The market are extremely fragile and caution investment is the need of the hour. Even after all attempts by the government, the positive Covid -19 cases Are rising at an increasing raste. The bse Sensex corrected 0.83% ,the Nifty50 lost 1.2% and the broader markets fell around 3%. The markets will also remain closed on May 1 due to Maharashtra Day. Undermentioned are the 10 key factors that will keep traders busy in this lagging week :
1. Lockdown Decision- This week will bring with it the much awaited decision about the extension of the lockdown. Expectations are for government to extend it in majorly affected areas, no travel and limited industrial working.
2.Global Trade- The concept of globalisation and foreign investment seems to be avoided by people right now. It’ll be exciting to see how the Foreign institutional investors and foreign direct investors plan to take action.
3. Oil prices- International benchmark Brent crude oil recovered lately. The WTI falling below zero was a shock to the world economy. It also affected the infra companies of India.
4. Stimulus package- Experts feel that a delay in declaration of the package will make it difficult for the MSME industry to survive. Although,with the limited resources not much is expected. If the status quo is maintained by the government it’ll further create pressure on the NBFCs and financials in the economy.
5.F&O expiry – The April derivatives will be expired and position will be rolled over to the next month. An indication that maximum out base price has shifted to 9,000 followed by 8,800 strike is out.
6. International Banks- Federal Reserve, Bank of Japan and European Central Bank are likely to declare their interest rates decision Wednesday, Tuesday and Thursday respectively.
7. Reaction of customers- The demand of goods other than the essential commodities is likely to remain limited due to the incessantly increasing infection cases. It is unlikely that markets will resume normally even if the lockdown ends.
8. Industrial leniency – It is extremely crucial whether the running of factories is permitted or not. And is it is, then under what conditions is the question.
9. Data Release – Studies show a decline in consumer spending, lower corporate investment and rising layoffs. The Nomura experts have predicted 0.5% contraction in the GDP while RBI analysts have cut their growth projections to 1.5-2%.
10. Technicality – BSE and NSE have declined 24% and 25% reflectively. On Monday, with a provisional start, the 9,230 and 9,445 levels are likely to act as overhead resistance, while supports are expected to come in at 9,065 and 8,900 levels.