What are the major trading triggers for the week starting on 10 August?

For the coming week, there are likely to be a number of key triggers. Let me enumerate a few key triggers for you that could impact the market direction.

· Despite rising COVID numbers, the improvement in the recovery rate to 68% could be good news for further unlocking of businesses

· Technically, 11,200 was the key resistance and will continue to be for next week. Watch VIX closely if it goes sharply above the 25 mark

· Industrial IIP numbers will be announced on 11 August and markets will be keenly looking to the manufacturing IIP for signals of recovery

· MOSPI will also announce the CPI retail Inflation on 12 August and one must remember that lower inflation will be crucial if RBI has to cut rates in the October policy

· The coming week will also see data on bank loan and deposits growth after a sharp fall last fortnight? The and markets will await a positive growth trend on bank credit

· Banks and financials overall may come under pressure on one-time restructuring for businesses and individual borrowers. Broadly it will be credit negative for banks

· Higher LTV ratio of 90% on gold loans announced in the monetary policy will boost gold lending business at banks at the cost of gold loan NBFCs. Position accordingly.

· The week could be another boost for agri-related stocks. Apart from good rainfall, additional Rs.5000 crore outlay by RBI for farm lending could be positive

· Keep an eye on the all important tug-of-war between the US and China’s Tik-Tok. A US ban, as claimed by Trump, could have larger repercussions for global trade

· One global macro risk for equity markets is spot gold prices at above $2000/oz as it hints at panic. Ideally, gold below $2000 would be favourable for equities

· Piyush Goyal has claimed 91% growth in exports and if the trade data on 14 Aug is anything close to that, it will be a positive for markets

· This week, look for mid cap results like CARE, Indoco, eclerx, SH Kelkar, Praj as well as global data points like China inflation, US Jobs, Singapore GDP, US Redbook and UK GDP

The COVID issue has begun to matter less to the global markets now.