F&O expiry, crude oil prices, FII flow among key factors that will guide market next week

Benchmark equity indices are likely to remain volatile in the forthcoming week as traders roll over positions in the F&O segment from the near month January series to February series. The February 2021 F&O contracts will expire on Thursday, 25 February 2021.

Macroeconomic data, the movement of rupee against the dollar and crude oil prices will dictate trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be in focus in the week ahead.

On the macro front, India’s gross domestic product (GDP) for the fourth quarter will be released on 26 February 2021.

India’s infrastructure output data for January will be unveiled on 26 February 2021.

Global cues will continue to be in focus. Updates related to COVID-19 will be closely watched. Also on the radar will be news on Covid vaccine development. From here on the pace of the improvement of economic indicators along with outcomes of a possible vaccine or cure for COVID-19 would determine the movement of the market.

Total COVID-19 confirmed cases worldwide stood at 10,99,01,090 with 24,30,096 deaths. India reported 1,37,342 active cases of COVID-19 infection and 1,56,014 deaths while 1,06,56,845 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Overseas, China will announce Loan Prime Rate for 1 year and 5 years on 22 February 2021.

The United States Durable Goods Orders for January will be declared on 25 February 2021.

(With inputs from Capital Markets)