InvestorQ : What are major triggers you see for the coming trading week starting on 18th July 2022?
Arusha Ray made post

What are major triggers you see for the coming trading week starting on 18th July 2022?

diksha shah answered.
4 weeks ago

Here are some of the major cues for the coming week starting Monday.

· Nifty closed last week down 1.06% on the back of higher US inflation at 9.1% and India WPI at above 15%. Recession fears are rampant in the global economy. Meanwhile, there was a lot of value hunting by institutional investors in smaller stocks as the Mid cap index gained 1% for the week and small cap index gained 0.5%.

· On Saturday, HDFC Bank reported lower than expected numbers and gross NPAs were higher than expected. Key large cap results this week include Ambuja Cements, Wipro, Reliance, HDFC Life, HUL, JSW Steel, ICICI Bank, Ultratech, Kotak Bank. Mid-cap results include RBL Bank, Bandhan, Rallis, Gland Pharma, HZL, IDBI Bank, Crompton, Persistent.

· The dollar and the Euro will be cynosure of attention this week. The ECB Meet this week is likely to start rate hike cycle even as Japan maintains status quo. In currency markets, the Euro-Dollar exchange rate dipped to parity after almost 20 years. Meanwhile, the Indian rupee will be closely watched for a possible dip beyond the 80/$ levels.

· For a change, the FII selling was subdued this week at Rs10,459 crore with more than 75% offset by persistent DFI buying. Brent crude briefly dipped below $100/bbl in the week as recession fears dominate crude. But this could do good for India’s trade deficit and that would determine whether the rupee breaches 80/$ levels this week.

· An important India macro data point this week will be the forex reserves position data to be released on Friday 22nd July. The level has now dipped from $647 million to $580 million and may dip further in the coming week. Meanwhile, the F&O cues hint at 15,700 to 16,350 Nifty range. VIX falling to 17.59 levels provides trades reason to buy on dips.

· Finally, the focus will be on global data points. US data focus will be on foreign bond investments, Fed speeches, home sales, jobless claims, Manufacturing and Services PMI. Rest of the world (ROW) data focus will be on EU Inflation, ECB meet; Japan BOJ rates, trade, inflation; China Foreign Direct Investment (FDI) flows.