InvestorQ : What are the major weekly triggers that you see for the stock markets in the week starting on 23 November 2020?
swati Bakhda made post

What are the major weekly triggers that you see for the stock markets in the week starting on 23 November 2020?

diksha shah answered.
3 years ago

Here are some of the key triggers for the market during the week starting on 23 November till 27 November.

· Sensex faces resistance at 44,000 and Nifty faces a brief resistance at 13,000 and that was the reason both corrected from that level. That will be crucial for the next up move of the market.

· Keep an eye on foreign portfolios flows. They continued to be rabidly positive. In fact, FPI inflows touched Rs.46,000 crore in Nov-20. That is nearly 30% more than the combined flows for the seven month period from April to October this y ear.

· What happens to the vaccine will be the million dollar question. Next steps on phase 3 trials and the efficacy rates will be closely watched by global markets. Currently, Pfizer and Moderna have achieved 94% efficacy ratio with AstraZeneca just a tad behind.

· Gujarat and the rising COVID casers could be a worry. Markets are closely watching at the relapse of COVID in India. The second round of lockdown in major cities of Gujarat is not a great signal; either for the economy or for the markets.

· Diwali week saw strength in the rupee as it gained heft from 74.60/$ to 74.15/$, clearly spurred by FPI flows. The Dollar index has also been weakening in the last few weeks and that could spur FPI arbitrage flows further.

· F&O expiry on Thursday will give a picture of rollover interest as well as the risk of unwinding at higher levels. But the bigger area of interest will be where the OI accumulates for calls and puts. For now it is 12,600 and 13,100 on the Nifty.

· Private Banks will most likely react positively to new proposals of the Independent Working Group of IWG of the RBI. IWG has proposed promoters holding hiked to 26% in banks instead of 15%; a major positive for the new private banks.

· Large group stocks like Tatas, Birlas, Bajaj and Mahidras may be in the limelight as large corporate houses are allowed into banking. Positive moves on NBFCs are also expected as banking licenses on tap could be available quite easily.

· Gland Pharma post listing to be of interest next week. The stock opened with 13% premium and closed with 20% premium on Friday. Critical cue for pharma IPOs.

· Focus shifts to cues on 3 big macro data points in next 10 days including PMI manufacturing, PMI Services, core sector and Sep-20 GDP for revival cues.

· Finally, watch out for international data points like the US Markit PMI, Q3GDP, jobless claims, home sales and FOMC minutes; EU PMI, ECB policy. All these can be decisive.