What are the weekly stock market trading cues to watch out for in the next week starting on 04 October?

Some of the key trading cues to watch out for next week are as under.

· The Sensex faced resistance at 60,000 and the Nifty at 18,000 and was the first losing week after 5 weeks of gains. In terms of sentiments, Evergrande of China, the power crisis globally as well as rising US inflation will be the key cues to watch.

· With the Zee Invesco battle getting murkier, the stock is likely to be under pressure, leading to downward re-rating of media stocks. Power stocks will be in focus on higher PLF, coal shortage, and better prices of power on the IEX.

· The positive PMI at 53.7 was supported by GST collections at a 5-month high of Rs.1.17 trillion. With COVID, vaccinations crossing 90 crores, FPI flows should be back once the uncertainty over US bond yields is done.

· The big news will be the RBI monetary policy to be presented on 08th October. The markets are building expectations of a 15-20 bps spike in reverse repo rates from 3.35% to 3.50%-3.55%. That could impact bond yields in India too.

· With a Sep-21 trade deficit at $23 billion, expect FPI selling on higher deficit concerns and weakness in the rupee. Gold import curbs also cannot be ruled out. FPI outflows could keep the Nifty constricted in the range of 17,250 to 17,500.

· One sector that could see action will be gas-related stocks after the government hiked natural gas prices by 79% to $2.90/MMBtu. For this week, it will be positive for ONGC and RIL but expect pressure on CGD stocks and fertilizer stocks.

· US data Focus on Factory Orders, Trade Deficit, PMI, Crude Stocks, FOMC speak, building permits, jobless rates. Other country data focus on EU PMI, PPI, Retail Sales, ECB Account, UK PMI; Japan Inflation, PMI, current account; China PMI, FX.