InvestorQ : What are the major trading cues for the week starting on 14 December and ending on 18 December?
Debbie Mascarenhas made post

What are the major trading cues for the week starting on 14 December and ending on 18 December?

diksha shah answered.
3 years ago

Here are some important cues for the coming week that you need to focus on.

· The all important IIP data was announced on Friday evening and was better than expected at +3.63% for Oct-20. This will encourage stocks in the capital goods and also the consumer goods sector.

· CPI inflation for November 2020 will be announced on Monday and the MPC minutes later in the week. Put together, they will give a clearer picture of whether rate hikes are feasible although going ahead the accommodative stance looks set to continue.

· The week will also see the announcement of the trade data for November 2020. The markets will look for the export numbers of goods which had fallen sharply in Oct-20.

· The big focus will be the sharp fall in afflictions in India and the vaccine rollout by Pfizer and BionTech. Remember, to focus on airlines, logistic companies that have the biggest role to play in the vaccine distribution activity.

· Burger King IPO listing on 15 December will be at test for attractiveness of QSR companies. Incidentally, its biggest bakery supplier Bectors Foods also sees its IPO opening on December 15 next week. Grey market premiums are robust in both cases.

· Brent Crude Oil scaled $50/bbl during the latter part of the week. While it is a macro signal of economic revival, for Indian oil extraction and refining companies, it comes as an added bonus to boost performance.

· Sensex above 46,000 and Nifty above 13,500 are both in uncharted territory. The big support for the indices in the next week will come from VIX below 20. Also focus on the option call writing shifting higher closer to the 14,000 mark.

· The $900 billion US stimulus talks will be closely watched in the coming week by domestic players and FPIs. FPIs infused Rs.26,928 crore in Dec-20 on top of Rs.65,000 crore infused in November. That holds the key to robust flows.

The ECB added stimulus has helped gold and that may work against equities. Meanwhile, big macro triggers for the week includes the US IIP, MFG, crude inventories, Fed Rates decision; UK jobs, BOE decision; Japan Trade and China IIP.