InvestorQ : What in your view are the weekly cues to watch out for in the coming week starting on 21st August, Monday?
Debbie Mascarenhas made post

What in your view are the weekly cues to watch out for in the coming week starting on 21st August, Monday?

diksha shah answered.
9 months ago

Here are some of the major cues to watch out for in the coming week starting on 21 August.

· Nifty closed with gains for the fifth week in succession, although gains were muted at 0.30%. Even mid-caps and small caps saw muted gains of 0.6% and 0.4% respectively in the week. However, breadth of markets is still good and one can expect some consolidation as the market digests the data. Next few weeks are uneventful.

· In cues on global flows, the FPIs were net buyers of Rs18,000 crore in August so far. However, the data was somewhat spoilt by the big block sales undertaken by select FPIs like Blackrock. Meanwhile the Bloomberg Dollar Index (DXY) is hovering between 108 and 109 and that has put a lot of pressure on the rupee, pushing it closer to 80/$.

· The F&O expiry will happen in this week and could possibly trigger offloading of long positions in a market that is largely overbought. In addition, the markets will also watch out for Powell’s speech at the Jackson Hole symposium, the annual gathering of the most powerful central banks in the world.

· One thing that has supported the market sentiments is crude hovering lower between $92/bbl and $96/bbl in the Brent market. This is nearly 24% lower over last 2 months The impact may be seen in the forex reserves position of the RBI on Friday, with the reserves already having depleted from $647 billion to $570 billion since start of 2022.

· It is once again time for some IPO action. Syrma SGS IPO will list on the stock exchanges on 26th August and the listing would be interesting considering that it was subscribed 87.56 times by QIBs and by 32.61 times overall. In addition, the IPO of airport service aggregator, Dreamfolks, also opens on 24th August in the coming week.

· In F&O cues, the VIX has hovered around the 17.5 levels despite the sharp movements in the market. In terms of options range indicated by the markets, the call and put accumulation hints at a range of 17,300 to 18,000 for the Nifty. However, with the VIX still tepid, the market still remains ripe for a buy-on-dips market this week.

· In terms of US macro data points, focus will be on composite PMI, new home sales, API stocks, durable goods orders, GDP, jobless claims, Jackson Hole cues. Other key global cues will include EU PMI and Monetary Policy; Japan Composite PMI, BOJ Nakamura Speech and China PBOC action. Jackson Hole could dominate sentiments.