What are the major triggers for the stock markets you see for the week starting on 10th January 2022?

Here are some of the major triggers for the coming week.

· For the past week, the Nifty gained 2.64% over year-end while the mid-cap index gained 0.66% and the small cap benchmark was up by 1.8% in the week. For the coming week, you can expect large caps and small caps to relatively do better than mid-cap indices.

· For the coming week, markets will react to the first advance estimate of GDP at 9.2% for FY22. However, the week will be a dry week for IPOs as companies are in the side lines ahead of the LIC DRHP filing. Greater stance on RBI hawkishness will also help.

· Two sentiment drivers for the coming week will be the election announcement in Punjab and UP with markets hoping for status quo in UP to further the national reforms process. Meanwhile, Maharashtra is tightening controls to check the spread of Omicron.

· Big results of TCS, Wipro and Infosys for Q3 on 12th January will set the trend for the results season. Budget expectations will also commence as markets are hoping for a slew of reliefs for the retail investors amidst burgeoning demat accounts.

· In big macro data, CPI inflation and IIP on 12th January will be key. CPI is expected to spike to 5.8% for December, while IIP is likely to taper 20 bps to 3% for Nov-21. The bigger market data will be WPI inflation where base effect could pull it down to 13.5%.

· In market direction triggers, the Call and Put writing moves rang has moved up to 18,000 and 17,500 strike levels respectively. This indicates 18,000 as resistance for Nifty in the week but VIX at 17.4 signals a strong support at 17,500. This could trigger buy on dips.

· Key US data points focus on Mortgage applications, core CPI, Redbook, crude inventories, gasoline output, jobless claims, PPI. Other data points to watch include EU Unemployment, EU IIP, UK IIP, trade; Japan Forex, PPI; China CPI, PPI, trade surplus, housing prices.