InvestorQ : What are your major trading signals for the next trading week starting on 05 April 2021?
Riya Dwivedi made post

What are your major trading signals for the next trading week starting on 05 April 2021?

diksha shah answered.
1 year ago

Here are some of the major trading signals for the coming week.

· The big positive trigger for the markets in the coming week will be Joe Biden’s $2.3 trillion infrastructure boost package. However, there are some headwinds in the form of rapidly rising COVID infections at close to 100,000 per day.

· It was a strong month and year for autos. Passenger vehicles numbers came in strong for March 2021, and it matters due to the manufacturing heft of autos. The trigger could come from the 22% YOY rise in tractor sales. March tractor sales were 240% higher yoy.

· US bond yields stayed elevated above 1.72% despite the dovish outlook painted by the FOMC. That is a concern for equity values. Domestic MFs infused Rs.4,000 crore during the week in equities to boost year-end NAV, even as FPIs sold Rs.767 crore in the week.

· RBI rate action and stance on monetary accommodation will be watched although consensus is on status. That is also evident from the VIX coming down to 20 levels indicating very little event risk anticipated in the monetary policy.

· Earnings season to kick off in this week and key earnings are expected next week. The immediate trigger will be disappointing contraction of -4.6% in core sector. All eyes this week will be on PMI Manufacturing and the Composite PMI.

· Barbecue Nation IPO lists on 07 April amidst weak GMP and Macrotech Rs.2,500 crore IPO will also open on 07 April. However, the put/call accumulation range indicates a higher range of 14,500/15,200, which could be positive for the IPO response and listing.

Key US data points include US Markit PMI, March Factory Orders, FOMC Minutes, Jobless Claims, PPI and inventories. Additionally, China PMI, China Inflation; Japan PMI, Japan consumer confidence, ECB Monetary Policy and ECB Feb PPI will be in focus.