InvestorQ : What in your opinion are the major trading cues for the trading week starting on 17 May?
Deepa Salunkhe made post

What in your opinion are the major trading cues for the trading week starting on 17 May?

diksha shah answered.
2 years ago

Here are some of the major cues to watch out for in the coming week. Of course, there are warnings of a cyclone in between, but that may not really amount to much.

· Nifty continues to face resistance at 15,000 levels and even the call writing is hinting at that despite VIX at around 20. Mid-cap and small-cap indices fell much sharper than the Nifty and that could put pressure on the broad market breadth this week.

· COVID cases are seeing a rapid spread in rural areas and that could hit sales of tractors, FMCG, two-wheelers, fertilizers, farm inputs, agrochemicals, etc. Although COVID cases have tapered by about 20% daily, the hinterland impact is a worry for rural demand.

· Big results for the week include Bharti, Tata Motors, Hindalco, SBI, IOCL, Shree Cements, Colgate, and Canara Bank. SBI could be the joker in the pack with a positive surprise on the back of high provisions leading to a low base in the corresponding quarter.

· IIP at 22.35% and retail inflation falling to 4.29% failed to excite markets due to the apparent base effect. Meanwhile, WPI inflation on 17 May will be a big data item as an indicator of input cost pressures on companies.

· FIIs are surely not betting a rally with nearly Rs.8,700 crore pulled in the first half of May on rising pandemic cases. Heavy institutional call writing at the 14,900 and 15,000 strikes of Nifty indicates that these levels will be the overhang for the markets overall.

· The US data points for the week include Housing Stats, Building Permits, FOMC Minutes and jobless claims, home sales, PMI Flash. Also watch out for Euro GDP, EU inflation, ECB stability review, PMI Flash; Japan GDP, machine tools orders and the China IIP.