The upcoming financial coverage overview coupled with the continuing monetary outcomes season will affect the trajectory of key fairness indices within the week forward.
Accordingly, market observers, count on a status-quo on key lending charges in addition to hopes of wholesome Q1 earnings to push the indices’ larger.
Besides, the course of international fund flows, will even influence traders’ sentiments.
Earlier, India’s fairness markets ended the earlier week virtually on a flat observe – with NSE Nifty50 down by 0.59 per cent, whereas S&P BSE Sensex was down 0.73 per cent.
“Nifty has repeatedly run into resistance in the 15862-15899 band over the past 6 sessions.However the lower shadows (area between the lows and close) are growing over the past three weeks, suggesting sharp recovery post higher selling pressure,” stated Deepak Jasani, Head of Retail Research at HDFC Securities.
“How long such recoveries will continue is a moot point. Nifty could remain in the 15578-15899 band in the coming week.”
The financial coverage overview is slated for August 4-6.
Furthermore, corporations like HDFC, PNB, Airtel, Adani Enterprises, HPCL, SBI, Titan, Shipping Corporation of India, and Dabur are anticipated to announce their Q1 incomes outcomes subsequent week.
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “In the week ahead, markets will take support from ongoing corporate earnings season, upcoming RBI’s MPC meeting, Auto sales numbers, and slew of macro data.”
“Overall, the result season so far has been healthy and is providing g support to the market. This has helped the market to largely sail through the headwinds of a possible third Covid wave, commodity led inflation and volatility around the US Fed taper talk. While the Index may be trading in a tight range, the gradual opening up of the economy and an improved demand backdrop do offer bottom-up opportunities.”
Furthermore, traders will look out for the PMI manufacturing and companies’ figures, together with month-to-month vehicle gross sales knowledge will likely be launched throughout the week.
“To give a view on economic recovery, the market awaits the release of Manufacturing and Service PMI data,” Geojit Financial Services Research Head Vinod Nair.
In addition, Joseph Thomas, Head Of Research, Emkay Wealth Management stated: “The relatively more important factor to reckon with would be the Chinese ban on exports of certain commodities by Chinese firms including fertilisers may push up the cost of these products for the rest of the world, and may have consequences for trade and commerce in the near term.”
“Some of those components might proceed to dominate the discussions within the coming weeks too, because the markets reopen for enterprise subsequent week.”