What are the major trading cues and investment triggers for the week commencing on 29 June 2020?

The major trading cues for the coming week are as under.

· Recoveries from Coronavirus are now exceeding fresh afflictions and that is a signal fo the pandemic finally topping out. That is positive for markets.

· After the 36% rally since March 23, 2020, most medium term upsides may be priced in and Nifty direction may be flat to negative from here on

· The gradual tapering of border tensions amidst more diplomacy could be a market positive and reduces geopolitical risk

· Pharma companies will continue to be the focus as COVID race heats up and markets will be watching pharma companies like Serum, Cipla and Jubilant for COVID cues|

· Unlock predicates on the success of Unlock 1.0 but the time frame of lockdown could be extended in some key states and that is still an overhang

· Monsoons have been above normal in quantum and spread and that hints at lower food inflation going ahead in the next few months

· Quarterly results deadline extended to July 31 and focus this week will be on ONGC, Vodafone, BEL, MRF, ICRA, SAIL etc

· The week will see the June auto sales announced and the two-wheelers and the tractor segment could again drive growth in Q1 Jun-21

· The core sector, PMI manufacturing and services will be closely scanned this week for signs of a possible bounce back

· Current account number Jun 30^th could be a surplus and that could be a boost for sovereign ratings and also for value of the rupee

· Key global macro data include FOMC minutes and jobs data in the US and inflation and economic jobs data in the EU during the week