InvestorQ : What are the major trading and investment cues for the week starting on 01st August 2022?
vidhya Laxmi made post

What are the major trading and investment cues for the week starting on 01st August 2022?

diksha shah answered.
2 weeks ago

Here are the key triggers that you must watch out for in the coming week.

· Nifty closed with 2.7% gains, lower than previous week, but led by metals and IT. They are likely to be the broad themes for coming week too. The advance / decline ratio of the BSE universe improved sharply showing widespread rally and that was also evident in the mid-cap index gaining 2.51% for the week and small caps gaining by 2.45%.

· All eyes will be on the RBI monetary policy meeting that starts on 03 August and will culminate in the policy announcement on 05 August. The RBI monetary policy is expected to hike the rates by 25 to 50 bps in deference to the hawkishness shown by the Fed in its July meeting. This is the big macro event for the week.

· The results enters a crucial juncture for Q1FY23. Large cap results include ITC, SBI, Lupin, UPL, Britannia, Berger Paints, GAIL India, HPCL, Mahindra & Mahindra and Titan. Other mid cap company results in the week include Interglobe, Dabur, Marico, Escorts Kubota, Thermax, GCPL, Gujarat Gas, Tata Coffee, BHEL, GSPL. Keep an eye on Zomat and Paytm results in the digital space where the focus would be on cash burn and GMV.

· Two sets of macros could see reaction this week. Firslty the market will react to core sector numbers over the weekend, which was attractive at 12.7%. However, sequential growth was negative and that will be a concern. Auto sales numbers will also be out in this week and while PV numbers will be strong, focus will also be on CVs and 2-wheelers.

· Other macros for the week will include the PMI manufacturing and the PMI Services data to be announced on Monday and Wednesday respectively. While sequential growth may slow in PMI, the bigger would be the preliminary trade deficit numbers for July 2022 to be announced on Friday. It could put further pressure on the CAD.

· Last month saw some respite on FPI flows as they net bought equities worth $618 million in July 2022. It remains to be seen if the trend continues in August. Oil hardened to $110/bbl last week on weak dollar so the focus will on the OPEC meeting this week which is expected to boost supply of oil marginally so prices may taper lower.

· Key data points from US markets will focus on PMI, construction spending, API crude stocks, factory orders, vehicle sales, jobless claims, non-farms. Key data points from rest of the world will focus on EU PMI, PPI, Unemployment, retail sales; Japan household spending, PMI; China composite PMI.