Key developments that will drive the markets this week

Let us look at the key developments this week.

Jul 19, 2021 07:07 IST India Infoline News Service

Domestic markets resumed the uptrend and ended on a positive note, with the Nifty50 closing the week at 15923.40, up by 1.49% and Sensex ended up by 1.4%, respectively. On the sectoral front, most sectors contributed to the move and closed higher.

During the week, top IT companies have declared their Q1FY22 results, wherein Wipro, LTTS and Mindtree reported strong numbers while Infosys missed the street estimate.

As the coming week is a holiday-shortened one, global cues and earnings announcements will continue to dictate the trend. Also, COVID-related updates and the progress of the monsoon will remain the focus this week.

The stock market will remain shut on Wednesday for Bakri Id.

Let us look at the key developments this week.

Q2 Results Expectations

On the earnings front, we have a long list of major corporates who will be announcing their numbers during the week. Some of the prominent names are Reliance, ACC, Asian Paints, Bajaj Finance, Bajaj Auto, HCL Technologies, HDFC Life Insurance, ICICI Prudential Life Insurance, Hindustan Unilever, Ultratech Cement, Ambuja Cement and JSW Steel.

Indian Bank, Mastek, Nippon Life India Asset Management, Ceat, Gland Pharma, Havells India, Jubilant FoodWorks, Polycab India, Tanla Platforms, Biocon, CSB Bank, Hindustan Zinc, ICICI Lombard General Insurance Company, Indian Energy Exchange, IndiaMART InterMESH, India Pesticides, Bank of Maharashtra, Persistent Systems, South Indian Bank, Wockhardt, Federal Bank, SBI Cards and Payment Services, United Spirits, Yes Bank, and MCX India will also declare results in this week.

Covid-19 updates

According to the Union Health Ministry data on Sunday, India recorded 41,157 new cases of covid-19 as active cases have marginally declined to 4.22 lakh while Kerala recorded the highest new cases.

On Saturday, Maharashtra has reported 8,172 new Covid-19 cases and 124 deaths which took the state's infection tally to 62,05,190 and death toll to 1,26,851, the health department said in a release.

The centre said that over 41.99 crore coronavirus vaccine doses have so far been provided to states and union territories. It further said that over 2.56 cr unused doses are still available with the States/UTs and private hospitals.

Meanwhile, the Haryana Government on Sunday extended the lockdown by a week, it will now stay in effect till 5 am on July 26. However, the state introduced more relaxations and allowed restaurants, malls etc., to be open till 11 pm with 50 per vent capacity.

2 IPOs to debut on exchanges on Monday

GR Infraprojects and Clean Science & Technology will debut on the bourses on Monday. As per street expectation, the shares of both traded at more than 60% premium in the grey market.

Tatva Chintan Pharma IPO is open for the subscription

Specialty chemical company Tatva Chintan Pharma will open for another two days for the bidding, its first day was on Friday, July 18, 2021. The IPO was subscribed 4.51 times on the first day of its issue.

The portion reserved for retail investors in the IPO was subscribed 8.24 times, highest among the three groups of investors. The portion set aside for the qualified institutional buyers (QIB) was subscribed 0.50 times, while the portion reserved for non-institutional investors (NII) was subscribed 1.14 times.

FII and DII updates

FIIs have net sold Rs2,667.16cr of shares during the last week, taking the total selling to Rs6,923.61cr in July, whereas DIIs have a net purchased Rs3,233cr worth of shares in the same period and their total buying in current month was Rs5,136.45cr.

Gold & Silver outlook
MCX Gold gained marginally during the week. On the higher end, the price traded above the 20 exponential moving average as well as 50 moving average. MCX Silver price remained mostly sideward during the week. However, on the final day of the week, the price corrected sharply suggesting a rise of bearish bet.

Most important global data for the week

The key global data points to watch out for in this week - Crude Oil Inventories, Initial Jobless Claims (USD), ECB Interest Rate Decision (EUR), Monetary Policy Meeting Minutes (JYP), API Weekly Crude Oil Stock (USD), U.S. Baker Hughes Oil Rig Count (USD).

Technical Outlook

Markets witnessed a stellar week with the benchmark index Nifty closing on lifetime highs.  Index Option gamma writers took the centre stage as the indices traded in a narrow range for the major part of the week. On the options front (July 29, 2021 expiry), the Nifty 15700PE strike price has witnessed fresh writing, hinting at a formation of a floor level for the index around the mentioned strikes in the coming days.

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