Stock Markets with Anil Singhvi: US stimulus package is the trigger to watch for, says Market Guru

The mood in Global markets is extremely sluggish and slow, however there are no indications of any slowdown in the markets at this stage. There are no signs of reversal emanating from the markets as yet, says Zee Business Managing Editor Anil Singhvi. Market has been soaring every week; it is not possible to move up every week. Market should consolidate in a range before moving up further. US markets always pause before moving ahead which is good for the health of the markets, Singhvi added. 

Markets have hardly corrected in the past few sessions, there has been good buying on every downfall and the fall did not sustain for more than 2 days. The fall helps to take the weak participants out of the system.

पिछले हफ्ते ग्लोबल बाजारों में रही सुस्ती, क्या इस हफ्ते लगाएंगे दौड़?

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Market Guru said there are 3 big triggers in the US markets:-

1. Situation of the Vaccine is extremely critical and it is just a matter of time before Vaccines are being supplied to the end users in the market. Each and every one will get the vaccine, so one trigger related to vaccine seems to be resolved.
2. US Markets have clearly accepted Joe Biden as the New President of the US and the transition has happened smoothly and swiftly. Tweet from former US President Trump is not seen to have any impact on markets anymore.
3. Last but not the least, trigger for the US market is the stimulus package. This is indeed crucial and important to monitor not only for the US markets but also for other global markets and emerging markets like India. Not only is the timing of the stimulus but also the size of the stimulus important to watch out for.

Anil Singhvi said it is possible to see some action on Stimulus for the US markets. Unless the stimulus package is announced, market may remain strong and would not fall sharply. In case, if the size of the US stimulus is meeting the expectations or better than expected, then markets may move up further. Also, markets may see some profit booking if the size of the stimulus is below the expectations. US markets are slow as they are waiting to understand the depth of the stimulus. 

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Significantly, the Market Guru said that this week the stimulus issue should be resolved and seems like market may not fall until it is announced.

So, before markets go into the mood of Christmas and New Year celebration, US Stimulus will be the most important factor to monitor.