weekly cap 1 TRIGGERS WEEKLY (JUN 22–JUN 26)

Trigger for the Week

How will it impact?

  • Markets will be watchful of the rising Coronavirus numbers
  • The daily afflictions crossed a record 16,000 level and that will remain an overhang on the markets
  • Reliance stock will hold the key this week after the huge rally
  • RIL led the rally last week on its zero-net debt promise as well as plans to list Jio and Reliance Retail
  • Keep an eye on the border tensions between India and China
  • While diplomacy is at work, any further escalation of tensions will worsen the economic impact on markets
  • Brent crude prices stayed at around $42/bbl and that should be positive
  • Markets, however, would be worried about the inflation impact of the 11% spike in petrol and diesel prices
  • FPI flows turned tepid this week after two weeks of inflows
  • It was a mixed third week after Rs.22,000 crore inflows in first two weeks and that could hold the key next week
  • Keep an eye on the F&O expiry on the 25th of June this week
  • Markets will be watching for some unwinding pressure due to the rising tensions on the China border
  • Rupee decisively breached the Rs.76/$ mark during the week
  • Rupee weakened to 76.25/$ as FPIs continued to prefer other Asian market debt over Indian debt paper
  • Big earnings announcements are expected during the week
  • Some big numbers expected include ITC, Asian Paints, GAIL, Coal India, IOC, HAL, BEML and PSU banks
  • LIC divestment push should be a positive for budget targets
  • Government will initiate LIC divestment process this week and that could positive for fiscal deficit targets
  • Forex reserves touched $508 billion during the week gone by
  • This is the highest level and covers 14 months of average imports, making the external situation comfortable
  • Markets will await the outcome of the RIL / Future group talks
  • RIL is expected to take a controlling stake in Future Retail and group companies which could boost retail
  • Steel stocks will be in focus after Petroleum minister commitment
  • The $160 billion oil sector investment will need 50 MT of steel and most procurement may be done domestically
  • Put option strike accumulation hints at range bound market
  • Call writing on Nifty 10,500 and put writing on Nifty 10,000 could keep the index in a range
  • Key macro data points at the global front are due this week
  • India CAD, US home sales, jobless claims, Q1 GDP, US spending and IIP growth in EU and Japan will be the key

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