What are the major triggers for investors in the week commencing on 23 December Monday and how to position for the coming week?

For positional investors in equities, some of the key investment cues for the week commencing on 23 December will be as under:

· Watch out for Jharkhand state elections on 23rd of December. The exit polls are projecting majority for INC/JMM alliance; could be a setback.

· Pre-budget hints and outcome of pre budget discussions could hold the key to traders. Markets will await hints from the finance minister Nirmala Sitharaman on personal taxes, corporate taxes and SME relief. All can be sentiment drivers for the markets.

· Yield twisting program of Rs.10,000 crore commences on Monday 23 December 2019. It is a unique program to buy long end bonds and sell short end bonds. Success of the Bond Twisting program (buying long end and selling short end) will set bond yield agenda and will impact traders too.

· Clarity on BREXIT will be a major positive after Johnson clears BREXIT deal. Greater clarity would mean lesser risk for UK-heavy stocks like Tata Motors, Tata Steel, TCS, MSIL etc. The enhanced certainty will be a positive.

· USD / INR will be closely watched after the late rupee weakening. With rupee weakening beyond 71/$, the rising dollar looks likely to impact FPI flows into India. Dollar index could hold the key to the market movement.

· RIL stake sale plan to Saudi Aramco hits a roadblock. This will put pressure on the stock and the markets too. This will impact RIL’s debt reduction plan and the most valuable company in India could see some investor jitters

· On the global front, the durable goods sales and home sales data in the US could hold the key to global consumption. These data points are likely to be an important barometer of how the US economy is shaping up

· China Industrial Profits for November will be keenly awaited. This will be a key variable impacting Chinese industrial demand and hence base metal prices. Indian metal and alloy companies need to watch out.