rising faster and that is not a good sign. It may force postponement of opening up.

· Grim growth picture painted by MPC minutes hint that the RBI would try to keep rates low and liquidity abundant. That is a booster.

· Major earnings announcements during the coming week include Hero, Titan, Eicher, Hindalco, M&M, BHEL, PVR and Indian Hotels.

· FIIs pour record Rs.13,900 crore into equities in first week of June, but it is largely driven by block deals in Kotak Bank, Bharti and HDFC Life.

· GST Council meet could announce GST hikes on select products to bridge revenue gap. ITC may have a challenge on hand as it could be a candidate.

· Option writing shifts to 9900 strike and 10,300 strikes. Low VIX should be a positive and could push Nifty to the upper end of the range.

· Timely arrival of monsoon and tapering of Cyclone Nisarga positive. IMD expects normal monsoons at 102% of LPA this year.

· CPI inflation for May and IIP for April to be announced this week. Both will have a key bearing on the markets.

· Markets to keep an eye on global cues including jobless claims in the US, EU GDP estimates, EU IIP, Japan GDP and China vehicle sales.

COVID-19 numbers and Unlock 1.0 could be the biggest triggers to watch out for.