InvestorQ : What are the weekly stock market triggers that you foresee for the week starting 07 June?
Arusha Ray made post

What are the weekly stock market triggers that you foresee for the week starting 07 June?

diksha shah answered.
2 years ago

The following are some of the major triggers for the stock market in the coming week starting on 07 June.

· During the week, Nifty closed above 15,600 and Sensex above 52,000. Mid-caps regained their mojo with 4% gains in the week. The coming week will be driven by mid-cap stocks and timely progress of monsoon. Rains have already made landfall.

· Sector focus for the week will be on sugar, hotels and QSR stocks. Here is why. Sugar stocks could gain early 20% ethanol blending target. Hotels and QSR stocks get much needed boost from the special RBI lending window for contact intensive sectors.

· Coronavirus is still the billion dollar question. With most states opening up in a phased manner from Monday, a lot will depend on the roll out. Also, vaccination pace and timetable is the key with daily cases falling to just about 1.20 lakhs.

· Among industry flows, earnings numbers for the week include GAIL, CBI, Union Bank, Bata, Cera, SAIL, BEML, BHEL, DLF and Sun TV. Friday will see the IIP numbers announced and like in core sector, the focus will shift to sequential, rather than, yoy growth.

· With Oil and $72/bbl, the RBI could be confronted with a bigger borrowing target. RBI signals on GSAPs, borrowings and forex intervention will be in focus. With petrol above Rs.100/litre in most cities, inflation could be the joker in the pack.

· FIIs bought Rs.3,050 crore of equities in June first week and it does look like a turnaround in sentiments after the strain of April and May. VIX at a 17-month low of 15.94 only adds to their confidence of limited downsides. FPIs will be in focus.

· Key US data points include US MBA mortgages, wholesale inventories, inflation and initial jobless claims. Other global data points focus on EU Q1 GDP, ECB rates; Japan GDP, machine tool orders, PPI; China inflation and vehicle sales.