What are the weekly triggers to watch out for in the stock markets in the coming week starting on 06 September?

The following are some of the major cues you should watch out for in the coming week.

· Last week we saw positive reaction to the 20.1% GDP growth and that is likely to continue, especially since export growth is the driver. The first resistance for Nifty comes at 17,500 in the coming week, with put/call concentration broader at 17,000 and 18,000.

· Two theme trends can be seen this week. Last week NSE Mid-Cap gained 5.11% and small cap gained 4.05%, bettering Nifty returns. That is a good signal of market breadth. Also, expect more focus on defensives like IT, insurance, FMCG during the week.

· Keep an eye on rerating of top private insurers this week post the HDFC Life acquisition of Exide Life. This could be the start of consolidation in private life insurance. However, with a shortened trading week and VIX at 14.54, this week could be lot more volatile.

· There are 2 important data points to watch coming Friday. IIP has been strong on low base, but focus will be on IIP over 2019, which is still negative. Also, forex reserves for the week will be seen as last week was predominantly the SDR allocation effect.

· Overall FPIs looked happy with Rs.6,870 crore inflows. Firstly, oil has topped out at least till the next OPEC meet. Secondly, rupee has strengthened from 75/$ to 73.04/$. Also the pace of vaccinations is picking up with nearly 70 crore inoculations completed.

· The major cues from US markets next week include Vehicle sales, jobless claims, Mortgages, PPI for August and wholesale inventories for July. Also focus on EU PMI, Q2 GDP, ECB Rates; Japan household spends, Q2 GDP, machine tool orders; China Inflation.