weekly Triggres – Aug 31st

Triggers Weekly 3 weekly Triggres   Aug 31st

Trigger for the Week

How will it impact?

  • US Fed’s new Policy Framework triggers a rally in the Nifty
  • The framework talks about low rates sustaining for next 3-5 years and will hold markets up next week too
  • Deal between RIL and Future to drive sentiments during the week
  • The big deal would have positive implications for Future group in particular and retail sector in general
  • Market players will await the core sector numbers on 31 August
  • The core sector has been improving in last 3 months and July data could provide the clearest picture
  • Auto numbers break-up will hold the key to auto sector
  • Markets will be keen to watch if the positive cues extend beyond the tractors and entry-level vehicles segment
  • All important GDP for June quarter will be announced on Aug 31
  • This will be the much awaited contraction number that will set the tone for Q2 and the full fiscal year growth
  • Nifty nears resistance of 11,800 with call writing seen at 12,000
  • With Nifty at a 6-month high, the rally ahead may predicate on whether 11,800 is broken decisively
  • Big earnings releases are slated during the week
  • Big corporate results in the week include ONGC, NALCO, Coal India, GMDC, NHPC, Zuari Agro, NLC India etc
  • The Coronavirus infections are rising at 70,000 per day on average
  • The good news is that the recovery rate has been held at 75% giving hope of the pandemic topping out soon
  • Progress on the COVID vaccine will be an important data point
  • With unlocking gathering momentum, a lot will depend on how quickly Serum moves to the vaccine stage
  • FIIs have infused more than Rs.45,000 crore during August
  • This is a major positive for market sentiments as FIIs have been consistent buyers on a daily basis
  • Markets will be watching how much the INR strengthens from 73.13/$
  • The rupee is already at a 5-month high with best 1-week returns in 2 years. FPI flows have helped the INR
  • VIX remains subdued at around the 18.25 levels
  • VIX remaining below 20 is an indication that any dip in the market may only be temporary in nature
  • PMI manufacturing and services will be awaited for momentum signals
  • While PMI has been improving, it is yet to show signs of positive momentum build-up and that will be a boost
  • Markets will look for global data triggers from US, EU and China
  • US PMI, Jobless Claims, non-farm payrolls, Euro overall PMI, Japan IIP and China PMI will be closely watched

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