InvestorQ : What are the major trading cues you see for the stock markets in the week starting on 22 February?
Dia Deshpande made post

What are the major trading cues you see for the stock markets in the week starting on 22 February?

diksha shah answered.
2 years ago

Here are some of the major cues that you need to watch out for in the coming week.

· Nifty closed below key supports of 15,000 and Sensex below 51,000, which could become the resistance. Call and put OI ranges have widened with put OI accumulation at 14,000 and call OI at 16,000 Nifty hinting at huge range volatility.

· FPIs infused Rs.4,408 in the week and Rs.23,874 crore in the month of February so far. However, rising Coronavirus cases could dampen sentiments on fears that strict lockdown measures could resume.

· Overall sales revenues for Q3 were 2.5% higher with just a handful remaining. The focus shifts to third quarter GDP and whether the signals of earnings are visible in GDP numbers. This quarter is the key to the expected recovery in FY22.

· It is an interesting week for IPO markets. IPO of Heranba Industries opens on 23 Feb and the issue will test whether IPO momentum sustains. In addition, RailTel and Nureca are scheduled to list in the week on 26 Feb after a stellar response.

· It is an important week at policy level. All eyes will be on the rationalization of PSUs proposed in the policy paper. Markets also await details on PLI in telecom and oil & gas investments worth Rs.750,000 crore.

· Brent Crude faced resistance at $65/bbl after Texas showed signs of pushing output higher. Since, Texas accounts for 40% of US output, focus will shift to the OPEC to see if they relent on supply expansion for the time being.

There are key data points for the week. The US data points include Housing price index, Fed Clarida speech, Q4 GDP and the US Federal Budget. In addition, UK unemployment, Japan industrial production and China housing prices will also matter.