Key developments that will drive the markets this week

Let us look at the key developments this week.

Jul 26, 2021 07:07 IST India Infoline News Service

The Indian stock markets started on a weak note last week imitating agitated global cues but it did not last long as sentiments took a U-turn by the latter half of the week.

All the sectoral indices on Friday has ended in positive, except for auto, energy and media.

In this week volatility to remain high due to the scheduled derivatives expiry of July month contracts. Besides, the earnings season would gain pace and some of the prominent names like Axis Bank, Kotak Bank, L&T, Tata Motors, Maruti, Colgate, Tech Mahindra, BHEL, IOC, Sun Pharma and Indigo will announce their numbers during the week along with several others.

Firstly, the stock markets will first react to results majors viz. Reliance Industries, ITC and ICICI Bank today. Besides, the update on the global COVID situation and US Fed meeting outcome on July 28 will be in focus.

Let us look at the key developments this week.

Q2 Results Expectations

On the earnings front, we have a long list of more than 380 companies of major corporates who will be announcing their numbers during the week. Some of the prominent names are Axis Bank, Kotak Mahindra Bank, Larsen & Toubro, Tata Motors, Dr Reddy's Labs, IndusInd Bank, Maruti Suzuki India, Nestle India, Tech Mahindra, Britannia Industries, Indian Oil Corporation, Sun Pharmaceutical Industries, UPL, DLF, SBI Life Insurance Company.

Marico, IDFC First Bank, NTPC, Alembic Pharmaceuticals, Apollo Pipes, Coromandel International, GSK Pharma, Jindal Stainless, KPIT Technologies, M&M Financial Services, Sun Pharma Advanced Research Company, Vedanta, Canara Bank, Dixon Technologies, InterGlobe Aviation, Karnataka Bank, Torrent Pharmaceuticals, TTK Prestige, ABB India, Birlasoft, Central Bank of India, Happiest Minds Technologies, IDBI Bank, Route Mobile, UTI Asset Management Company, Colgate-Palmolive, Indus Towers, JK Lakshmi Cement, LIC Housing Finance, Motilal Oswal Financial Services, PVR, TVS Motor Company, Union Bank of India, Bandhan Bank, BHEL, Equitas Small Finance Bank, Exide Industries, JSW Energy, Macrotech Developers, and Sobha will also declare results in this week.

Glenmark Life Sciences & Rolex Rings IPO to open for subscription this week

Glenmark Life Sciences will open its IPO for subscription during July 27-29, with a price band of Rs695-720 per share. The company is planning to raise Rs1,513.6cr through its public issue.

Rolex Rings will also open its offer on July 28 and will close on July 30. The company will announce the price band and further details on July 26.

Tatva Chintan ahead of listing on the stock exchange

Tatva Chintan Pharma Chem shares will list on the exchanges around July 29. The company witnessed a stellar subscription of 180.36 times during July 16-20.

Covid-19 updates

According to the Union Health Ministry data on Sunday, India’s active caseload today stands at 4,08,212 and active cases now constitute 1.30% of the country's total positive cases. India’s cumulative Covid-19 vaccination coverage crosses a landmark of 43 crore.

Delhi government on Saturday announced further relaxation in coronavirus-induced restrictions and allowed reopening of spas, theatres and cinema halls with 50% occupancy in view of the decline in Covid-19 cases in the national capital.

Delhi metro has also been given permission to operate with 100% seating capacity. The new guidelines will be effective from 5 am July 26.

FII flow in the last week

FIIs have net sold Rs5,444.57cr of shares during the week, taking the total monthly selling to Rs12,368.18cr in July, while DIIs have net bought Rs5,051.15cr worth of shares in a week, taking the total to Rs10,187.60cr in July.

Economy data in focus

Deposit & bank loan growth for the fortnight ended July 16 and foreign exchange reserves for the week ended July 23, fiscal deficit & infrastructure output for June, will be released on Friday.

Global data to look out in this week

The meeting of the Federal Open Market Committee is scheduled for two days - July 27-28.

Initial jobless Claims, Crude Oil Inventories, Pending Home Sales (MoM) (Jun) and FOMC Press Conference will be in focus for this week.

Technical Outlook

Markets witnessed a lacklustre week as the benchmark index Nifty remained rangebound throughout the week. 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 15600PE 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.

Gold & Silver outlook

MCX Gold has formed a bearish candle on the weekly chart after few weeks of positive close. On the daily chart, the price has fallen below 20 exponential moving average as well as 50 moving average. 20EMA and 50EMA are in bullish crossover on the daily timeframe. The daily RSI is in the bearish crossover. Going forward, the price of gold may remain sideward to negative.

MCX Silver price remained weak during the week. On the daily chart, the price has remained below the recent consolidation. Also, the price remained below 50EMA on the daily chart. The momentum indicator RSI is in a bearish crossover on the daily chart. Going forward, the trend may remain negative.

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