InvestorQ : What in your view are the major triggers for the stock market in the week commencing on 15 February 2021?
Arusha Ray made post

What in your view are the major triggers for the stock market in the week commencing on 15 February 2021?

diksha shah answered.
1 year ago

The following are some of the major cues in the market for the week commencing on 15 February, which could decide the direction of the markets going ahead.

a) Currently, both the Nifty and Sensex are in uncharted territory with the Nifty above 15,100 and Sensex above 51,000. With the options data hinting at an upper range of 15,300-15,500 for Nifty, only a decisive breach will set the tone for the next leg.

b) Sharply lower CPI inflation at 4.06% positive for rate sensitives like banks, autos and realty with accommodative stance looking assured. This week will see the announcement of Trade data for January and WPI data also for January 2021.

c) More than 95% of the NSE-500 companies have come out with numbers already. Among the popular companies to announce numbers in the coming week are Nestle, Ambuja Cements, R Systems, Mahindra CIE, Jet and Binani Industries.

d) IPOs are back in the reckoning with the IPOs of RailTel and Nureca slated to open for subscription on Monday 15 February. The week will also see listing of Brookfield REIT on 17 February; a good test for emergence of REITs as an alternative asset class.

e) FIIs have already brought in Rs.39,400 crore into Indian equities in the months of Jan-21 and Feb-21 till date. With this, the total infusion in FY21 has crossed Rs.200,000 crore. The sharply lower Coronavirus cases and inoculations beyond 8 million are positive.

f) Crude oil above $62/bbl in the Brent market could be a worry. Crude is expected to cross $65/bbl in the next few weeks and eventually venture towards $70/bbl. That could impact petrol and diesel prices as well as retail inflation.

g) Some key global data points are expected to influence the week. These include US retail sales, industrial output, FOMC minutes, jobless claims and housing starts. In addition, EU IIP, EU GDP, ECB policy, Japan IIP, machinery orders and Japan inflation will also matter.