InvestorQ : What are the major triggers for traders in the week commencing on 23 December Monday and how to position?
prachi Patwardhan made post

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

3 years ago

For traders in equities and F&O, some of the key trading cues for the week commencing on 23 December will be as under:

· A key interest item for traders will be the outcome of Jharkhand state elections on 23rd of December. The exit polls are projecting majority for INC/JMM alliance; which could be a setback for the reforms process of the BJP government.

· Crude is a cause for worry. Brent Crude prices have sustained above $66/bbl for the previous week. As a result, diesel prices have come under pressure and risen for 3 days in succession. Above $65/bbl, crude is likely to be inflationary.

· There is likely to be some component shifting in the Nifty and Sensex on 23rd December. For example, Titan, Ultratech, Nestle walk into the Sensex while stocks like Tata Motors, Yes Bank and Vedanta move out. ETF action could have larger implications for traders and for investors too.

· Markets will hope and patiently await visible progress on the US-China trade deal first phase. This will set the agenda for the second phase of talks. Deal is likely to be signed in Jan-2020. Improved cues from both sides are positive for global economic sentiments

· We move into the last F&O expiry of the year. That could mean FPI profit booking December 26 expiry will be the last of the year and normally sees pressure of unwinding. There could also be shifting and rationalization of positions.

· FPIs infused Rs.4900 crore during the week gone by into Indian equities. This will be the initial impact of MSCI revamp, which is likely to infuse $2.5 billion into Indian equities. We are already seeing bandwagon buying into key stocks.

India VIX has been gradually weakening over the last few weeks. Now VIX on a consistent downtrend during the week has touched around 12. This is a multi-month low and could be an indication of limited equity market downside risk