InvestorQ : What are the major triggers for trading in the week starting on 01 March? Will the correction continue during the week?
Crowny Pinto made post

What are the major triggers for trading in the week starting on 01 March? Will the correction continue during the week?

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diksha shah answered.
2 months ago
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The following are some of the key triggers for markets in the coming week.

· Markets could be neutral to positive on Q3 GDP growth at 0.4%. Core sector growth at 0.1% hints at infra back to pre-COVID levels but 2 consecutive months of positive core sector growth is positive. High frequency PMI data will be a major talking point.

· The market correction began with soaring bond yields so that remains the big story for the week. US bond yields have spiked from 0.68% to 1.40% India bond yields have spiked by over 45 bps. RBI action on capping yields at 6% will be observed.

· On the fundamentals, the PLI on IT hardware and pharma will be a major positive, entailing an investment of Rs.20,000 crore. Meanwhile, markets will await details of auto numbers for Feb-21 to check if momentum of last few months sustains.

· IPOs have been in the news and this week will see the MTAR IPO opening on 03-Mar after strong anchor placement. MTAR is a niche play on precision products. The listing of Heranba IPO will be of interest considering its over 80 times subscription response.

· Volatility index or VIX that spiked by 22% on Friday to near 29 levels will remain a short-term concern for markets as it indicates high fear in markets. Also, FPIs sold Rs.8300 crore on Friday markets will watch for any FPI trajectory shifts in March 2021.

· The 1939 points correction in Sensex and 568 points fall in Nifty on Black Friday could see an impact as it hinted at a mix of delivery selling and trade unwinding. The trading halt last week made traders wary of leveraged positions and that will be an overhang.

· Crude prices will assume importance after the US air strikes on Iranian targets on Thursday. Global data points will include US bond yields, FOMC member speak, US Markit, US jobs data, US Redbook, EU retail sales and Chinese Manufacturing.

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