InvestorQ : What in your view are the major weekly stock market triggers for the week commencing on 21 December 2020?
shrinidhi Rajan made post

What in your view are the major weekly stock market triggers for the week commencing on 21 December 2020?

diksha shah answered.
2 years ago

Here are some of the key triggers for the week commencing on 21 December and stretching all the way to Christmas.

· The MPC has signalled an accommodative policy till end-2021. With the Fed statement making similar noises, the Indian markets this week will be assured of favourable domestic and international liquidity flows.

· India’s Coronavirus count crossed 1 crore afflictions during the week but the recovery rate has improved to 95% in India. However, the European nations are seeing a resurgence of a more virulent form of virus.

· Two interesting cues are from the US. The USFDA has approved the second COVID vaccine from Moderna, apart from Pfizer BionTech. This assures rapid inoculation. All eyes will be on the quick passage of the $900 billion stimulus package by the US.

· UK Prime Minister, Boris Johnson, warns of BREXIT deal failure if the EU sticks to its side of the story. However, any BREXIT deal failure could be negative for markets.

· Some critical IPO cues this week. Bectors Foods gets listed this week after a 199X oversubscription for the IPO. The last IPO of the year, will also open from Antony Waste Management worth Rs.300 crore.

· Sensex scales 47,000 and the good news come from the VIX staying put around 19 levels. Even as VIX hints at a buy-on-dips market; FPI flows in December were at a whopping Rs.40,000 crore over and above Rs.70,000 crore in November 2020.

· Nifty puts accumulation at 13,600 and call accumulation at 14,000 indicates that Nifty upper band of 14,000 could be breached this week. Meanwhile PSU banks could come under pressure after the fraud investigation launched by CBI against Canara Bank.

· The week is likely to be about global triggers. Markets will look principally for triggers from the US, EU, China and Japan. US Q3GDP, home sales, US jobless claims; Bank of Japan monetary policy and Japan retail sales will be closely watched.