InvestorQ : What are the major trading cues and investment triggers for the trading week starting on 15 June?
Dia Deshpande made post

What are the major trading cues and investment triggers for the trading week starting on 15 June?

diksha shah answered.
12 months ago

The macros continue to be challenging and the Fed has already given an outlook of 6.5% contraction in the US GDP. That will weigh on the markets. Here are some key cues.

· IIP contraction by 55% for April 20 will be an overhang for industrials next week as it was driven by weak manufacturing output for April 2020

· There is little respite from Coronavirus cases; rising at more than 10,000 per day. Markets are wary of another round of lockdown in key states

· Pressure on IT stocks to continue. Fed minutes projected 6.5% GDP contraction and 9.5% unemployment implying lower tech spending

· Keep an eye on the Reliance rights listing on 15 June especially the premium that the Reliance partly-paid shares command in the market

· Oil prices could hold a positive cue as they weakened below $40 per bbl and should offer a support floor for the Nifty levels

· Some good news on the rating front as S&P retained India’s outlook at Stable. This was a welcome move after Moody’s downgrade as it shows S&P is still optimistic on India

· Watch out for significant earnings announcements including Tata Motors, HPCL, Oil India, IPCA, NMDC, IGL, Muthoot, NATCO, Pidilite, REC

· FII turned net sellers to the tune of Rs.1732 crore during the week but overall inflows for June are still robust at Rs.12,200 crore which is positive

· Bank Nifty could hold the key this week. Bank Nifty rally tapered last week after rallying 22% in 12 days. NPA overhang post EMI moratorium was a key issue

· Market risk is evident from the higher levels of VIX this week, which bounced back to close above the 31 levels. This shows a market clouded by greater uncertainty

· Watch out for balance of trade data on 15 June to get a hang of trade deficit. Big positive last week was forex reserves crossing $500 billion

· Global macro data points include US IIP, jobs and retail sales; EU inflation and trade data and Bank of Japan rate view