Key developments that will drive the markets this week

Let us look at the key developments this week.

December 20, 2021 7:24 IST | India Infoline News Service
Indian stock market in the last week lost nearly 3% following weak global cues. Besides, the hawkish stance by the US Fed, the news of a sharp rise in COVID cases globally turned the participants cautious. Market participants are keeping a close watch on the Covid situation due to the new variant and related updates will continue to induce volatility in days to come. Further, CMS Info Systems, India’s largest cash management company, will open for subscription next week.

Let us look at the key developments this week.

IPO in focus

Five listings are lined up for the coming week which are Shriram Properties, MapmyIndia, Metro Brands, Medplus and Data Patterns.

Supriya Lifescience will close the public issue on December 20. The offer, so far, has been subscribed 5.69 times on the second day.

CMS Info Systems will open its initial public offering for subscription on December 21-23, 2021. The price band for the offer has been fixed at Rs205-216 per equity share.

RBI policy minutes

RBI Minutes of the last bi-monthly policy review are due for a release on December 22.

FII flow

FIIs have net sold Rs10,452cr worth of shares in the cash market during the week, continuing selling for the 23rd day on December 17. On the other side, DIIs have supported the market with net buying of Rs6,341cr worth of shares.

Global economy data

United States: Quarterly data on the GDP of the world's largest economy is due on Wednesday. On the same day, the Energy Information Administration (EIA) will publish data on crude oil stockpiles.

On Thursday, data on home sales in the US is due.

Europe: The United Kingdom will release its quarterly GDP numbers on Wednesday, separate data on consumer confidence in Germany and the UK will be released on Tuesday and Thursday respectively.

Asia: Hong Kong's inflation data is due on Tuesday.

Minutes of the Bank of Japan's last policy review will be out on Wednesday. Data on inflation in the country is due on Friday.

Rapid spread of Omicron cases

India’s Omicron Covid count rose to 126 on Saturday after Karnataka and Kerala reported six and four cases respectively, while three more persons in Maharashtra also tested positive for the variant. Whereas, India's on Sunday cases of Omicron count mounted to 147 within 17 days, after two people, including a teenager, tested positive for the variant after recently returning to Gujarat from the United Kingdom.

Gold & Silver Outlook

MCX Gold moved up above the recent consolidation on the daily chart. On the daily chart, the price has moved above 20EMA. Also, the 20EMA and 50EMA are in the bullish crossover. Momentum indicator, RSI on the daily timeframe is in the bullish crossover. Therefore, the price may remain positive during the next few days. On the lower end, immediate support is visible at 47500, below which price may correct towards 46800. On the higher end resistance is visible at 49500/50300.

MCX Silver price moved up after consolidation on the daily chart. The recent move put the price above 20EMA on the daily chart. However, the price has remained below the 50-day exponential moving average. The 20EMA and 50EMA are in the bearish crossover. RSI on the daily timeframe has entered the bullish crossover. The bias is expected to remain sideward to positive over the short term. Support is seen at 59500 whereas resistance is visible at 62600/63500.

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