InvestorQ : What are the trading cues for the cut-short week that starts trading on 01 December? What could be the major trigger points in your view for Nifty and Sensex?
Debbie Mascarenhas made post

What are the trading cues for the cut-short week that starts trading on 01 December? What could be the major trigger points in your view for Nifty and Sensex?

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Arti Chavan answered.
5 months ago
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As the Nifty and the Sensex have closed the week close to their long term resistance levels of 13,000 and 44,500 levels respectively, the next week could be critical in determining direction of the indices. Here are some of the major cues for the week.

· FPI inflows touch record Rs.65,300 crore in month of Nov-20. Interesting the flows in this one month was nearly twice the flows of the first seven months of the current fiscal.

· During the month of November 2020, the Nifty gained 11.4% while the Mid Caps gained 19.4%. Clearly, lot of alpha action is likely to be visible in the mid cap space only.

· Thank the VIX for the rally and that has been supportive in the last week. I see the VIX staying close to the 20 levels hinting at limited downsides and any dips inviting buying.

· Surprisingly, the Q2 GDP contraction at -7.5% is likely to be a morale booster for the markets as it is much better than street estimates of -10.5%

· Watch out for stocks in the metals and capital goods space, which could gain from manufacturing revival, which bounced from -39.3% to +0.6% on MOM basis.

· As the capital cycle revives, cement stocks could be in the limelight on positive core sector growth. Cement turned around to 2.8% favouring pan-India cement players.

· It could be a lacklustre credit policy this week but keep your focus fixated on the changes to accommodative stance, if any. Rate cuts are largely ruled out for now.

· As parts of India see a rise in COVID cases, the big story of the week could be the progress made by the 3 key players on the vaccine. It could be a huge positive.

· Action returns to the IPO market next week with the Rs.810 crore Burger King IPO which could set the tone. Taking cues from Gland Pharma, Burger could see bumper demand.

· Auto numbers for the week could gravitate towards four wheelers even as 2-wheelers stagnate. The auto sales numbers for November could give important cues for autos.

· After oil rallied 30% in November, the OPEC meeting on 01-Dec assumes importance as genuine sharp supply cuts could keep oil above the $50/bbl mark in Brent market.

· Nifty call / put accumulation is consistently shifting higher and has now moved to the plane of 12,750 - 13,150 range. This could be the next big trigger.

· Major global triggers for the week will included the US PMI, home sales, jobless claims, vehicle sales and non-farm payrolls; EU & Japan PMI and retail sales.

This coming week could be crucial in deciding whether the Nifty and Sensex actually break out above resistance levels with volume support.



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