InvestorQ : What are the major triggers that you see for the coming Diwali week of trading starting from November 09?
Arusha Ray made post

What are the major triggers that you see for the coming Diwali week of trading starting from November 09?

diksha shah answered.
3 years ago

The big news continues to be the US elections outcome and that has already got a positive stamp of approval. Here are some key triggers to watch for the week.

· With the Nifty closing above the 12,250 mark, traders can expect a bout of short covering to prop the markets higher next week. However, upsides could be limited.

· Watch out for the statements of Biden and the world markets are likely to bet on de-freezing trade. China relations will be key trigger in the coming days.

· Bihar elections outcome will be known on 10 November. Exit polls are predicting a hung assembly but markets will be keen to see if it is some sort of anti-incumbency vote

· With the US election outcome out of the way, Indian markets are once again betting that the government may go ahead with stimulus. FM has already indicated that.

· Q2 results so far have been optimistic about pharma, banks and FMCG. The hints are that demand in the economy is coming back paving the way GDP accretion now.

· While top-10 results are done, there are 2600 companies slated to announce earnings this week including ONGC, Tata Steel, Hindalco, GAIL, M&M, Aurobindo and Grasim.

· Watch out for the big 2 data points this week of IIP and CPI inflation. More critical will be retail inflation where the first impact of good Kharif is expected to be visible.

· FPIs bought Rs.13,400 crore worth of equities in the last 3 days even as domestic funds sold over Rs.12,000 crore in equities in the month of October. It could be mixed.

· In IPO market triggers, the Rs.6500 crore Gland Pharma IPO will open on Monday to test pharma appetite. Street expects good oversubscription post the anchor placement.

· Nifty put / call writing range has shifted to 12,000 to 12,500. Now Nifty has gone up to a different plane altogether in the market view. That is positive with VIX also at just 20.

· Big global data triggers for the week include US Jobless claims, inflation data, EU industrial output, Japan manufacturing orders and China inflation.