Investors added over Rs 9 trillion in the week ended Friday, as Indian stocks witnessed a steady upward journey. In the last seven weeks, the Indian stock market marked its best week since February 2021 as it closed at its highest. Cumulatively, the equity indices, Sensex and Nifty gained around 3-4 per cent during the week.
This week market participants will be the first to react to the earnings of index heavyweights Reliance Industries, Infosys, ICICI Bank and Kotak Mahindra Bank. There could be caution and volatility next week especially ahead of the US Fed meeting and the monthly expiration of futures and options contracts, although overall bulls are expected to have the upper hand as we have dropped 10 percent from 52-week lows over the past five weeks. have seen recovery. Experts said.
Ajit Mishra, VP – Research, Religare Broking said: “The coming week is action-packed as we have a lot of important data and events ahead of us. Firstly, participants will react to the results of index heavyweights like Reliance, Infosys, ICICI Bank and Kotak Bank in early trade. On the global front, the US Fed’s decision on the interest rate on July 27 and US GDP data on July 28 will be closely monitored. Meanwhile, the scheduled expiry of the July month derivative contracts will keep the participants busy.
Key factors affecting traders this week
Q1 Results
Over 400 companies are going to release their Corporate Income Scorecards next week, which includes 18 Nifty 50 firms that are Axis Bank, Tata Steel, Tech Mahindra, Asian Paints, Bajaj Auto, Larsen & Toubro, Bajaj Finance, Maruti Suzuki India, Tata Motors, Bajaj Finserv, Dr Reddy’s Laboratories, Nestle India, Shree Cement, SBI Life Insurance Company, Cipla, HDFC, NTPC and Sun Pharma.
FOMC meeting
Global investors will keep a close eye on the outcome of the two-day Federal Open Market Committee (FOMC) meeting from July 26-27. Most analysts expect a 75 basis point hike in interest rates to be on the lines expected since the Fed indicated a 50-75 bp hike in the last meeting, but it is little surprise if it is a percentage point higher. It could be a matter of. Experts said rate action would be aimed at controlling inflation but without hurting the labor market.
In addition to the Fed meeting, US GDP growth projections for the second quarter of the current calendar year will be closely monitored by investors next week.
commodity prices
“Crude oil has cooled to $96 a barrel, and many are cheering it as a sign of easing inflation. Similarly, metal prices are low, a delight for commodity consumers, but given the inflationary environment, you never know when the prices will rise again. Hence commodity prices will be an important trigger to watch,” said Sonam Srivastava.
FII’
FIIs seem to have increased their buying interest India As they became net buyers on a weekly basis for the first time after several months, buying shares worth over Rs 4,000 crore in the week ended July 22. As a result, their net sales for the month came down to Rs 6,400 crore from Rs. 10,000 crore for July.
Fall in dollar index, stabilization in oil prices, fall in other commodity prices and fair valuations after the recent fall in the market could be some of the reasons for the revival of sentiment on the FII desk. Their flow will be closely watched in the coming days as the Fed prepares to announce its interest rate decision next week.
Santosh Meena, Head of Research, Swastik Investmart Ltd, said: “It will be interesting to see the behavior of FIIs, as after a long period of time, they become net buyers for the week.”
Domestic institutional investors (DIIs) remained net buyers during the last week, buying shares worth Rs 940 crore, taking the total monthly inflows to Rs 8,300 crore in July, fully offsetting FII outflows.
Nifty Technical Outlook
“Technically, the market is in strong bullish momentum although there is an immediate hurdle at 16,800 nifty Then 200-DMA around 17,000 would be the next important hurdle so 16,800-17,000 area would be a holy supply zone where we can expect some profit booking, however a decisive move above 17,000, could lead to a strong rally in the market . On the downside, 100-DMA will be an immediate support level around 16,500, then 16340 will be the next important support level,” Meena said.
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